News Commentary

Europe’s ‘recovery’ is a conjuring trick

"Stock market indices in Portugal, France and Spain are up by about 30 per cent. That’s pretty impressive for economies running on empty but is completely outshone by Greece, where the main index is now 64 per cent higher than in June 2012. There’s a temptation to look at the direction of travel and conclude that, even for the eurozone’s weaklings, the point of maximum danger is history. This is what EU leaders and the European Central Bank would like us to believe. At the core of this 'recovery' is a bluff that has yet to be called. In August last year, the European Central Bank’s president, Mario Draghi, promised to do 'whatever it takes' to defend the euro." Continue reading →

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Bill Bonner: How America’s Working Stiffs Got Stiffed

"The Party leadership is not infallible. Neither in China nor in the US. In both countries, the feds – looking out for themselves – make policy decisions that are disastrous for others. We have no idea what calamity the central planners will cause in China. But we can take a fair guess of what they will do to America. Broadly, China’s feds build too many factories, malls and apartments. America’s feds encouraged the opposite error – borrowing and spending too much for consumption purposes. China’s real wages doubled in the last 10 years… after doubling in the previous 10 years. That is why the Chinese feel so much better off. They ARE much better off." Continue reading →

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The Debt Ceiling Battle Is Coming

"A working paper by economist James Hamilton, of UC San Diego, for the National Bureau of Economic Research indicates that the official federal debt, $16.7 trillion, is the tip of the iceberg. Currently, the feds are $86.8 trillion in debt, according to Hamilton. The Treasury department has been looting government pensions to hold the debt ceiling at bay. This can go on for another month or so until the battle in Congress begins again. Sunday, Treasury Secretary Jack Lew pre-empted the debt ceiling fight with a strike against the GOP on Meet the Press. Lew predictably blamed the debt ceiling for the S&P crash of summer 2011." Continue reading →

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Does the Internet Have a Libertarian Future? Interview With Paul Rosenberg

"The entire Internet is kind of being — it’s kind of a re-conquest that’s going on. It got out of control. They weren’t expecting it. The roots actually go back to Sputnik when they essentially scared the people in power in the United States. And they kind of let the smart guys loose — and that’s not exactly an absolutely correct explanation but it’s kind of true — and the Internet grew out of it. And nobody saw it coming outside of a couple sci-fi authors. Just a couple. And it got out of control and they’re essentially taking it back. So we have a lot of problems with that. In terms of avoiding the problems, it can definitely be done. Our company does it." Continue reading →

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Don’t Let Bitcoin Morph into Govcoin

"Recently, Govcoin has become a metaphor for alterations to the core bitcoin protocol that reduce its fungibility, irreversibility or privacy to conform to certain government specifications for an 'appropriate' digital currency. The Consumer Financial Protection Bureau has not yet confirmed to what extent the implementation of Regulation E by money transmitters will be applicable to licensed virtual currency providers. Also known as the Remittance Transfer Rule, compliance will be required by Oct. 28. It requires, among other items, prepayment disclosure, transaction receipts, and transaction cancellation within prescribed time limits." Continue reading →

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Ron Paul: A House Divided Over NSA Spying on Americans

"Taken together, the NSA's Maryland headquarters and its newly built enormous data center in Utah will be seven times larger than the Pentagon! Over the last week we have seen two significant prison-breaks, one in Iraq, where some 500 al-Qaeda members broke out of the infamous Abu Ghraib prison, which the US built, and another 1,000 escaped in a huge break in Benghazi, Libya – the city where the US Ambassador was killed by the rebels that the US government helped put in power. Did the US intelligence community, focused on listening to our phone calls, not see this real threat coming?" Continue reading →

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Bill Bonner: Goodbye, Motor City

"Motor City has been flattened. Now it’s being scrapped. The largest municipal bankruptcy in history. Detroit was once one of the richest…and most dynamic…cities in the world. And it was the centre of America’s most profitable industry: automobiles. German and Japanese automakers had the good fortune to be bombed out in World War II. But Detroit grew bigger…more prosperous…and full of zombies. Yes, dear reader, Detroit is a zombie story. Since 1971, almost all big stories have a zombie angle. Because the credit-based monetary system that Richard Nixon put us in is a perfect habitat for zombies." Continue reading →

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Wall Street: The Next Fed Chief Should Keep the Presses Running

"'Monetary policy has little scope to stimulate the economy,' Summers suggested in September 2008, 'given how low interest rates already are and the problems in the financial system.' Since then, the Fed has bought $2.3 trillion in Treasury and mortgage bonds. It also increased the money supply to unprecedented levels. In contrast, the other front-runner, Federal Reserve vice chair Janet Yellen, said back in March she would not taper anytime soon. CNBC’s poll of Wall Street analysts indicated they believed Yellen would better manage a financial crisis. Translation: She is more likely to keep the presses hot." Continue reading →

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How the Media Has Distorted a Tragedy

"As a fiction, Zimmerman the white supremacist rivals Obama the Kenyan-born commie Muslim. Obama is right that our racial history—a history in which, a few decades ago, young black males in much of the country really could be murdered at will for looking at a white person the wrong way—gave Trayvon Martin’s death a powerful and painful resonance for black Americans. That made it all the more incumbent on the media to be scrupulously truthful and responsible in their coverage. At this, they have spectacularly failed, with deplorable consequences." Continue reading →

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The Manning Show Trial: These Teachable Moments

"I’m shocked — shocked! — that Colonel Denise Lind, the military judge who ruled in February that Bradley Manning could be tried on various charges even after being held prior to arraignment for more than five times the absolute longest time specified in the US Armed Forces’ 'speedy trial' rules, has now also ruled that Manning can be convicted of aiding an enemy that does not exist. Yes, you read that right: There’s only an 'enemy' to aid, in any legal sense, if the United States is at war, a state created by a congressional declaration. There’s been no such declaration since World War II. Lind had only one legal duty as judge in this case: To dismiss all charges." Continue reading →

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