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Penalizing Prudence
PENALIZING PRUDENCE “Economy, prudence, and a simple life are the sure masters of need, and will often accomplish that which, their opposites, with a fortune at hand, will fail to do.” – Clara Barton “Affairs are easier of entrance than of exit; and it is but common prudence to see our way out before we venture […]
Currency Which Expires – That’s the Solution – Or Just Cancel it all?
Currency Which Expires – That’s the Solution – Or Just Cancel it all? Back during the Great Depression, there were people who theorized that gold hoarding was preventing economic recovery. There is always this same theory that people who save hoarding their money and are not spending it results in the lack of a recovery […]
Japan’s “Deflationary Mindset” Grows As Household Cash Hordes Reach Record High
Japan’s “Deflationary Mindset” Grows As Household Cash Hordes Reach Record High After being force-fed more stimulus than John Belushi, and endless rounds of buying any and every asset that dares to expose any cracks in the potemkin village of fiat folly, Japan remains stuck firmly in what Abe feared so many years ago – a […]
Saving and Money–What is the Relationship?
SAVING AND MONEY – WHAT IS THE RELATIONSHIP? Conventional wisdom says that savings is the amount of money left after monetary income was used for consumer outlays, implying that saving is synonymous with money. Hence, for a given consumer outlays an increase in money income implies more saving and thus more funding for investment. This […]
Should the Fed Raise Interest Rates?
Should the Fed Raise Interest Rates? For some time now the Fed has been hinting that it will moderate its interventions–monetizing government debt by printing money to buy government bonds and now quantitative easing by printing money to buy corporate bonds–in order to drive down the interest rate to unprecedented low levels. The Keynesian theory […]
The Declining Interest Rate Cap
The Declining Interest Rate Cap Believe it or not, one of the topics in economics that confuses macroeconomists is the actual role of interest rates. For the most part they just assume that an interest rate is the cost of money, the price of money, or even the transfer of the fruits of production from […]
Goldman Sachs——-Perpetuator Of The Fed’s Jihad Against Savers
Goldman Sachs——-Perpetuator Of The Fed’s Jihad Against Savers You can’t blame Janet Yellen entirely for the growing prospect that the Fed will take a powder on Wednesday and opt for the 81st straight month of ZIRP. After all, she’s basically a fuddy duddy school marm caught in a 1970s labor economics time warp—–a branch of the […]
FED LUNACY IS TO BLAME FOR THE COMING CRASH
FED LUNACY IS TO BLAME FOR THE COMING CRASH This week John Hussman’s pondering about the state of our markets is as clear and concise as it’s ever been. He starts off by describing the difference between an economy operating at a low level versus a high level. He’s essentially describing a 2% GDP economy […]
Financial Shenanigans Should Have Trained Me For This
Financial Shenanigans Should Have Trained Me For This So there I was, caught in a bramble of sharp blackberry thorns coming from every direction. I’d been snagged first by the swooping thorn from high up that caught my hair, then by two more barbed branches that grabbed my pants and arm as I tried to […]
An Important Economic Indicator – Money Velocity – Crashes Far Worse than During the Great Depression
An Important Economic Indicator – Money Velocity – Crashes Far Worse than During the Great Depression Underneath the Propaganda, the Economy Is In BAD Shape … We noted 3 years ago that the velocity of money – an important economic indicator – is lower than during the Great Depression. Things have gotten even worse since since […]
The Euthanasia Of The Saver
The Euthanasia Of The Saver What have been the economic consequences of ultra-low interest rates? The answer might not be as hopeful as you may think. While better known for the role of government in stimulating the economy, John Maynard Keynes, one of the most influential economists of the 20th century, also provided the intellectual […]
