by George Washington
Preface: We like to debunk myths held by both the left and the right.
For example, we have repeatedly argued that government debt and deficits do matter. Over a certain level, they form a large drag on the economy. That pisses off our liberal readers.
But we keep pointing out that – instead of imposing draconian austerity – it would be much better for the economy to stop handouts to the big banks, stop getting into [...]
After Spain, it’s Italy’s turn in the Eurocrisis spotlight. The immediate cause for this spotlight is a two notch downgrade of the Italian sovereign by Moody’s, a rating agency from A3 to Baa2, just two notches above the dreaded junk status. Despite the downgrade, Italy is not Spain and the fact that the downgrade had a rather limited impact on the pricing of Italian bonds issued in its immediate aftermath reflects some [...]
By Paul B. Farrell, MarketWatch
SAN LUIS OBISPO, Calif. (MarketWatch)—Election wars are masking the fiscal cliff that America is destined to drop off in early 2013, warns the Congressional Budget Office. History tells us our politicians will slowly drive America off the fiscal cliff and into a mid-1930s-style sinkhole. Why? Because no matter who’s elected, our dysfunctional government will continue to be driven by secretive super-PAC billionaires obsessed about either [...]
(Reuters) – It is unclear whether the Eurogroup will be able to decide on an aid package for Spain’s banks at its meeting next Monday as it is still awaiting an expert report on the situation, a German finance ministry spokesman said on Wednesday.
The signature of the Memorandum of Understanding (MoU) regarding a 100 billion euro European bailout for Spanish banks was initially scheduled for July 9, when euro zone [...]
More selling of newsletters and books than accurate analysis by Mr. Schiff. Surprise, surprise.
The United States Is Not Greece
By Stephen J. Rose and William T. Dickens
Peter Schiff in The Real Crash and others see the U.S. as having the same problems as Greece and that what we see now in Greece is just a prelude to much larger problems in the United States. This is a false analogy that misrepresents [...]
March 4, 2012
Judge Napolitano testifies of Treasury Secretary and Federal Reserve-insider Timothy Geither’s arrest in this 4-minute corporate news show. American Kabuki lists the daily-increasing bank resignations. David Wilcock and Benjamin Fulford explain and document history and deceit at the top of US and global finance, leading to current and imminent arrests.
What does this mean?
Anyone with intellectual integrity and moral courage can affirm that the Federal Reserve system is guilty of financial fraud [...]
2012 marks a fourth year of trillion-plus deficits for the government. | AP Photo
The government faces a fourth year of trillion-plus deficits in 2012, according to new projections released Tuesday—numbers which also show little relief in the future unless Washington comes to grips with needed changes in its tax and spending policies.
Like Aunt Cassandra coming down from the attic, the Congressional Budget Office steps squarely into the 2012 campaign season with the 147-page report [...]
Today, I was appointed by President Obama to serve as the first Director of the Consumer Financial Protection Bureau. I am honored by this opportunity to continue my work on behalf of consumers. And I am energized by the responsibilities and challenges facing the Bureau.
The importance of this day has less to do with me personally and much more to do with you – and the millions of individuals and [...]
By Neil Unmack The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Euro zone leaders may be trying to tweak the Greek debt swap to impose marginally deeper losses on private creditors than agreed in July. That wouldn’t help Greece much, but it would stagger the pain for banks, and Greece’s public creditors.
Greece’s creditors originally agreed to a 21 percent haircut on their bonds, [...]
In an unbylined update of the latest developments in the budget-tax-spending-debt ceiling discussions in Washington this morning, the Associated Press committed several blunders in attempting to explain what’s going on and how we got to where we are. First and foremost was its list identifying “contributors” to the $8.5 trillion growth in the national debt since 2001.
Here’s the AP’s you-can’t make-this-up, Comedy Central-worthy [...]
by Mike Krieger of KAM LP
Right now, thanks in large part to Federal Reserve policy, Uncle Sam can borrow at an average cost of just 2.5 percent. The average borrowing cost over the last three decades was 5.7 percent. Our debt is now $14 trillion and scheduled to grow to $25 trillion by the end of the decade. If interest rates normalize over that [...]
by Charles Hugh Smith from Of Two Minds
“Growing Your Way Out of Debt” Is A Fantasy
Add rising interest payments and higher taxes to declining assets and incomes and you don’t get “growth,” you get insolvency.
The Status Quo consensus is that “kicking the can down the road” a.k.a. “extend and pretend” will work because “Greece, Spain, Ireland et al. are going to “grow their way out of [...]
From John Campbell’s website:
Treasury Bonds: I learned something last week. I learned that fully 40% of the over $9 trillion in Treasury debt currently outstanding to the public has a maturity of 3 years or less. Put another way, it means that we are rapidly approaching $4 trillion in U.S. debt that matures by 2014 or sooner. As I write this, the yield (interest rate [...]
From Contrary Investor
We’re Just Gonna Inflate Our Way Out If It!…Oh really?Â I don’t think so, Scooter.Â In a recent discussion we mentioned the fact that lately former Fed member Larry Lindsey has been talking up the idea of a potential fiscal trap for the US.Â To be honest, we believe this idea has already played itself out in Japan and day by day is [...]
I recently interviewed John Williams (coming soon) and I really think his CPI numbers are far more accurate. Â He’s currently sitting around 5% with his alternate assessment of inflation, and I suppose a doubling from there to the levels of the 70′s is not out of the question.
However, a big portion of the 70′s-style inflated revenues was due to the wage portion of the [...]
After late last week Gerald Connolly, D-Va, proposed an extension to the BAB program through 2012, resulting in yet another risk bounce in the one asset class that has seen a major walloping in early January, not to mention record outflows (and a corresponding inflow into US equities), it seems that the GOP is not very excited about the prospect of further state [...]
By Jeanne Sahadi, senior writerFebruary 2, 2011: 5:11 AM ET
NEW YORK (CNNMoney) — Interest payments on the national debt could total $5.5 trillion over the next decade, or about 79% of the new debt estimated to accrue between 2012 and 2021.
And that’s the optimistic scenario.
“Interest payments on the debt are poised to skyrocket over the next decade,” the nonpartisan Congressional Budget Office wrote in its most [...]
Nouriel Roubini talks with the Wall Street Journalâ€™s Simon Constable in the video below about both the developed economy â€“ emerging economy divide that has developed as well as the challenges ahead for the US economy.Â His view on both core issues dovetails well with my own.
First, on the emerging economy front, Roubini sees the monetary policy stimulus as exacerbating the already dynamic growth [...]
by Red Neck Repugnicant
our debt, and how that debt affects our ability to increase rates to fight inflation. Many arguments are made that increasing rates will simply bury the government in interest costs, therebyÂ making the fight against inflation exceptionally difficult, or impossible.
I think most people can agree that raising rates fights inflation.Â But many people argue that raising rates is impossible when our debt and [...]
In my honest opinion, 2013 is going to make 2008 make 1929 look like 1973 …
~ VF ~
p.s. I’ve just done the math with the Option Arm value’s quoted in the film, and the extra interest costs amount to $137, 880 more than a standard practice mortgage of old.
That’s One-Hundred And Thirty-Seven Thousand, Eight-Hundred and Eighty Dollar’s, if you like the figure written in words [...]
1) Emerging Debt Losing Money First Time Since ’08 as Russia Sinks
“May 6 (Bloomberg) — Russia may have been the last developing nation to tap record-low bond yields as the spreading Greek financial crisis makes emerging-market bonds unprofitable for the first time since 2008.”
“$753 Billion Maturing
The retreat is raising interest costs as governments and companies in emerging markets plan to borrow at least $39 billion on [...]