Investing in US Treasuries is a losing investment. Many investors seem to be ignoring the fact that inflation for 2011 came in at 3% for 2011. Given 3% is the norm, the 10 year bond and under have negative real … Continue reading
Category Archives: Uncategorized
Next FOMC meeting Jan. 24-25, Possible QE3
Gallery
The next FOMC decision will come next Wednesday, January 25. The Fed statement is released 12:30p, the interest-rate forecasts, quarterly estimates for economic growth, unemployment, and inflation at 2:00p, followed by a press conference with Bernanke at 2:15. With the … Continue reading
Gingrich Hypocritically Talks of Gold Standard
Gallery
As can be expected from a politician, Newt Gingrich is all talk and no action when it comes to returning the US to a gold standard. First of all, Gingrich starts out buy saying that he wants a “commission on … Continue reading
Checking on Ron Paul Predictions “5 to 10 Years” Later
Gallery
Almost ten years ago, Ron Paul addressed the House and gave alarmingly accurate predictions of the future state of the union. Although he said there was no timeline on his predictions, he said to look at them in five to … Continue reading
Jan
17
Highest January Gas Prices Ever
Little did Bernanke know (or maybe he knew but instead chose to lie), his “transitory” inflation is not transitory at all. Gas Prices have never been this high in January. And since formal QE3 is just around the corner (I say formal for those that don’t count operation twist in conjunction with ZIRP as QE3 because some think ZIRP and operation twist happen by magic, not by the Fed printing money to buy bonds), gas prices will really soar during peak driving this summer.
Per AP -
AAA said both gasoline and crude oil prices are at historic highs for this time of year. It said the national average for regular gas rose four cents a gallon last week to $3.39 — up 11 cents so far this month.
http://www.newschannel5.com/story/16527086/high-january-gas-prices-could-signal-dicey-year
Choosing Free Markets or Central Planning After Dollar Collapse
Gallery
No matter the next President of the United States, Mr. President 2012 will preside over a bond market collapse, resulting in a collapse in government spending (consider when the US bond market and currency collapses, the US will no longer be able … Continue reading
Jan
14
Ron Paul on Fundamentals of Free Markets and Sound Money must be Regained
- The fundamentals of the GOP claims they believe in cutting spending, balancing budgets, and sound money. But we never followed through.
- Ron Paul receives twice the money from active military personal than all of the other republican candidates put together.
- Those jumping on Mitt Romney for Baines either don’t understand economics or are demo gauging the issue to make a political point. Restructuring is part of capitalism.
- The Fed follows the wrong idea on economics. They don’t look at the business cycle being related to the central planning of money, otherwise they’d have to indict themselves.
- The Austrian Economists are able to explain how the central planning of money causes bubbles.
- The Fed has hundreds of economists, but they still failed to see the housing problems because they don’t get the job unless they say what the Fed wants them to say.
Jan
13
Peter Schiff on Why the US is in Worse Shape than Europe
- US is benefiting from Europe’s currency troubles because of the flight out of Euros is propping up the dollar.
- Raising the debt ceiling will exacerbate problems.
- What good is a ceiling if we raise I every time we get there?
- We need to be reducing debt.
- America’s $15T of debt is the tip of the iceberg.
- Trade deficit of almost $60B in Novermber shows we are living beyond means, consuming too much, not producing enough, not saving and borrowing too much money.
- US is more dependent on cheap financing than Italy or France and when our rates go up, we’ve got a bigger problem to deal with.
- Same people that didn’t understand that housing prices were about to fall don’t understand that interest rates will rise and create a problem worse than 2008.
Jan
13
Real Housing Prices Set to Collapse
Housing is set to fall 70%-80% considering hyperinflation will remove the easy credit because the printing press will be rendered worthless, the Fed will be ineffective in backing mortgages, and American’s will become much poorer because hyperinflation is economically devastating. In order to save on housing maintenance and utility costs, there will be more people per household. In addition, many will altogether leave the country, which will further expose the overbuilding of housing that cheap money and government backing of mortgages has created.
Now is the time to take the equity out of your home if you would like to keep that equity. The best way to save is with silver. Gold is a great option too. If you’re looking to save in USD, nickels now have a melt value of more than $.05.
Jan
12
67% Risk Managers Expect Student Loan Delinquencies to Rise
Mark Green, the CEO of FICO, talks student loans.
- 67% of risk managers think that student loans will rise, while only 47% say mortgage delinquencies will rise.
- $750B of student loans outstanding in US., which is more student loans than credit card debt.
- Bankruptcy will not absolve you from student loans.
Two ares of disagreement with Mark is that student loans have actually crossed the $1T mark. Also, Mark ssays that auto loans are not a concern when he should be very concerned about auto loans.