sound money

Former IMF Chief Economist: Sadly, Too Big to Fail Is Not Over

"There are three issues: the powers of the Federal Reserve, the mandate of the Federal Deposit Insurance Corporation and the vulnerability of taxpayers when one or more large complex financial institutions fail. We have at least five such companies in the United States, all of which are intensely cross-border in their operations (in order of size, JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley). The biggest and most leveraged financial companies in the United States today are all now bank-holding companies, with access to the discount window at the Fed, via their commercial banking subsidiaries." Continue reading →

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The ‘new GDP’ methodology: What you need to know

"The Commerce Department has made changes to how it calculates gross domestic product, designed to have the data better reflect the so-called knowledge economy. The U.S. government adjusted data all the way back to 1929, and other countries have or are about to make similar changes to their data. At the same time, the government also went back and revised data for the past five years.What’s the upshot? The rate of growth hasn’t changed all that much, though there are big shifts in a few time periods. But the level of output is higher — $559.8 billion larger, with $526 billion of that amount due to definitional changes." Continue reading →

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Four False Assumptions That Can Kill Your Portfolio

"It’s been so long since interest rates had a real 'up' cycle that Wall Street — and many average investors — have forgotten what that even looks like. Four toxic interest-rate assumptions have the potential to kill your portfolio: First, Wall Street thinks the Federal Reserve can control all interest rates with a few words or the wave of a monetary wand. Second, Wall Street thinks that when interest rates go up, it’s always a slow and gentle climb. Third, Wall Street thinks that rising interest rates are solely a consequence of an improving economy and nothing else. And fourth, Wall Street thinks that because of that, the impact will be benign." Continue reading →

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Madonna and Lady Gaga accused of breaking Russian visa rules

"Russian officials are considering prosecution against Lady Gaga and Madonna after discovering they entered the country under incorrect paperwork. As any Moscow visitor will know, Russian immigration can be extremely complicated. But Gaga and Madonna's mistakes weren't just discovered by accident: prosecutors launched their investigation only after being contacted by one of the singers' most outspoken enemies. The man in question was Vitaly Milonov, who serves in St Petersburg's municipal legislature and authored St Petersburg's law banning gay 'propaganda'." Continue reading →

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Russian Orthodox Church: Snowden deals blow to ‘global electronic prison camp’

"Archpriest Vsevolod Chaplin has praised Russian authorities for not caving in to pressure from abroad, saying granting Snowden asylum would help prevent the establishment of a ‘global electronic prison camp’. 'It is encouraging news that Russia is demonstrating its independence in this case as it has in many others, despite the pressure' said the head of the Holy Synod’s Department for Relations between the Church and Society. Vsevolod Chaplin added that the Snowden saga has been broadly discussed both on the domestic and international level, with Russia’s position potentially bolstering its image as a country upholding 'the true freedom of ideals.'" Continue reading →

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When The NSA Comes To Town

"The main reason the NSA chose Utah was because of its cheap electricity. It also has abundant water, immunity from most types of natural disasters, and abundant open land, factors that have driven other companies, including Twitter, eBay, Overstock, Microsoft, and Adobe, to place their data centers in the state. But there is something deeper than cheap electricity — which the NSA and politicians courting the agency repeatedly called Utah’s 'patriotism.' The state is staunchly Republican and conservative. It is also known for unusually regressive laws regarding internet freedom." Continue reading →

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When Cops Don’t Need a Warrant To Crash Through Your Door

"We know we're secure in our 'persons, houses, papers, and effects' unless the cops demonstrate probable cause to a judge and get a warrant. Except... Except when they don't. The fact of the matter is that police have a lot of leeway to bust your door down and take a look around if they fear that waiting for a warrant could lead to loss of evidence or danger to people. Or lead to something, anyway. That end run around the Fourth Amendment is called 'exigent circumstances,' and nobody really seems to be sure where it starts and stops. Except for the police. They know it when they see it." Continue reading →

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Former Cops Speak Out About Police Militarization

"In the book, I interview lots of older and retired police officers, many of them with SWAT experience. I also cite other police chiefs and sheriffs over the years who have raised concerns about militarization. The divide among police on this issue isn't political. Instead, the divide appears to be more generational. Older and retired cops don't seem to like where policing is headed. Younger cops, who are nudging policing in a more militaristic direction, are naturally fine with it." Continue reading →

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U.S. gives seal of approval to Egypt’s new leaders

"Supporters of deposed Egyptian president Mohamed Mursi prepared for confrontation on Friday, and the United States said Egypt’s military had been 'restoring democracy' when it drove him from office. Thousands were gathered in two Muslim Brotherhood camps in Cairo, defying warnings from the new army-backed government to abandon their protest or face action from security forces. Mursi, an Islamist who became Egypt’s first freely-elected president in June 2011, had faced weeks of street demonstrations against his rule. The turmoil has left Egypt more polarized than at any time since U.S.-backed autocrat Hosni Mubarak was toppled in 2011." Continue reading →

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Al-Qaeda Backers Found With U.S. Contracts in Afghanistan

"Supporters of the Taliban and al-Qaeda in Afghanistan have been getting U.S. military contracts, and American officials are citing 'due process rights' as a reason not to cancel the agreements, according to an independent agency monitoring spending. The U.S. Army Suspension and Debarment Office has declined to act in 43 such cases, John Sopko, the Special Inspector General for Afghanistan Reconstruction, said today. 'I am deeply troubled that the U.S. military can pursue, attack, and even kill terrorists and their supporters, but that some in the U.S. government believe we cannot prevent these same people from receiving a government contract,' Sopko said." Continue reading →

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