The Freedom Watch

Obamanomics, as Captured by Cartoonists

"As evidenced by my political cartoon contest, I’m a big fan of that form of satire. And if I’m looking at cartoons specifically about statist economic policy, my favorites include Chuck Asay’s dead pig cartoon, as well as his cartoon about the big bad wolf. And this Michael Ramirez headwinds cartoon is one of the most-viewed posts in the history of my blog, though I personally prefer his European lemming cartoon. Now let’s add some more cartoons to the collection, beginning with a Michael Ramirez gem about Detroit." Continue reading →

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Doug Casey: “We’re Still In The Midst Of The Biggest Bubble In World History”

"We’re still in the midst of the biggest bubble in world history. It’s bigger than the tech stock market bubble around the turn of the century. It’s bigger than the real estate bubble…[it's] the bond bubble. With interest rates ranging from zero to a few percent—this is the biggest bubble in history and when it collapses, it’s going to be catastrophic because the bond market is so huge. It’s much bigger than the stock market is. [..] We’re pretty close to the edge of the precipice…it’s fascinating to watch but I can’t be optimistic about the next few years…[but] that doesn’t mean the world is going to come to an end—It just means it’s going to be reorganized.” Continue reading →

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18 Signs That Global Financial Markets Are Entering A Horrifying Death Spiral

"The much anticipated 'financial correction' is rapidly approaching, and investors are starting to race for the exits. We have not seen so many financial trouble signs all come together at one time like this since just prior to the last major financial crisis. It is almost as if a 'perfect storm' is brewing, and a lot of the 'smart money' has already gotten out of stocks and bonds. Could it be possible that we are heading toward another nightmarish financial crisis? Could we see a repeat of 2008 or potentially even something worse?" Continue reading →

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Analysts: Muni-Bond Selloff Looks Like Lehman All Over Again

"It's wrong to just take to periods and look at empirical data to forecast out. You need theory to explain the moves and any similarities. The similarities come about based on Austrian Business Cycle Theory, which says a slowdown in money printing results in a shrinking in the capital structure of the economy. As a result there is upward pressure on interest rates, as those seeking funds must bid up rates to entice investors. It such a slowdown in money growth occurring? It sure is. Just like it did in 1929, 1987 and 2008." Continue reading →

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Would you like unlimited days off?

"The practice is gaining ground in places like Silicon Valley, where start-ups spring up like weeds and venture capitalists who have never seen a timecard make little if any distinction between 'work' and 'nonwork' time for themselves or their employees. For employers, the benefits of unlimited vacations include not having to use staff time to track and record vacation hours. There’s no need to pay employees for their 'accrued' vacation time if they leave; they don’t accrue any. Among the companies that have already put an unlimited vacation policy in place are Netflix; Best Buy; Zynga, the online game maker; and Rodale, the magazine publisher." Continue reading →

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New crowdfunding site JumpStart Fund hopes to launch new startups

"The new platform called JumpStart Fund, marrying crowd-sourcing with crowdfunding, comes from the California-based online community called Jumpstarter, which has been involved in matching investors with technology opportunities. JumpStart Fund was designed to be an online community where people can share ideas and build businesses based on patented technology, with individuals getting stakes in startups based on what they bring to the mix. JumpStart is working with federal research labs holding thousands of patents deemed public property because they were paid for with tax dollars and is reaching out to US universities and private facilities." Continue reading →

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The European Economy You Must Own

"The catalyst that will emerge is Poland’s inclusion in the euro zone in the next few years. When that happens, every institutional investor in the world with a euro focus will flood into Polish stocks. At this moment, many look at Poland and say it’s too early to invest there. That’s the wrong mentality. Polish companies are strong. The Polish economy is strong. Stocks are cheap. It’s not like you’re trying to catch a falling knife. In this case, the knife has already landed in the block of wood, and it stopped vibrating long ago. Today, you can just walk up and grab it by the handle without fear." Continue reading →

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The Forgotten Country Where Profits Beckon

"In my travels through Eastern and Southeastern Europe over the last couple of years, I’ve heard time and again about the Germans. They’re everywhere. In Hungary. In Turkey. In Slovakia. In Romania. They’re all over Poland. And like Genghis Khan, they’re invading Kazakhstan in search of oil and gas and other natural resources the Germans need to power the great German manufacturing machine. Honestly, you could do a lot worse as an investor than following Germany around the world. Unlike the U.S., the Germans are flooding into some of the fastest-growth markets in the world – Mongolia, Eastern Europe and Kazakhstan." Continue reading →

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Debt Excess and the Liquidation Process in a Historical Context

"We find it constructive to divide debt into three categories based on the criteria of capital consumption. We'll start with liabilities taken on with the intent of making a subsequent sale at a profit: in other words, debt that increases the capital base, such as business loans. We call this 'good' debt. In the second category, we have mortgages, financial sector loans and foreign debt, all of which are classified as 'bad' debt. In the third and last category, we have debt that allows pure capital consumption, such as consumer credit and government debt. It should be obvious that consumptive debt cannot exceed productive debt for an indefinite period of time." Continue reading →

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“The Biggest Growth Opportunity in the History of Capitalism”

"While America’s middle class is disappearing, there’s a whole new middle class rising around the globe. Over the past two decades, urbanization and market-oriented economic policies have powered the growth of this new consumer class. This new middle class is demanding access to clean water, clothing, TVs, health care, housing, food … you name it. McKinsey Global Institute calls the rise of this new middle class 'the biggest growth opportunity in the history of capitalism … an economic force that’s over 1,000 times as big as the Industrial Revolution.'" Continue reading →

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