Economics

Danes Rethink a Welfare State Ample to a Fault

"While much of southern Europe has been racked by strikes and protests as its creditors force austerity measures, Denmark still has a coveted AAA bond rating. But Denmark’s long-term outlook is troubling. The population is aging, and in many regions of the country people without jobs now outnumber those with them. Some of that is a result of a depressed economy. But many experts say a more basic problem is the proportion of Danes who are not participating in the work force at all — be they dawdling university students, young pensioners or welfare recipients like Carina who lean on hefty government support." Continue reading →

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The hidden dangers of legal highs

"In comparison with regular drugs, there is hardly any data on the harm these new drugs do. Manufacturers in the UK, China and eastern Europe take any of these chemicals or dozens more, blending them with inert substances into uncontrolled, unstated doses, and selling them online. These products, with names such as Barry White and Dutchy, are the most concerning: customers are very often young people, some of whom find it hard to buy drugs anywhere else, or prefer to stay on the right side of the law. Manufacturers do not list their contents, or give any dosage instructions, since to do so would render them liable for prosecution." Continue reading →

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Jim Bovard: How ‘Food for Peace’ Hurts Foreign Farmers

"The United States government is the world's largest food donor but its aid consistently wreaks havoc abroad. The Obama administration is pushing reforms that could slightly reduce the number of Third World farmers bushwhacked by American food dumped into their marketplaces. But there is scant enthusiasm in Washington for any fix of a program that is beloved by many special interests. The U.S. launched the Food for Peace program in 1954 during the Eisenhower administration, largely to dispose of embarrassing crop surpluses that had been encouraged by federal farm programs. The annual cost to taxpayers? Last year, it was roughly $1.5 billion." Continue reading →

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The Market Shall Set North Korea Free

"Today, when North Koreans are ordered by their state employer to take part in political activities, they know their time is being wasted. Fewer North Koreans show up for their state jobs. This growing economic and psychological independence among regular people is becoming the greatest thorn in the regime’s side. It is also the key to change. Instead of focusing on the regime and its agents as possible instigators of reform, we must recognize the power of the flourishing marketplace to slowly but definitively transform North Korea from the bottom up." Continue reading →

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Bitcoin vs. Ben Bernanke

"Thousands of mostly small online merchants are already accepting payment in Bitcoin, The virtual money that debuted in 2009 with a value of zero and traded for the first time in 2010 at a price of three-tenths of a cent recently changed hands at $97. For Mr. Andresen, a Princeton graduate who once wrote technical standards for 3-D graphics on the Internet, Bitcoin has already begun to replace the U.S. dollar. In November, the Bitcoin Foundation, where he serves as chief scientist, began paying him in the virtual currency. So far he has persuaded his barber to accept this new money, but only from Mr. Andresen. A haircut costs half a Bitcoin." Continue reading →

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Fractional Reserve Banking: It’s Not Your Money…You Only Think It Is!

"In the aftermath of the forced confiscation of bank accounts in Cyprus, the question that clients ask me most is, 'could it happen here?' 'Here' is wherever the client lives or invests, and could be the United States, Canada, Australia, New Zealand, Switzerland, or any other country. The answer is yes. This result stems from the nature of our modern financial system, built as it is on the flawed foundation of a poorly-understood concept called 'fractional reserve banking.' This new reality is harsh, but as I said before, it’s healthy. People need to be reminded that money deposited in a bank converts their wealth into a debt-claim." Continue reading →

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Government’s New Regulation That Screws Corporate Pensioners

"The latest is a new government regulation that was snuck into a transportation bill, Moving Ahead for Progress in the 21st Century, aka, MAP-21. Some progress, the bill requires corporations to calculate payments into pensions based on a 25-year average on interest rates, instead of current rates. In other words, with current low rates, corporations in reality need to make larger contributions to meet pension fund growth goals. But according to new government regulations, corporations now need to calculate pension fund payments based on an interest rate earned on pension assets that can't possibly be earned." Continue reading →

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Shock: Federal Reserve Official Calls for End of Fed, Competing Currencies

"This is a fairly shocking video in the sense that the gentleman being interviewed is a former Fed official. He calls for a free-market gold and silver standard along with competing currencies – just what we've been suggesting. What is just as interesting is the focus on the Fed as a central bank. Stossel points out that central planning has been discredited the world over, so why does the world have central planning for money? This is a big issue and one that will not go away. After a century of central banking the world is in a bad state and getting worse not better." Continue reading →

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Bill Bonner: American grifters

"Here on the pampas, on the other hand, the Argentinians know better. Their brains have been sharpened by adversity and enlarged by necessity. They know they’re getting ripped off by the government. They find ways to protect themselves. 'There are invoices, and there are invoices. You can get an invoice at the official rate, or one at the unofficial rate. Or one that is not at any rate at all. A, B, or C. The government rigs the system to cheat us; we rig it right back. You just have to make sure you have the right invoice for the right transaction. At the end of the year, people buy and sell invoices. Everybody’s got a trick or two. You have to. Otherwise, you’re a sap.'" Continue reading →

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