History Repeating

Austrian Theory Explains and Exposes Booms and Bubbles

"The problem of the business cycle arises when the loan rate of interest diverges from the natural rate of interest. While this divergence could happen in a free banking system, the major divergence occurs under central bank regimes when large reductions of the interest rate are executed by injecting money into the banking system over a long period of time. A larger volume of loans is thereby made possible. The lower interest rate increases investment and consumption and reduces savings. These changes in the economy provide the conditions for a boom in the economy. If the new funds are funneled into a specific sector of the economy, a bubble could result." Continue reading →

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Media Buries Psychiatric Drug Connection to Navy Shooter

"Alexis 'had been treated since August by the Veterans Administration for his mental problems.' Alexis also suffered from PTSD, blackouts and anger issues – all of which are treated with SSRI drugs. The most common form of treatment for PTSD is Paroxetine, which is listed as the number 3 top violence-causing drug by the Institute for Safe Medication Practices (ISMP). Despite it being reported that prescription drugs were found in the apartment of ‘Batman’ shooter James Holmes days after the Aurora massacre, it took nine months to find out exactly what those drugs were. Like Columbine killer Eric Harris, Holmes had been taking Zoloft, another SSRI drug linked with violent outbursts." Continue reading →

Continue ReadingMedia Buries Psychiatric Drug Connection to Navy Shooter

Media Buries Psychiatric Drug Connection to Navy Shooter

"Alexis 'had been treated since August by the Veterans Administration for his mental problems.' Alexis also suffered from PTSD, blackouts and anger issues – all of which are treated with SSRI drugs. The most common form of treatment for PTSD is Paroxetine, which is listed as the number 3 top violence-causing drug by the Institute for Safe Medication Practices (ISMP). Despite it being reported that prescription drugs were found in the apartment of ‘Batman’ shooter James Holmes days after the Aurora massacre, it took nine months to find out exactly what those drugs were. Like Columbine killer Eric Harris, Holmes had been taking Zoloft, another SSRI drug linked with violent outbursts." Continue reading →

Continue ReadingMedia Buries Psychiatric Drug Connection to Navy Shooter

WATCH OUT BELOW: S&P 1987 Compared with S&P 2013

"It's a terrible mistake to just look at the data from two time periods and forecast the trends to continue. However, as I have been pointing out at the EPJ Daily Alert, there are many reasons to suspect another crash may be on the way: 1. Money supply growth has declined dramatically since the start of the year. 2. There is a natural tendency for the consumption-savings ratio to move towards consumption, starting in September. BTW: In the summer of 1987, money supply, in the manner I track it in the EPJ Daily Alert, collapsed, just like it has this summer." Continue reading →

Continue ReadingWATCH OUT BELOW: S&P 1987 Compared with S&P 2013

Everything’s Fixed, Everything’s Great

"Much to the amazement of doom-and-gloomers, everything's been fixed and as a result, everything's great. The list is impressive: China: fixed. Japan: fixed. Europe: fixed. U.S. healthcare: fixed. Africa: fixed. Mideast: well, not fixed, but no worse than a month ago, and that qualifies as fixed. Everything's fixed, because everybody that can create their own money can do so without limit or consequence. It's a perpetual money machine, and that fuels a perpetual growth machine. No limits on credit and debt means no limit on spending. Free money for everyone and everything--it's unbelievably easy. The solution to every problem is at hand: create more money and credit, in ever larger sums." Continue reading →

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Peter Schiff: The Taper That Wasn’t

"The Fed's failure today to announce some sort of tapering of its QE program, despite the consensus of an overwhelming percentage of economists who expected action, once again reveals the degree to which mainstream analysts have overestimated the strength of our current economy. The Fed understands, as the market seems not to, that the current 'recovery' could not survive without continuation of massive monetary stimulus. Mainstream economists have mistaken the symptoms of the Fed's monetary expansion, most notably rising stock and real estate prices, as signs of real and sustainable growth. But the current asset price bubbles have nothing to do with the real economy." Continue reading →

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Janet Yellen On The Financial Crisis: “I Didn’t See Any Of That Coming”

"'For my own part,' Ms. Yellen said, 'I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.' Her startled interviewers noted that almost none of the officials who testified had offered a similar acknowledgment of an almost universal failure." Continue reading →

Continue ReadingJanet Yellen On The Financial Crisis: “I Didn’t See Any Of That Coming”

Ron Paul Questions The Double-Dealing Empire

"How can the U.S. be both fighting Al Qaeda, and at the same time aiding them to overthrow Assad in Syria? Well, this isn't the first time that Ron Paul has posed this type of question. Let's rewind back to 1983, when the bogeyman was The Soviet Union. Here's Ron Paul speaking on the House floor, asking an almost identical question: 'Why are we engaged in military action against the Communists in which American lives are being lost when we cannot take the simple action of cutting off the flow of money to the Communists? For decades we have pursued this immoral course of action, asking American men to die fighting an enemy the American government has financed.'" Continue reading →

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Arming Terrorists and Disarming Americans

"The Obama administration’s plan to provide small arms to the Syrian Rebels was approved by Congress. Good luck finding the transcripts of these committee meetings though… they were classified. When asked about the Senate Intelligence Committee’s vote to arm the rebels, Sen. Dianne Feinstein (D-CA), the committee chair, responded 'It’s classified.' (Which is a polite way of saying ‘it’s none of your business’) That’s right. Dianne Feinstein — the author of the 'Assault Weapons' Ban – doesn’t believe that the American people have a right to know who the government is giving small arms to. That oversight requirement apparently only should apply to American citizens." Continue reading →

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