Saturday, September 24th, 2016 MST

Category: Federal Finances

Krugman’s recipe for economic prosperity: Print more food stamps.

If you are ever in need of an example of economic fallacy in print, Paul Krugman’s blog is a great place to start. His recent offering on the economic benefits of food stamps is no exception: “Indeed, estimates from the consulting firm Moody’s Analytics suggest that each dollar spent on food stamps in a depressed economy raises

Grant Williams Part 1: Why are equity markets rising in the face of falling fundamentals?

Grant Williams, author of the newsletter Things That Make You Go Hmm, recently presented at the 66th Annual CFA Conference in Singapore. The entire presentation is available above, but in this post we’re going to deal with less than ten minutes of his presentation. Although Mr. Williams addresses stock investors, his material should be of

Bernanke: Pedal to the metal

Seems whatever financial media you go to, the discussions are about speculation that Bernanke and his cohorts at the Fed’s Federal Open Market Committee (FOMC) are considering cutting back on quantitative easing, which is now running at $85 billion a month.  ($45 billion in Treasuries, $40 billion in mortgage debt.) The media’s chic question is

It’s debt ceiling time again

On Friday, Treasury Secretary Jacob Lew sent a letter to House Speaker John Boehner, informing him that the Treasury will begin taking “extraordinary measures” in order to keep the Federal debt below the legal limit. Such measures could include redeeming current investments in the retirement accounts of civil service workers and would keep things running

The beginning of the end of the Japanese bond market and its impact on gold.

The following is an excellent presentation by Christine Hughes of Otterwood Capital Management on the beginning of the end of the Japanese bond market and how it has negatively impacted gold in the short term. On April 4, 2013 the Bank of Japan announced their “2-2-2-2” policy in which they will attempt to create 2%

Keynesian economics debunked in one graph

The entire purpose of modern economics is to obfuscate the truth; to convince the masses to support policies that are contrary to their own interests. In the early twentieth century, economists in the United States realized the opportunity to transform their lot in life from that of dreary academicians to well paid pseudo-celebrities by becoming

Don’t get any crazy ideas. Only the dollar is money.

Neil Irwin over at the Washington Post recently set about reminding the unwashed masses that, only the dollar is money, in his piece “Bitcoin is ludicrous, but it tells us something important about the nature of money.” He starts us out with his “givens”. “We can all agree that the dollar bills in my wallet

Don’t fear the robots, fear the Fed.

It’s really quite amazing to see the economic fallacies that are trotted out in support of the central banking/fiat money meme. This recent one attempts to blame rising wealth inequality and economic stagnation on the proliferation of robots in manufacturing and automation in general: The alarm over machines posing a real risk to jobs has

Austerity is coming. Excessive government spending guarantees it.

The evidence continues to mount that government spending kills the real economy. In the game of wealth redistribution, every dollar the government takes from the private sector is one less dollar spent by the private sector. For every job that the government creates, a job is lost in the productive economy. At best you could

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