The Congressional Budget Office (CBO) recently changed its projection for fiscal year ending September 30 to show a deficit of $506 billion. Despite the national debt now being north of $17.6 TRILLION and having doubled since Obama took office, statist economists, columnists and apologists immediately praised the $506 billion number. The LA Times; “. .
Jim Sinclair recently predicted $3,200 – $3,500 gold by 2020 and “emancipated gold” hitting $50,000. Because of Sinclair having made some really accurate calls in the past, his prediction caused quite a stir in the gold community. Even Ron Paul commented and gave reasoning why Sinclair’s predication is not preposterous.
When I entered the silver bullion business in 1973, few people knew what the Federal Reserve System was and what it did. Still fewer knew it was a central bank, and with little knowledge of what a central bank did. Those that knew the Fed existed knew that it expanded the nation’s money supply, which
In Austrian Economics circles there is currently a debate whether Bitcoin – the most widespread of the new crypto-currencies – is a legitimate currency or just a complex scam. The debate has become some somewhat reminiscent of the inflation vs. deflation arguments of a couple of years ago with each side digging their heels in
Despite the buzz about Janet Yellen being selected to head the Fed, so far the gold and silver markets are unimpressed. Over the months leading us to Obama’s selection, there was much speculation that a Yellen appointment would fillip gold and silver prices, but that was not the case. Prices were expected to rise because
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
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 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%
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
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