I’m always amazed at the number of people I meet who believe that Washington DC will still get its spending under control, that it’s just a matter of getting the right person, or the right party, into office and disaster will be averted. Or, that when we finally hit a real crisis, politicians will do the right thing – which is, incidentally, the complete opposite of what they’ve been doing for the last 100 years. Those are long odds if you ask me.
John Williams, president of the Fed’s San Francisco bank, is the most recent Fed Board member to call for further easing of Fed policy. He joins Dennis Lockhart, head of the Fed’s Atlanta branch, who last called for more quantitative easing. Both men cited the dismal jobs outlook, and both are voting members of the
Recently, on CNBC’s Squawk Box, Paul Krugman ran into some surprisingly strong skepticism about his calls for more government spending. It was clear from the onset that no one was buying into the Keynesian philosophy that infinite government spending will save us all. It wasn’t easy, but the interviewers finally managed to tie him down as to how much spending is too much.
Keynesianism has been successful beyond Keynes’ wildest dreams. Not that Keynesianism has produced a viable economic system but that belief in Keynesianism so universally accepted among Establishment economists. But, the root evils of Keynesianism–fiat money and easy credit–are proving the undoing of the world’s economy.
Fridays, Eric King interviews Dan Norcini of Jim Sinclair’s JSMineset.com and me for KingWorldNews.com’s Weekly Metals Wrap. Generally, Dan talks about the technical aspects of the market, and I comment on the action in the physicals market. My remarks are short and usually casual. In last week’s comments, I noted how the atmosphere in the
Paul Craig Roberts is the former Assistant Treasury Secretary under Reagan. He is also a man who is not very popular in Washington. The following interview is as good a reason as any why that is.
It’s almost cognitive dissonance the way the financial markets go about their business. Everyone knows that the United States is bankrupt. Everyone knows that US Treasuries are a bubble. Yet, it’s the first place everyone runs to when things start to get messy.
Although the title, Red and Blue and Broke All Over, suggests that the book is another expose of America’s dire financial state of affairs, that is not the case. Red and Blue inextricably links our prosperity to our liberties and warns that if “solutions” to our existing financial woes and the “War on Terrorism” put still more controls on us, our prosperity will decline as our liberties vanish.
A while back I caught a Peter Schiff interview on one of the mainstream financial channels where he was recommending gold. The interviewer commented that for every investment thesis there existed a scenario in which the thesis would fail. He asked, what was that scenario for gold? Mr. Schiff replied that it would require massive spending cuts out of Washington DC and a balanced budget.
Anyone who has been paying attention to the precious metals world over the last couple of years is well aware of the circumstantial evidence of price manipulation. None of which is particularly surprising, as all the way up through the gold pool of the late 1960s, it has been the open policy of the US and UK governments to control the dollar price of gold.