Alt/Indie News

Texas Senate Passes Bill to Establish Gold & Silver Bullion Depository

"A bill taking a step towards gold and silver as commonly-used legal tender in Texas passed in the state Senate today by an overwhelming 29-2 vote. What the bill essentially does is create a means for transactions to occur in precious metals. It allows people to open an account and deposit their precious metals in the state depository. They could then use the electronic system to make payments to any other business or person who also holds an account. This opening of the market is considered by many insiders to be the most important first step towards bringing sound money to mainstream acceptance." Continue reading →

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IOU’s: China Buys Treasury Debt

"China, meaning China’s central bank — the People’s Bank of China — started buying Treasury IOU’s again in March. It purchased $36 billion worth. It now holds over $1.2 trillion in Treasury IOU’s. China has now leaped ahead of Japan as the #1 foreign holder of U.S. government debt. Add Hong Kong to this: another $180 billion. In short, the Communists are subsidizing American consumers (cheap goods) and American politicians (low interest rates/more debt). The Chinese masses are paying for this: reduced wealth. Americans get this wealth. Communist politics + mercantilist economics = stupidity. It won’t go on forever. Enjoy it while you can." Continue reading →

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Cyprus: 16 months of capital controls, banks still pitifully capitalized

"It’s been over a year since the banking system in Cyprus officially went bust. On Friday, March 15, 2013, practically everyone in the country went to bed thinking that everything was just fine. Many had probably gone to the bank that very day to do business, or logged on to an Internet banking platform. Yet the very next morning, they woke to a completely new reality: the nation’s banks were broke, and the government was in no position to rescue them. All the promises they had been told about government guarantees and having a ‘well-regulated’, sound banking system turned out to be lies." Continue reading →

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IMF pronounces Bulgaria’s banks safe, 2 weeks before bank run

"Earlier this summer, IMF bureaucrats went to Sofia, Bulgaria to study the country’s economic progress. And roughly a month ago, they released an official report which stated, among other things, that Bulgarian banks are 'stable and liquid.' Talk about epic timing. Because less than two weeks later, Bulgaria’s banking system was in the throes of a full-blown crisis. There was a run on two of the nation’s largest banks—several hundred million dollars had been withdrawn in a matter of hours. And the Bulgarian central bank had to step in and take over both of them or risk a collapse in the entire system." Continue reading →

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The Logical Conclusion of the Modern, Monetary Argument

"One of the most terrible things about the globalization of finance, money and industry is that it homogenizes booms and busts. There is literally nowhere to go. As economic centralization continues, these cycles will only worsen. These days in the West – and certainly in Washington – Republicans are sure they can mandate a technocratic interest-rate rule that will restrain the Fed from doing inordinate damage to the economy. Ironically, Democrats argue for more flexibility and less government interference regarding money. This would be admirable from a free-market standpoint except that they are arguing on behalf of a MONOPOLY facility. As usual, both parties get it wrong." Continue reading →

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The Feds Step Up Utility Growth

"Federal regulators’ recent move to change the criteria used to calculate regulated utilities’ allowed returns may be a small victory for income investors. Over the past few years, regulators pared utility profits in response to ultra-low Treasury rates. But investors and energy executives have long argued that these historically low rates are a market distortion created by Federal Reserve stimulus and, therefore, do not accurately reflect utilities’ actual operating environment. The order in late June by the Federal Energy Regulatory Commission (FERC), the agency that regulates the transmission and wholesale sale of electricity in interstate commerce, finally acknowledged this reality." Continue reading →

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The Fed Chairs Have a Habit of Hazing

"Paul Volcker took over as Chair of the Fed in August 1979. A recession officially began five months later. This was the worst recession since the Great Depression. In August 1987 Alan Greenspan took over the Fed. Two months later 'Black Monday' occurred on October 19, 1987, when the Dow dropped 22.6% that day alone–the worst one-day crash in history. In February 2006 Ben Bernanke became Fed chair. The worst recession since the Great Depression officially began in December 2007, and you may recall there was some trouble in the financial markets in September 2008… In January 2014 Janet Yellen became Fed chair." Continue reading →

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Fed Hawks Want Rate Hikes Soon

"A trio of inflation hawks at the Federal Reserve — Richard Fisher, Esther George and Charles Plosser — believe it's about time to take the punch bowl away. The three regional Fed bank presidents are on a mission to urge their colleagues to take a tougher monetary policy stance, CNNMoney reported. If they are successful, Americans would be hit with higher rates on mortgages, small business loans and credit cards, and many on Wall Street fear bonds and stocks would also suffer. But the Fed hawks believe the alternative to tighter policy could be high inflation and more dangerous asset bubbles." Continue reading →

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Robbing Peter

"Spain may defend its decision by pointing out that it has one of the lowest tax takes in the European Union, which is true. However, what should be the issue here is not the amount of tax being imposed, but the principle upon which the tax is being taken. Let there be no doubt about this bail-in or any other—it is pure theft. The measure in Spain is also an advance on the concept that, as long as an emergency is perceived to exist, confiscation is justified. In Spain, no emergency situation is being pretended; they simply want the money and have decided to take it." Continue reading →

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Spain Issues Retroactive 0.03% Tax on Bank Deposits

"Spain will retroactively tax bank deposits to January 1, 2014 stating the move will boost growth and job creation. Guru Huky correctly labeled the tax for what it is 'More than a tax, this looks like a mini seizure of deposits. Someone likely needs a few million and to balance the books.' The notion that a tax increase will boost the economy is of course absurd. But don't worry, it's only 0.03%, nudge nudge, wink wink ... for now." Continue reading →

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