Middle Class Dismissed

Bill Bonner: Why do we have this credit-based money?

"Because governments are essentially a way for the insiders (who control the police power of the state) to take power and money from the outsiders. Cicero once described the two groups as the 'Optimates' on one side and the 'Populares' on the other. You might also think of them as the elite and the hoi polloi...or the privileged classes and the riff-raff. The critical difference between the two is that the elites...the optimates...the insiders...have the government in their pocket. The others do not. Bullion-based money is a natural limitation on the ability of the elite to rob the rest of the population." Continue reading →

Continue ReadingBill Bonner: Why do we have this credit-based money?

Unions: Obamacare Will ‘Destroy The Very Health and Wellbeing’ of Workers

"The Affordable Care Act has a new, high profile set of dissenters: Unions. The leaders of three major U.S. unions, including the highly influential Teamsters, have sent a scathing letter to Democratic leaders in Congress, warning that unless changes are made, President Obama’s health care reform plan will 'destroy the foundation of the 40 hour work week that is the backbone of the American middle class.' If that’s not bad enough, the Affordable Care Act, if not modified, will 'destroy the very health and wellbeing of our members along with millions of other hardworking Americans,' the letter says." Continue reading →

Continue ReadingUnions: Obamacare Will ‘Destroy The Very Health and Wellbeing’ of Workers

American Dream Slipping as Homeownership at 18-Year Low

"Housing industry and consumer groups are pressing lawmakers to make the American Dream more inclusive by ensuring new mortgage standards designed to prevent another crash are flexible enough that more families can benefit from the recovery. Regulators are close to proposing a softened version of a rule requiring banks to keep a stake in risky mortgages they securitize. Lawmakers currently shaping housing finance are seeking to reduce the government’s role in keeping rates affordable for riskier borrowers while ensuring homeownership is within reach of minorities and first-time buyers who could be needed to sustain the housing recovery." Continue reading →

Continue ReadingAmerican Dream Slipping as Homeownership at 18-Year Low

Bill Bonner: Price does not tell you all you need to know

"Economists measure quantity. Alas, life is not all quantifiable. What really matters is quality. Right now, the Fed tries to control prices. But prices are only a part of the picture. When it comes to art, architecture, music, puppies and women - it's what strikes the senses that matters...what you see, hear, and feel. But when it comes to your money, what you see is not exactly what you get. Price tells you something. But it doesn't tell you all you need to know. Why? We're so glad you asked..." Continue reading →

Continue ReadingBill Bonner: Price does not tell you all you need to know

Obama’s Auto Industry Bailouts in 2009: Taxpayers Lose, Big Time

"Despite surges in revenue and a catalog of new vehicles produced by the U.S. auto industry, taxpayers are still suffering from the 2009 bailouts, as General Motors (GM) would have to peddle their stock for $95.51 per share for taxpayers to break even, according to a government watchdog report published Wednesday. Even with a 25-percent spike in the price this year, that’s still well over twice what shares are selling for today, with the price currently lingering around $37 per share — meaning there’s little faith that taxpayers will break even on the nearly $50-billion GM bailout." Continue reading →

Continue ReadingObama’s Auto Industry Bailouts in 2009: Taxpayers Lose, Big Time

The “I Thought Bonds Were Safe” Fallacy…

"Now remember, Bernanke didn’t change rates, he just implied that rates may increase in the future. The market, however, took that rhetoric and ran. Accordingly, the bond market fell. For instance, from its high around May 1st the 30-year treasury market has fallen some 9%. Nine….freaking….percent. That’s a huge move for a seemingly steady and professional market like bonds. It’s also a devastating move to risk-averse bond investors (like my dad.) All said, safety seekers got burned. And you can thank the 'Ber-nank.'" Continue reading →

Continue ReadingThe “I Thought Bonds Were Safe” Fallacy…

Copper theft ‘like an epidemic’ sweeping US

"An electrical power station in Wichita, Kan., or half a dozen middle-class homes in Morris Township, N.J. Even on a Utah highway construction site, crooks managed to abscond with six miles of copper wire. Those are just a handful of recent targets across the U.S. in the $1 billion business of copper theft. The five leading states for the thefts are Ohio, Texas, Georgia, California and Illinois, the NICB said. The FBI says copper theft is 'threatening U.S. critical infrastructure by targeting electrical substations, cellular towers, telephone land lines, railroads, water wells, construction sites, and vacant homes for lucrative profits.'" Continue reading →

Continue ReadingCopper theft ‘like an epidemic’ sweeping US

Overpicking threatens Greek herbs

"Forestry officials on the Greek island of Crete have slapped a five-year ban on the collection of a variety of wild herbs snipped to near-extinction, the state-run ANA agency said. The forestry department of Hania, one of the island’s main towns, placed restrictions on picking sage, marjoram, oregano and sideritis, better known as Cretan mountain tea, in protected areas. Special permission is required for commercial collection, and an allowance of up to 500 grammes is made 'for personal use'. And Cretan dittany, a therapeutic plant prized since antiquity that is exclusive to the island, is off the table altogether." Continue reading →

Continue ReadingOverpicking threatens Greek herbs

Japan now reconsidering sales-tax hike

"Japan's Prime Minister Shinzo Abe may ditch a long-planned hike in the national sales tax, a senior official said Sunday, according to Kyodo News. Abe had intended to help shore up Japan's finances by raising the 5% national consumption tax to 10% in two steps, slated for April 2014 and October 2015. But Kyodo quoted Chief Cabinet Secretary Yoshihide Suga as saying in a television interview that Abe would reconsider the issue 'after revised data are released in September on preliminary figures for April-June gross domestic product, and before a fall extraordinary Diet session.'" Continue reading →

Continue ReadingJapan now reconsidering sales-tax hike

Inflation is rotten to the core: Regardless of what Fed says, prices are rising

"You might be just a trifle curious about how the use of the core rate of inflation (leaving out food and energy) came into being. The core rate of inflation was the brainstorm of Arthur F. Burns, chairman of the Federal Reserve during the early 1970s. The object of this exercise was to take people’s eyes off what was really happening to prices so that the Fed of that era could run an ultra-easy monetary policy. The professorial Burns managed to convince the Congress, the government’s statistical agencies, the press and his fellow economists that excluding food and energy was the right way to look at prices." Continue reading →

Continue ReadingInflation is rotten to the core: Regardless of what Fed says, prices are rising