"Our Constitution is in actual operation; everything appears to promise that it will last; but nothing is certain but death and taxes." ~Benj. Franklin
A good word for Deflation
March 30th, 2015
The Irascible Fred Reed sees Secession on the Horizon.
Mr. Reed will surely generate a computer full of email with his comments on the influx of illegals to the United States and the possibility of secession of some states. He quotes the New York Times: "California is challenging the historic status of American citizenship with measures to permit noncitizens to sit on juries...and to open the practice of law even to those here illegally. It is the leading edge of a national trend that includes granting drivers’ licenses and in-state tuition to illegal immigrants in some states ….”
He's quite right. For instance - despite the fact that marijuana possession is a
to passerby) "Ma'am, a survey question: Are you concerned
about the financial
(Passerby) "Heavens, no! Posterity has never done a damned thing for ME!"
(To 2nd passerby) "Sir, what about the financial burdens society places on posterity?"
"Nobody should put a burden on prosperity, especially
(Reporter) "No, we're talking about POSTERITY."
(Man) "Oh. Umm....what's a posterity?
"So, how did citizens of the present acquire permission to run up bills to satisfy their current wants and send the tab far into the future for today's children and the unborn to pay? Individually, we can not do that. One cannot, for instance, borrow large amounts of money and force his or her descendants to be personally liable for that debt. Unpaid debt will be subtracted from the assets of one's estate, which will have a negative effect on the proceeds going to immediate heirs, but one's personal debt does not linger beyond the probate court. If the estate can't pay it the creditors must absorb it." COMMITMENT TO POSTERITY
staff curmudgeon has more than twenty direct descendants whose future
concern him greatly. He wrote the above lament in 2006 and has
watched the economic burden the present generation is dumping on the
future grow to stupendous levels.
While news presenters are occupied with whether or not there is
discrimination against homesexuals and whether or not Iran will develop
a nuclear bomb, a debt implosion casts its shadow over unsuspecting
We may be headed for implosion, not explosion.
"Central banks’ multi-trillion-dollar monetary injections, zero-interest-rate policies, negative interest rates, negative bond yields, and the colossal scale of cheap money that artificially pumped up equity markets and fueled the investment capital/private equity group/hedge fund gambling binge, are unprecedented in the History of the World. And, when the Greatest Speculative Bubble on Earth bursts, it will be the shock heard and felt throughout the world — for generations." ~Gerald Celente
do commentators like Gerald Celente expect some cataclysmic event to
upset the economic applecart? Probably because 50 years of
sleight-of-hand by politicians have led the once mighty USA into a
money trap that is showing clear signs of snapping shut.
Consider: 2015 is the 50th anniversary of the introduction of
base-metal coins into circulation in the U.S. In 1965 common silver
coins vanished from circulation in only a matter of months. The
Public Debt was $317 billion. The federal government was
habitually running budget deficits.
Consider: By 1971 foreign nations were redeeming dollars for gold
to such an extent President Nixon was forced to stop the outflow of
precious metals that summer and the dollar was officially afloat as a
fiat currency - unbacked by anything for trust and hope.
Consider: The federal spending spree pushed borrowing to
unprecedented heights. The Treasury Department reported the
public had topped ONE TRILLION DOLLARS in 1982.
Consider: By the time President Obama took office the accumulated public debt had reached $11.3 trillion! In February, 2014, Congress raised the debt ceiling to $17.2 trillion. (Borrowing now exceeds $18 trillion and Congress is overdue in raising the official ceiling.)
The grossly outsized debt is so staggering that no one wants to talk
about it. Running deficits of about a trillion dollars a year is
a now entrenched habit of the administration and Congress and it's a
horrid burden that must be shouldered by future generations....likely
as a sharply reduced standard of living.
Bottom line: The present generations are living high on the hog and sending the bill to their kids. They'll be angry when they catch on.
We admire silver. . .not only for its beauty and its historical role as money, but also for its medicinal properties.
Some years ago we were bitten on the leg by a large dog and the wound would not heal. The family doctor applied all manner of compounds but the wound persisted for weeks. Not only was it not healing it seemed to be worsening.
Finally, he sent us off to a wound specialist. After closely examining the tissue the wound expert determined that a treatment of silver nitrate was required. And it worked splendidly. The open wound closed quickly.
We already knew that silver had the ability to kill bad bugs. In an emergency, for instance, merely running questionable water through a bag of silver coins two or three times will destroy fungi and other dangerous organisms. We also use coloidial silver soap which contains traces of pure silver. It's a bit pricey and skeptics say it doesn't do anything a bar of cheap soap won't do. We think the jury is still out on that.
end of the 1st quarter of 2015
"2015 was supposed to be the year in which all the strands came
together to create a real recovery, an environment in which rate hikes
would be a certainty. But anyone who looks past the rosy rhetoric can
see that the economy is currently in one of its weakest periods in
years. The first few months of 2015 have seen more missed
economic forecasts than any other comparable period since the depths of
the Great Recession. Industrial production, retail sales, housing
starts, just to name a few, are all continually
weakening according to data from Reuters Polls, 3/18/15. In fact,
the Atlanta Fed’s much talked about “GDPNow” data set, which was
supposed to provide a fresh real-time look at the economy, is showing
that the economy is growing at a paltry .3% annualized rate. While many
people are blaming the result on the winter weather, much as they did
last year, it is worthwhile to note that ice and snow in winter is not
a new phenomenon." The
Old Razzle Dazzle
Schiff is usually lumped in with other doom-and-gloomers, but it can't
be denied that recovery from the Great Recession has been tediously
slow. Looming over the entire scene is a phenomenal level of debt
plus the Federal Reserve's long-running policy of creating abundant
supplies of noney. However, most of the fresh cash does not make
it to Main Street, USA. It's driving up prices in Wall Street
The world's monetary uncertainty must be resolved before the election rhetoric gets into full gear in the summer of 2016. Politicians are uncomfortable debating monetary uncertainties. They're not familiar with the fundamentals nor is the electorate, except when it comes to pitting the poor against the rich. The age-old notion of the deserving poor and the evil rich is the basis of socialist ideas. This is why the Robin Hood method of governance is so popular.
Modern Democracy is not what the Founders
had in mind.
The reason Democracy turns out to be a flop is that it's based on the
idea of majority rule. The will of the majority of voters is
generally believed to be "fair" even if they have been misled by
of dollars worth of carefully contrived and highly persuasive
The Founding Fathers knew all about the danger of democracy
and chose to set up a republic, which lessened the probability of the
masses being pressed down by a monarchy or dictatorship.
Nearly half of American households don't save any of their money, according to Deutsche Bank's Torsten Sløk.
The study was not citing employment figures. It was reporting on
the savings rate
of American households. Data show that living paycheck to
paycheck is more prevalent than generally believed. That's akin
to skating on thin ice!
Speech; The Barrier to Meaningful Communication
If the purpose of human speech is to convey information and ideas why won't public schools spend a little time teaching children how to speak articulately?
"Oh, no you don't!" say the guardians of various cultural habits of speech. "My children are perfectly understood by their family and friends and we don't want them changed."
Does it occur to anyone that America would not tolerate a news anchor
who spoke with the nearly unintelligible Ebonics accent or with the
heavy accent of Spanish, Russian, or Asian tongues?
Have you ever thought of all the things a voice can do? It can
amuse, arouse, beseech, cares, comfort, convince, coax define,
describe, enlighten, inspire, persuade, sell, soothe, and teach.
But it can do very few of these things if speech is masked by mumbling
and heavy accents.
This is not a call to impose "white speech" on minorities. It's a method of opening doors of opportunity to persons of any verbal background who want to be understood by larger audiences.
Maybe our guess is wrong. Perhaps the Federal Reserve WON'T raise the Federal Funds rate in June. Mr. Rex Nutting's arguments are persuasive.
"The caution comes from much weaker-than-expected growth in the first three months of the year. Perhaps it’s just the transitory effects of bad weather, the stronger dollar, and the collapse in investment in the oil patch. But maybe the headwinds will strengthen.
"Before it raises rates, the Fed wants to be certain that the improvement in the unemployment rate will continue, and that the inflation rate will head back toward its 2% goal.
"The big takeaway for the markets from this meeting is that the Fed will need more time to be sure. That means the first rate hike won’t come until September, most likely. It could be later." THE FED TODAY.Nutting may be right. After all, the Fed has set no date for an increase in the near zero basic rate. Observers predicting a rise in June are merely guessing. If price inflation doesn't get traction and reach 2 percent or higher, and if unemployment ticks up once more, the Fed must keep its foot on the inflation accelerator and hope its policies will lead to the desired result.
Since the future cannot be known for certain it makes sense to tread cautiously through the weeks and months to come. The Fed is having trouble achieving its goals and that's sorrisome for anyone who is trying to hang on to his/her nest egg.
SEARCHING FOR THE UNVARNISHED TRUTH.
"The expression "unvarnished truth" appeared in a column by one of the gazillion commentators on the Internet and it caused me to wonder where it came from. Who coined the phrase? Emerson? Ruskin? Shelley? I looked it up.
"The credit goes to Euripides, the Greek tragic dramatist who lived from 485 to 405 B.C. Reference to truth being plain and unvarnished appears in his 411 B.C. play The Phoenissae."
"He was aptly expressing the unvarnished truth when he observed that wealth has great power. It did then and does now, except it was measured differently more than 2,400 years ago. Today we count paper promises as actual wealth and list countless IOUs as part of our net wealth. They hadn't stumbled into that neat trick in Euripides's day. Actual wealth and anticipated wealth were two different things." UNVARNISHED TRUTH
Our staff curmudgeon penned this in 2007 in an effort to show that not much has changed in more than two millennia. He further quotes Euripides as writing "There are three classes of citizens.,The first are the rich, who are indolent yet always crave more. The second are the poor, who have nothing, hate the rich, and are easily led by demagogues. Between the two extremes lie those who make the state secure and uphold the laws." (420 B.C.)