Since the 2008 bank bailouts, readers regularly ask, “what the hell is going on?” I’m not an economist, but I’ll try to explain things – and it isn’t pretty. A major plank in problem-solving is, “Look at the consequences of your decisions, don’t let your solutions cause bigger problems.” “You can choose to ignore reality; but you cannot ignore the […]
» Read more“Today Congress is constantly besieged by minority groups seeking benefits from the public treasury. Often these groups control enough votes in many Congressional districts to change the outcome of elections. And so, Congressmen find it difficult to persuade themselves not to give in to pressure groups. With no bad immediate consequence, it becomes expedient to accede to a spending demand. […]
» Read moreIt’s amazing how many childhood lessons apply in today’s complicated world. In grade school, the older boys told us only babies believe in Santa Claus. I told them my mother said, “As long as you believe, there is a Santa Claus.” They made fun of me. I sought the counsel of our neighbor, Sherwin. He was an A student, already […]
» Read moreMy grandfather was a WWII Army Sargent, an uneducated farmer with a Ph.D. in common sense. One of the lessons he preached; the longer you ignore a problem, the more it will grow. Fed Chairman Jerome Powell never met my grandfather. This Schiff Gold article confirms my grandfather’s thinking: (Emphasis mine) “During a webinar sponsored by the Economic Club of […]
» Read moreFriday the 13th, Atlanta Hartsfield Airport. I’ll soon be home for Christmas. It was a long year, 40+ weeks on the road; several two-week international trips. I was exhausted. We finally rolled down the runway, headed home. Suddenly the pilot reversed thrust, slamming on the breaks. I felt my seat belt straining. I heard a couple screams in the back. […]
» Read moreI recently asked, “Will the Next Bank Bailout Bankrupt America?”. The casino banks risky derivative bets are much higher than the last bailout a decade ago. The risks will come home to roost and they will expect taxpayers to bail them out again. I concluded: “Keep and increase your gold holdings. True reform would take us back to the gold […]
» Read moreIn 2008, I began investing in foreign currency. The Fed created trillions of dollars out of thin air, high inflation was sure to follow. With the help of friend Chuck Butler, I bought FDIC insured foreign currency Certificates of Deposit (CD) through Everbank. I also bought Exchange Traded Funds (ETF) and sent money offshore; investing in stocks and bonds denominated […]
» Read moreThe Keynesians and the Capitalists are heading for an economic showdown at the O.K. Corral. Keynesians believe the central government should control the economic levers affecting the masses. The economy can’t be entirely left up to the free market. Big government believers want the “leaders” determining the winners and losers. Controlling reallocation of wealth preserves the power of the political […]
» Read moreChicken Little proclaimed, “The Sky is Falling”, warning all who would listen. Wikipedia tells us, “…Chicken Little … is a folk tale … about a chicken who believes the world is coming to an end. The phrase ‘The sky is falling!’ … (is) … a common idiom indicating a hysterical or mistaken belief that disaster is imminent. Versions of the […]
» Read moreWhen it comes to currencies and inflation, my go to guru is Everbank’s Chuck Butler. Chuck writes the Daily Pfennig which is a must read. He keeps us up to date on the currency markets and his predictions are almost always spot on – generally well ahead of everyone else. Chuck also has a terrific sense of humor. He goes in […]
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