statism

Bill Bonner: Can a credit system last in the modern world?

"When you have a system based on credit rather than bullion deals are never completely done. Instead, everything depends on the good faith and good judgment of counterparties - including everybody's Number One counterparty: the US government. Its bills, notes, and bonds are the foundation of the money system. But they are nothing more than promises. A credit system cannot last in the modern world. Because as the volume of credits rise the creditworthiness of the issuers declines. The more they owe the less able they are to pay. As time goes by, the web of credit spins out in all directions, entangling not just the present, but the future too." Continue reading →

Continue ReadingBill Bonner: Can a credit system last in the modern world?

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

Indians urged to recycle stashed gold

"The All India Gem & Jewellery Trade Federation, representing about 300 000 gold manufacturers and retailers, was asking members to offer incentives to lure holders to recycle their old jewellery, chairman Haresh Soni said yesterday. Using more scrap and hoarded metal may further reduce Indian imports of gold, which are forecast to tumble 22 percent in the second half. Jewellers have suspended sales of coins and bars to retail buyers until the current account deficit has stabilised. On Tuesday Finance Minister Palaniappan Chidambaram appealed to Indians to moderate their demand for the metal, while ruling out a complete ban on imports." Continue reading →

Continue ReadingIndians urged to recycle stashed gold

Gold exports in June slump 70% in India

"According to Vipul Shah, chairman of the Gems and Jewellery Export Promotion Council, 'Exports declined drastically in June as there was a shortage of raw material for jewellery manufacturing. Our main demand is that we should be provided gold on easy terms.' He added that if the current situation prevailed, it would be disastrous for the entire industry and bring in large scale unemployment. According to M Ahamed of the Kerala Jewellery Federation, exporters had initially gained from the rupee depreciation in the country, as the value of their exports in rupee terms had gone up. However, that gain has now petered off, he added." Continue reading →

Continue ReadingGold exports in June slump 70% in India

If Edward Snowden Had Read This Book …

"In most countries, extradition is not automatic. A hearing is usually required, with the person subject to extradition given the opportunity to argue his or her case. Some countries, such as Brazil, almost never allow extradition. Many refuse to return a person they deem to be wanted for 'political' offenses. Usually, an extradition request seeks persons facing criminal prosecution or an already convicted escapee, but there are other grounds for such official demands. Generally, tax offenses have not been extraditable. However, fraud per se is an extraditable offense, so a government that wants to pursue a tax case claims 'tax fraud.'" Continue reading →

Continue ReadingIf Edward Snowden Had Read This Book …

And the Natural Result of “Planned Obsolescence” is… (Drumroll)… Bankruptcy!

"The strike lasted 44 days, until GM gave in. It marked the rise of the UAW and the slippery slope of capitulation that would kill the automaker’s competitiveness. GM started to decentralize its production process so it could never be hijacked again. Detroit’s population became decentralized along with it. As people left, the tax base shrunk. To keep revenue up, taxes were raised on things that couldn’t be moved out of the city limits, like property. Because of high property taxes, people stopped improving buildings. Eventually, it wasn’t worth it to pay the property taxes. So people just left for greener pastures in taxpayer-friendly jurisdictions." Continue reading →

Continue ReadingAnd the Natural Result of “Planned Obsolescence” is… (Drumroll)… Bankruptcy!

Family of Egypt’s Morsi threaten legal action over ‘abduction’

"The family of Egypt’s ousted Islamist president, Mohamed Mursi, said on Monday it would take legal action against the army for abducting him. Mursi has been held at an undisclosed military facility since the army deposed him on July 3 and suspended the constitution in the wake of huge street protests against his one-year rule. The army says Mursi is being held for his own safety. Mursi’s supporters are maintaining a round-the-clock vigil in a Cairo suburb, now in its third week. They say they will stay put until Mursi is returned to office." Continue reading →

Continue ReadingFamily of Egypt’s Morsi threaten legal action over ‘abduction’

A CEO’s-Eye View of ObamaCare

"The ACA could actually cause the number of our covered employees to decrease, particularly in the first year. The penalty for declining coverage will be low compared with the cost of coverage; and employees will know that if they happen to get sick, they can get insurance after that. So the economically rational decision for young people, like our crew employees, is to pay the penalty and forego the insurance. Despite what the government may believe, our employees are smart enough to figure this out. For insurers, it's simple math: Premiums collected must exceed claims paid. If too few young healthy people enroll, insurers will raise premiums on those who do." Continue reading →

Continue ReadingA CEO’s-Eye View of ObamaCare

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

Man persecuted over raw milk resurrects olive oil from thousand-year-old olive trees

"Six months ago, California 'raw milk man' James Stewart was sitting in a jail cell in Los Angeles county, shivering from hypothermia, his body wrapped in chains from hands to ankles. He had been raided at gunpoint by the LA County Sheriff's office under orders from the FDA, then labeled a 'terrorist' and literally subjected to extreme torture in the L.A. jail system. His crime? He was distributing fresh, wholesome milk to moms and families. Over the last year, he has risen from the dirt that the state tried to pound his face into and now commands what may soon become one of the most celebrated specialty olive oil suppliers in North America: Oliflix." Continue reading →

Continue ReadingMan persecuted over raw milk resurrects olive oil from thousand-year-old olive trees