Economics

The Most Dangerous Conspiracy of All Time

"They justified their 'revolution' by saying they’d end the conspiracy and bring order to society. But in reality, they only made things a lot worse. The country I’m talking about is Brazil — and the social blight I described was especially apparent in the central and northern regions where I lived and traveled in the 1950s and ’60s. The conspiracy: The deliberate policy of massive money printing by the central bank, the Bank of Brazil. The immediate consequence: Hyperinflation. The long-term impact: Destruction of wealth, erosion of social institutions, mass corruption in government, enrichment of the few, impoverishment of the many, and chaos." Continue reading →

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Bill Bonner: Will Japan’s radical gamble work?

"The BOJ says it just wants to get inflation to 2%. It says it will buy assets with money that didn't exist previously...and keep buying...until inflation reaches 2%. Then what? Well, we guess it will stop. And then what? Then, it will have an economy that has come to expect 70 billion yen in new money every month. And an economy with a monetary base of BOJ assets maybe twice what it is today. People make radical gambles now and then. Businessmen might take a chance now and then. Gamblers might go for long odds. Lovers might hope to get lucky. For a central bank to make a 'radical gamble' bespeaks desperation and lunacy." Continue reading →

Continue ReadingBill Bonner: Will Japan’s radical gamble work?

Bill Bonner: Will Japan’s radical gamble work?

"The BOJ says it just wants to get inflation to 2%. It says it will buy assets with money that didn't exist previously...and keep buying...until inflation reaches 2%. Then what? Well, we guess it will stop. And then what? Then, it will have an economy that has come to expect 70 billion yen in new money every month. And an economy with a monetary base of BOJ assets maybe twice what it is today. People make radical gambles now and then. Businessmen might take a chance now and then. Gamblers might go for long odds. Lovers might hope to get lucky. For a central bank to make a 'radical gamble' bespeaks desperation and lunacy." Continue reading →

Continue ReadingBill Bonner: Will Japan’s radical gamble work?

Trust in Gold Not Bernanke as U.S. States Promote Bullion

"Lawmakers in Arizona are poised to follow Utah, which authorized bullion for currency in 2011. Similar bills are advancing in Kansas, South Carolina and other states. The Utah Precious Metals Association, established after passage of the 2011 law to advocate for the use of gold and silver coins, has about two dozen members enrolled in a two month-old bill-pay service in which their accounts are held in gold, said Lawrence Hilton, the group’s chairman. Hilton envisions a future with an alternative monetary system based on precious metals in which merchants accept silver coin while gold mostly backs electronic transfers." Continue reading →

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Look Out Below, The Obamacare Chaos Is Coming

"The harsh reality of Obamacare is that tens of millions will lose their employer provided insurance because of the perverse incentives under the program. Even the establishment CBO admits that at least 7 million, and as many as 20 million, will lose their employer coverage. Workers who do not receive employer provided coverage are eligible to purchase their health insurance on the state Exchanges with extensive taxpayer subsidies to help cover the cost. Employers can terminate their employee coverage, give their workers a raise with part of the savings, and let the taxpayers bear the cost of subsidizing their coverage in the Exchanges." Continue reading →

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Backfire on Obama — Gun Control

"How serious are Americans about buying guns? Enough to apply for a background check to buy one. How many Americans have applied for a background check since the day Obama was inaugurated? Go on. Guess. The answer: over 70 million. Think about this. Over 70 million adult Americans went to the trouble of identifying themselves as gun owners. This sends a message to Congress: 'Don’t mess with our guns.' This sends a message to gun control advocates: 'You haven’t got the votes.' Talk about futility. Gun controllers say that they represent the true feelings of Americans on guns. But where is their evidence?" Continue reading →

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Gun Control in Connecticut Is a Bonanza for Gun Sellers Outside of Connecticut.

"This sends a message to the world outside of New York, Illinois, Connecticut, and California: buy while you still can. Buy at gun shows. Pay a little more. Get off your duff. Is gun control coming? No. Then why buy? Because newcomers think gun control is coming. Prices will go up. The mania will spread. This is not a bubble market. This is the new normal. The liberals want gun control. They are not going to get it in heartland America. What they are getting is the opposite of what they say they want: a new dedication to buy guns and ammo is spreading like a prairie fire across the nation." Continue reading →

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Texas vs. California

"I’ve been pointing out the differences between California stagnation and Texas prosperity for quite some time. And since California voters approved a new 13.3 percent top tax rate last November, I expect the gap to become even wider. Simply stated, California is the France of America and Texas is the Cayman Islands of America. So it’s understandable that the Governor of Texas is telling employers in California that his state has a better climate for job creation. Texas is clearly doing better on jobs, and it’s easy to avoid higher taxes when you obey Mitchell’s Golden Rule and restrain the burden of government spending." Continue reading →

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Illinois Ranked Last In Personal Freedoms, New Hampshire #4

"We’re ranked #45 overall for freedom, and dead last for personal freedoms. We’ve been at the bottom of that list since 2007. The reasons? It’s hard to get high and/or carry a gun around here. Illinois also has harsh asset forfeiture laws, which put the burden of proof on property owners and grant 90 percent of proceeds from seized property to law enforcement. The freest state, according to the study, is North Dakota, which has low taxes and loose gun laws. The freest state, according to the study, is North Dakota, which has low taxes and loose gun laws. New Hampshire’s motto is 'Live Free or Die' (and indeed, New Hampshire ranked #4 in the survey)." Continue reading →

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