News Commentary

The S&P’s Tragic Rise Will Continue

"Equities resumed their run to higher highs and higher lows. This rise has a tragic undertone for its substance is damaging the economy. One must make hay while the sun shines. Let's examine what to expect and how to position yourself for maximum gains and protection in the mid to long-term. Turbulence in the short term will pass for the markets but socio-economic stresses require that one's holding be placed in the strongest castles. Let us then consider a three-part investing strategy that should enable most people to ride the rip tides of these markets and crazed policies and anchor themselves to companies adapted to the new America, and world that is taking shape." Continue reading →

Continue ReadingThe S&P’s Tragic Rise Will Continue

Might India Confiscate the Gold of the Temples?

"If the financial woes of the Government worsen, as seems likely, the temptation will increase for them to tap into Temple resources at some point. Who the actual owners of the resources may be, is likely to become more blurred along the way. We are heading into a confiscatory era—a time when banks and governments reserve the right to go beyond the old method of taxation and to actually pillage the purse of the public. This has begun with bank accounts and pension funds in some countries, and, as the concept becomes a trend, it will take on many forms. Confiscation of temple, church, or synagogue funds may therefore soon be on the table in a variety of countries." Continue reading →

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Bill Bonner: The Fed Chief America Deserves

"If it were that easy to create real wealth, of course, everybody would be doing it. Real wealth – like everything else that is precious – takes time, patience, and forbearance. You don’t get it by using cheap tricks and economic gimmickry. Instead, you have to pay for it. That is, you have to give something up in the present to gain more prosperity in the future. The feds’ programs promise the opposite: Americans will get something now… and pay (dearly) later. Eventually – sooner or later – Mr. Market will come down hard on investors’ heads, like a murderer armed with a claw hammer." Continue reading →

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More on Default

"I fully concede, a default of any kind would be harmful to individuals and institutions holding Treasury bonds in their portfolios. It would cause investors and analysts to rethink the role that T-bills play in the financial system and could cause some painful adjustments. But why should these be the only costs under consideration? What about the cost to the US taxpayer from raising the revenues needed to pay the interest on T-bills? What about the costs to everyone holding assets denominated in depreciating dollars — depreciation that will continue as long as the Fed maintains its policy of monetizing the debt?" Continue reading →

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Ron Paul: New Fed Boss Same as the Old Boss

"The news that Janet Yellen was nominated to become the next Chairman of the Board of Governors of the Federal Reserve System was greeted with joy by financial markets and the financial press. Wall Street saw Yellen's nomination as a harbinger of continued easy money. Contrast this with the hand-wringing that took place when Larry Summers' name was still in the running. Pundits worried that Summers would be too cautious, too hawkish on inflation, or too close to big banks. The reality is that there wouldn't have been a dime's worth of difference between Yellen's and Summers' monetary policy. No matter who is at the top, the conduct of monetary policy will be largely unchanged." Continue reading →

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Bill Bonner: Watch the Parking Meters

"'What does Cristina [Cristina Fernández de Kirchner, Argentina’s president] get paid for? Lying to us. Stealing our money. Generally making a mess of the economy. But at least she puts on a good show. You turn on the TV, and there she is – with more lies. The amazing thing is that everybody knows they are lies. We all know the cost of living is going up three times faster than she admits. We all know the country is headed for bankruptcy. We all know the central bank is printing up funny money to pay her bills. But nobody cares about that. She’s just doing her job. Just like you and me. My job is to drive a taxi. Her job is to lie to me.'" Continue reading →

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Thanks, Bloomberg, for More Nonsense About Gold

"Central bankers from all over the world meet regularly in Switzerland, at the Bank for International Settlements, to 'coordinate' monetary policy. They sit in a big room in front of a fancy table and discuss what they are going to do. Four men control roughly 75% of the entire world money supply: Zhou Xiaochuan, People’s Bank of China, Mario Draghi, European Central Bank, Haruhiko Kuroda, Bank of Japan and Ben Bernanke, US Federal Reserve. Does anyone seriously believe that these four individuals do not operate a common monetary policy? Does anyone believe that any of these individuals have the latitude to go their own way in defiance of the others?" Continue reading →

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ObamaCare Is Just a Stepping Stone to Nationalized Health Care

"Many people roll their eyes at 'those idiots in Washington!' as if these obvious outcomes are somehow a surprise. No, the people in Washington have trained economists on their staffs. They understand incentives, even though their rhetoric suggests that they don’t. Over the coming years, as the delivery of US healthcare suffers and citizens become justifiably outraged, they will be led to demand greater and greater government involvement to thwart the 'greedy' insurance companies and 'overpriced' hospitals. This is part of the plan, as some glib proponents of ObamaCare have let slip." Continue reading →

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Obamacare’s ‘Cool Calculator: Work Disincentives Like Never Before

"Look at what happens once a single person who is 50 or older hits annual earnings of $45,961. At that point, what remains of those wonderful “tax credits” goes up in smoke. For a 50 year-old single person, dollar number 45,961 causes their annual exchange premium (i.e., 'tax') to increase from $4,366 to $5,390. That’s because what Kaiser calls Obamacare’s 'government tax credit subsidy' (they’re also having a hard time with the language) goes from $1,024 to zero. For a 64 year old, a 'tax credit subsidy' of $4,688 gets zeroed out. The marginal tax rate on dollar number 45,961 for that person is a whopping 468,800%." Continue reading →

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