Mad Statists

Inflation: Robbing You Since the 10th Century

"Humans have been screwing up money for centuries, beginning with China's printing of jiaozi in the 10th century. History is littered with episodes of hyperinflation, but my favorite is that of revolutionary France. France's hyperinflation began as all hyperinflations do: the state printed too many assignats (pictured below), and they rapidly lost their purchasing power. French citizens sought alternative stores of value and mediums of exchange, as any intelligent person would. The French government, correctly perceiving this as a threat to its financial hegemony, reacted violently." Continue reading →

Continue ReadingInflation: Robbing You Since the 10th Century

Former jail keeps memory of Communist repression raw in Romania

"The extent of the suffering had largely been hidden. Stalinist purges in the former Soviet Union and Communist repression in Eastern Europe claimed millions of lives in the 20th century, according to historians. In Romania alone, more than 600,000 people were sentenced and jailed between 1945 and 1989 for political reasons. Stanca was one of them. 'In the jail, we suffered from hunger, we did not get any medical assistance, we were continuously humiliated,' he said. He was then sent to a labour camp to erect dikes along the Danube river. 'I think only the pyramids were built with such inhumane physical work,' he added." Continue reading →

Continue ReadingFormer jail keeps memory of Communist repression raw in Romania

‘Crack baby’ study ends with unexpected but clear result

"A social worker on TV predicted that a crack baby would grow up to 'have an IQ of perhaps 50.' A print article quoted a psychologist as saying 'crack was interfering with the central core of what it is to be human,' and yet another article predicted that crack babies were 'doomed to a life of uncertain suffering, of probable deviance, of permanent inferiority.' But the researchers consistently found no significant differences between the cocaine-exposed children and the controls. Drug use did not differ between the exposed and nonexposed participants as young adults." Continue reading →

Continue Reading‘Crack baby’ study ends with unexpected but clear result

Wind Energy Encounters Problems and Resistance in Germany

"Germany plans to build 60,000 new wind turbines -- in forests, in the foothills of the Alps and even in protected environmental areas. But local residents are up in arms, costs are skyrocketing and Germany's determination to phase out nuclear power is in danger. Even valuable tourist regions -- such as the Moselle valley, the Allgäu and the foothills of the Alps -- are to be sacrificed. On one side stand environmentalists and animal rights activists passionate about protecting the tranquility of nature. On the other are progressively minded champions of renewable energy and climate activists determined to secure the long-term survival of the planet." Continue reading →

Continue ReadingWind Energy Encounters Problems and Resistance in Germany

Greece May Need Billions More in Emergency EU Aid

"The Greek recovery may be facing yet another hurdle. According to German daily Süddeutsche Zeitung, the beleaguered country needs another massive influx of money if it is to avoid insolvency. The paper cites an unnamed official at the European Commission as saying that the "financial gap" could be as large as €10 billion. The news comes at a difficult time for Greece and its relations with Germany. German Finance Minister Wolfgang Schäuble is highly unpopular in Greece for his consistent insistence on austerity. And with German elections looming in September, it seems unlikely that additional aid money for Athens will be forthcoming anytime soon." Continue reading →

Continue ReadingGreece May Need Billions More in Emergency EU Aid

Bitcoin Downloads Surge in Argentina

"Since early June, Argentina’s share of global bitcoin software downloads has more than doubled, as the country edges towards what Barclays called 'a balance-of-payments crisis, in slow motion.' With bitcoin, Argentines can transfer their wealth to anywhere in the world instantly, outside of the domain of local authorities. Also, although bitcoin transactions are stored on a public ledger, it’s extremely difficult to determine the identities of the parties involved in the transactions. That anonymity could help Argentines avoid the scrutiny of the national tax agency, which has aggressively used enforcement actions to contain the public’s dollar purchases." Continue reading →

Continue ReadingBitcoin Downloads Surge in Argentina

101 Million Americans Received Food Aid Last Year

"Nearly one-third of Americans received government-funded food aid in 2012, according to a new report from the U.S. Department of Agriculture (USDA). There are roughly a dozen federal food assistance programs operating today. The USDA reports that 59 percent of households that participated in one of the four largest food assistance programs—food stamps, school breakfasts, school lunches, and WIC—end up receiving benefits from 'two or more programs.' This indicates significant duplication, 'providing participants total benefits in excess of 100 percent of daily nutritional needs.'" Continue reading →

Continue Reading101 Million Americans Received Food Aid Last Year

Detroit Declares Bankruptcy; Citizen Layoffs Begin

After decades of mismanagement, decay, and taxpayer flight led to one of the largest municipal bankruptcies in U.S. history Friday, city officials have begun circulating notices informing citizens that their continued residence would no longer be required. "Look, there's really no need to spell out what everyone knows: Detroiters are a net drain on the Detroit economy," said city emergency manager Kevyn Orr. "The city services they consume cost far in excess of what they can afford. The sooner we complete this restructuring, which will unfortunately require a significant reduction in headcount, the sooner we will be back on track as a city." Continue reading →

Continue ReadingDetroit Declares Bankruptcy; Citizen Layoffs Begin

Bill Bonner: Has gold bottomed out?

"Is there any reason to doubt? Any reason for worries? Any reason to stash a gold coin in your safe, just in case this reprise of credit-based money doesn’t pan out? It took the Soviets 70 years to realise that their experiment with primitive communism wouldn’t work. They tried to run a huge, modern nation as though it were a paleolithic tribe. It took Zimbabwe nearly 30 years to discover that it couldn’t cover its expenses by printing up its own credit-based money (though it didn’t begin running the presses at full speed until near the end). And how long did it take the Thousand-Year Reich to discover that ignoring the laws of civilised nations would be fatal? Only 12 years!" Continue reading →

Continue ReadingBill Bonner: Has gold bottomed out?

Lindsey Graham: Boycott the Soviets Again!

"In his hyperventilated desperation to punish Russia for not sending NSA leaker Edward Snowden back to face life in the American gulag system (another irony) he wants to go back to 1979 and boycott the Soviet Olympics! Out of any ammunition or even logic, Graham is all bluster: 'At the end of the day, if they grant this guy asylum, it’s a breach of the rule of law as we know it and is a slap in the face to the United States.' How dare Russia not follow our laws! What a slap in our face! More ironies drip from the Graham Plan, however, as the original US boycott was meant to embarrass the Soviet Union for its 1979 invasion of Afghanistan." Continue reading →

Continue ReadingLindsey Graham: Boycott the Soviets Again!