Philadelphia Fed Business Outlook: See that dip and then up-spike in late 2010? The up-spike was the start of QE2. The markets are now pricing in the scheduled end of QE2 next month. Would anyone care to guess what happens next? What happens when the irresistable force meets the immovable object? Peter Schiff has some [...]
If anyone believes the political establishment has a solution to the debt problem, please visit one of Virginia's close-minded "conservative" republican establishment political blog sites, bearingdrift, and see for yourselves. From an article posted there titled "Virginia Candidates React to Debt Ceiling Issue": That the U.S. has a debt ceiling at all is unusual. Most [...]
And it's not some Tea Party tinfoil hat whacko who thinks so; it's Mohamad El-Erian, co-CEO of PIMCO, the world's largest bond fund, with over $1.3 Trillion under management. "The co-CEO of the world’s largest bond fund has warned America that it faces a combination of higher inflation, austerity and financial repression over the coming [...]
But we're not there, at least not yet. From WaPo: Follow the link and click on the graphic to see the trajectory for the federal debt. We will not have run out of other people's money until the other nations of the world stop lending to us. That day is coming, IMO, and you should [...]
Any economist or economic historian will tell you: volatility will kill you. Any physical scientist will tell you that a system that experiences oscillations that rapidly increase in size will soon tear itself to pieces. Please watch the illustration below; it is the famous "Tacoma Narrows Bridge." "Galloping Girtie" was a bridge made of concrete [...]
...was on C-Span call-in program this morning. It's all about math; politics provides nothing more than a distraction, and the Congressman gets plenty of callers who illustrate the point. The math of federal fiscal policy doesn't work anymore. Pay attention especially starting at about 7 minutes where the Congressman expresses his frustration with political posturing [...]
Mises died in 1973. Capitalism: [Accustomed] to the conditions of a capitalistic environment, the average American takes it for granted that every year business makes something new and better accessible to him. Looking backward upon the years of his own life, he realizes that many implements that were totally unknown in the days of his [...]
Bernanke speaks on Wednesday, justifying dollar debasement; The FOMC (Open Market Committee) released their statement at 12:30 pm. The dollar promptly tanks, and wholesale prices rise commensurately. U.S. Dollar Index: Meanwhile, former (Bush II) Treasury Secretary Paul O'Neill makes this statement Wednesday during an interview on Bloomberg: "I think the people who are threatening not [...]
...because a society doesn't need to produce, it only needs to consume! Full article at link. After a weekend full of empty (or not) Chinese posturing, Marketwatch's Brent Arends has an interesting tidbit to add to the China vs US debate. "The International Monetary Fund has just dropped a bombshell, and nobody noticed. For the [...]
Do you want to know why food and fuel costs are soaring? The Dollar is breaking down. Do you want to know why the Dollar is breaking down? The madmen at the Fed are printing them to fund federal spending. Do you want to know why the federal government is spending them so fast? Here's [...]
From the UK's online Guardian publication: Security researchers have discovered that Apple's iPhone keeps track of where you go – and saves every detail of it to a secret file on the device which is then copied to the owner's computer when the two are synchronised. The file contains the latitude and longitude of the [...]
Probably the most important aspect of business is trust. Trust is, of course, built on competence and truth-telling. Your business partners will not trust you if you are an idiot, and they will not trust you if lie to them repeatedly. It is never a good idea to start out a business relationship with a [...]
