Category Archives: Economy and Debt

October 7, 2021

Clown World: D.C. Elites Consider Minting ‘Trillion-Dollar Coin’ to Game Debt Limit

Some politicians think they’ve found a silver bullet for the impasse over the debt limit, except the bullet is made of platinum: Mint a $1 trillion coin, token of all tokens, and use it to flood the treasury with cash and drive Republicans crazy.

Even its serious proponents — who are not that many — call it a gimmick. They say it is an oddball way out of an oddball accounting problem that will have severe consequences to average people’s pocketbooks and the economy if it is not worked out in coming days.

But despite all the jokes about who should go on the face of the coin — Chuck E. Cheese? Donald Trump, to tempt or taunt the GOP? — there’s scholarship behind it, too. However improbable, it is conceivable the government could turn $1 trillion into a coin of the realm without lawmakers having a say.

How is this possible when the treasury secretary can’t simply print money to pay public debts? It’s because a quirky law from more than 20 years ago seems to allow the administration to mint coins of any denomination without congressional approval as long as they’re platinum.


Complete text linked here.

September 28, 2021

Evergrande’s Fall Shows How Xi Has Created a China Crisis

The developer’s collapse isn’t leading to global contagion, but China’s looming economic disaster might.

A major mistake of the Cold War was the tendency of Western observers to overestimate the Soviet Union. I have often wondered if the same mistake is being repeated with the People’s Republic of China. Then again, for every article over the last 10 years that predicted China’s economy would overtake that of the U.S., there were at least two prophesying a “China crisis.”

“The endgame of Chinese communist rule has now begun,” wrote David Shambaugh in 2015. Wisely, he added: “Its demise is likely to be protracted.” That same year, Jim Chanos of Kynikos Associates warned, “We’re getting inexorably to a tipping point in China.”

Last week began with yet another China tipping point. The impending collapse of the giant property developer China Evergrande Group, we were warned, could be China’s “Lehman Moment.” For 24 hours, global stock markets retreated by a couple of percentage points. By Tuesday morning, however, the story appeared to be over. The jitters subsided and investors got back to parsing the utterances of U.S. Federal Reserve Chair Jay Powell to make sure that nothing he said was surprising.


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September 27, 2021

The Biggest Federal Reserve Scandal by Ron Paul

Inflation has always benefited the well-connected elites who receive the Fed’s newly created money before the new money causes widespread price increases. The true motivation behind Fed policies was revealed by former Fed official Andrew Huszar in 2013. Huszar, writing for the Wall Street Journal, confirmed that quantitative easing kept stock prices high, instead of helping Americans struggling with the aftereffects of the 2008 meltdown.

Following revelations that Federal Reserve officials made trades in financial assets while the Fed was taking extraordinary efforts to “stimulate” the economy, Federal Reserve Chairman Jerome Powell ordered a review of the Fed’s ethics rules. While these trades appear problematic, they pale in comparison to the biggest Fed scandal — the Fed’s impoverishment of ordinary Americans, enrichment of the elites, and facilitation of government debt and deficits.

The depression induced by coronavirus, though really caused by so-called public health actions government took in response, was the official reason for the Fed’s increased asset purchases last year. However, the Fed actually started ramping up its money creating activities in September of 2019, when it began pouring billions a day into the repo markets, which banks use to make short-term loans to each other, in order to keep repo market interest rates low.


Complete text linked here.

June 11, 2021

Deutsche Bank warns of global ‘time bomb’ coming due to rising inflation (Video)

In an out-of-consensus forecast, Deutsche Bank is warning of a potential crisis coming from inflation. “The effects could be devastating, particularly for the most vulnerable in society,” the firm’s economists said.

Inflation may look like a problem that will go away, but is more likely to persist and lead to a crisis in the years ahead, according to a warning from Deutsche Bank economists.

In a forecast that is well outside the consensus from policymakers and Wall Street, Deutsche issued a dire warning that focusing on stimulus while dismissing inflation fears will prove to be a mistake if not in the near term then in 2023 and beyond.

The analysis especially points the finger at the Federal Reserve and its new framework in which it will tolerate higher inflation for the sake of a full and inclusive recovery. The firm contends that the Fed’s intention not to tighten policy until inflation shows a sustained rise will have dire impacts.


Complete text linked here.

April 14, 2021

Jim Rogers “This Is The Worst I’ve Seen In My Lifetime” (Video)

Jim Rogers is an American investor and financial commentator based in Singapore. Rogers is the Chairman of Beeland Interests, Inc. He was the co-founder of the Quantum Fund and was also the creator of the Rogers International Commodities Index. Jim Rogers is mostly known for speaking about investing in the stock market, gold, and macroeconomics. In this Jim Rogers interview, he shares his opinions on why the next crash will be much worst, and how investors can protect themselves from it.

April 13, 2021

Illegal fishing by Chinese vessels is destroying South Pacific island economies, local wildlife

China’s massive fishing fleets have caused a strain on worldwide fishing stocks, in addition to destroying local wildlife, and rendering once vibrant habitats completely lifeless. 

Chinese fishing boats have been labelled responsible for the destruction of the economies of islands in the South Pacific, due to their illegal practice of “illegal, unregulated fishing.” 

Radio Free Asia reports that two former U.S. officials say that unregulated fishing by Chinese vessels has become commonplace in the waters off the coast of American Samoa, Guam and even as far east as Hawaii, all of which are American territories. 

The Chinese fishing actions have impacted the local economies so badly that a tuna cannery on American Samoa, which is one of the island’s largest employers, was forced to suspend its operations due to a lack of fish. 


Complete text linked here.

March 31, 2021

Dancing with the dead: Venezuelans turn to desperate measures to survive (Video) (2018)

Venezuela is facing the worst economic crisis in its history. For those who live in the capital Caracas, daily life is about survival. Public services are barely able to function, the welfare state nothing but a distant memory. Violent crime is on the rise, while prisons are full. From the hospital to the morgue and the cemetery, FRANCE 24’s reporters show you the harsh reality of life in Caracas, where extreme poverty means people are turning to desperate measures to get by.

March 22, 2021

Lenin’s New Economic Policy: When the Soviets Admitted Socialism Doesn’t Work

What was Vladimir Lenin’s remedy for his unfolding socialist catastrophe early in 1921? Free markets.

A century ago, the Mother Ship of Socialism—the Soviet Union—was teetering on the precipice. The Poles had just vanquished the hopes of dictator Vladimir Lenin to sweep across Europe. Under the bludgeon of Marxist central planning, the economy had collapsed to a fraction of its pre-war dimensions. The country was seething in discontent. Insurrection seemed imminent. Indeed, the month of March 1921 had begun with hungry Soviet soldiers and sailors mounting the Kronstadt Rebellion against the Bolshevik regime.

What was Lenin’s remedy for his unfolding socialist catastrophe? It wasn’t more socialism, at least for the moment. That would be like chasing a glass of tainted water with a gallon of Clorox. Desperate to reverse the consequences of socialism, Lenin turned to their only known antidote—capitalism.

Sunday marked the 100th anniversary of the start of Lenin’s New Economic Policy (NEP). In a stunning about-face on March 21, 1921, the NEP began undoing the previous four years. Expropriation of businesses and the nationalization of industries stopped. Lenin proclaimed a partial restoration of, in his own words, “a free market and capitalism.” Even state-owned firms would seek to operate on a “profit” basis. Individuals could own small enterprises again. Market prices would be permitted in place of state directives.


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January 31, 2021

Harry Dent: Stocks to crash 40% by April and won’t rebound for decades, here’s why (Pt. 1/2) – Video

Watch part 2 of this interview on gold: The cyclical bull market for equities is over; after December, stocks will begin a secular multi-year decline, starting with a 40% correction by April, said Harry Dent, founder of HS Dent. “If we see another new low in the stock market, I predict we are not going to see new highs on the Dow, S&P, NASDAQ, biotech, you pick anything…you’re not going to see new highs on anything for decades,” Dent said. “You didn’t see new highs after 1929 for 24 years.”

January 30, 2021

Why Grantham Says the Next Crash Will Rival 1929, 2000 (Video)

Jeremy Grantham, co-founder and chief investment strategist of Boston’s GMO, believes U.S. stocks have become an epic bubble and will burst in a collapse rivaling the crashes of 1929 and 2000. In this interview, he explains why, discusses the futility of Federal Reserve policy, criticizes the state of American capitalism, and shares his thoughts on gold, Bitcoin, emerging markets and climate change. He spoke exclusively to Erik Schatzker on Bloomberg’s “Front Row.”