The writing is on the wall for anyone who cares to take a look. The world’s central bankers are going to print until their currencies break. It’s the only way out of this global system of unsustainable debt. History tells us so, human psychology tells us so, and if you pay attention to the financial
The pure fantasy involved in Paul Krugman’s great scheme to save the economy jumped out in one of his recent blogs where he stated: “It’s true that printing money isn’t at all inflationary under current conditions – that is, with the economy depressed and interest rates up against the zero lower bound. But eventually these
There are certain major trends, be it in finance or governance, that only go in one direction, until they can’t. For anyone paying attention to the behind the headlines maneuvering of the central banks and their indebted governments, 2012 was a year of great clarity. There is simply no political will anywhere in the world
Hyperinflation could happen overnight is how Paul Craig Roberts, former Assistant Secretary of the Treasury in the Reagan administration, describes a future when the rest of the world no longer sees the dollar as a viable store of value. “All of a sudden, people walk into Walmart, as usual, and they think they’ve walked into
Uncharted Territory, LRC podcast #331 Bill Haynes and Lew Rockwell discuss why the US has avoided hyperinflation and why the dollar may long be the world’s reserve currency, despite the Fed’s promises of unlimited money creation. The Fed, as Lew notes, came into existence after major bankers met on Jekyll Island, Georgia, and formulated
Quantitative Easing – to the unwashed – has a benign ring to it. Say aloud, “Quantitative Easing.” Not frightening at all, right? Nothing like “Default,” which conjures up some really scary potential outcomes. Actually, to many investors who comprehend the nature of the problems the world faces, quantitative easing provides emotional relief. After all, haven’t
Memoirs of Extraordinary Popular Delusions and the Madness of Crowds is the classic text from 1841 by Charles Mackay that addresses the mass psychology that enables financial bubbles and their inevitable collapses. The entire book is available here as a free pdf in the Essential Readings section of the site. Grant Williams follows this theme
While several heads of Federal Reserve Banks have called for more quantitative easing, Boston’s Fed Head Eric Rosengren has upped the ante and is calling for “open-ended” quantitative easing of a “substantial magnitude.” No joke. Apparently, Rosengren has bought the John Law/John Maynard Keynes position that money is merely a medium of exchange and that
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.
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.