Stephen Leeb Comments on Fiat Currency Race to the Bottom

While the Fed destroys the currency we all depend on, a federal bureaucracy keeps Idaho in the poor house by tying up Silver Valley resources which would otherwise be in boom mode. Will our state ever fight for its citizens in this war on free enterprise waged by the Federal Government?
My Blog: kingworldnews.com/kingworldnews/KWN_DailyWeb/Entri....html
http://chumly.com/n/ba1bb6

Germany Ready to Bail on Bailouts?

Like climbers on a cliff, the PIGS are dangling from the rope. Germany is the one climber with a good grip and is beginning to consider cutting the financial rope that binds their collective fate.
Bundesbank questions legality of EU bail-outs - Telegraph: www.telegraph.co.uk/finance/financialcrisis/871678....html
http://chumly.com/n/b6d6d0

Post from greshambouma at CHUMLY

This Currency, as we manage it, is a wonderful machine. It performs its Office when we issue it; it pays and clothes Troops, and provides Victuals and Ammunition; and when we are obliged to issue a Quantity excessive, it pays itself off by Depreciation. - Benjamin Franklin
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Stimulus Spending Trap

Governments worldwide wage a war on healthy economies by their stimulus programs and replace them with economies dependent on chronic public borrowing and spending. Like an addict, you need increasing amounts to maintain the old high, and eventually you run out of suppliers.
Stimulus Spending a Fatal Addiction: www.absolutewealth.com/stimulus-spending-a-fatal-a...ction
http://chumly.com/n/b6ce5c

A Glimpse Into the FED

The title to this article says it all. Socialism rewards the politically connected, and constantly robs those who are not.
Wall Street Aristocracy Got $1.2 Trillion in Secret Loans at Lowest Rates - Bloomberg: www.bloomberg.com/news/2011-08-21/wall-street-aris....html
http://chumly.com/n/b67924

What About Rick Perry and the FED

I don't know whether Perry is just being populist, or whether he has real conviction, but this article takes us back to when we began this scheme and our financial journalists argued for something more disciplined than crony capitalism built on a fraudulent monetary policy.
Waiting for De Gaulle - August 19, 2011 - The New York Sun: www.nysun.com/editorials/waiting-for-de-gaulle/874...87456
http://chumly.com/n/b5855f

Doug Casey Discusses (Global) Economic Storm

Doug Casey: We Are Exiting the Eye of the Storm - Casey Research: www.caseyresearch.com/cwc/doug-casey-we-are-exitin...storm
http://chumly.com/n/b55090

Obama's Balance

For most of America, a balanced approach to finances means you don’t spend more than you bring in. In other words your expenses don’t exceed your revenue. I am all in favor of a balanced approach in DC as well. But in their twisted world a balanced approach doesn’t mean anything close to what we would call balance. For them balance means placing more burdens on the private sector just as the weight of government is crushing the life out of it. It means trusting the government with more of our increasingly hard earned wages, not in spite of its incompetence, but because of its incompetence. It demands to be rewarded with more of our earnings, not in spite of the fact that it has wasted and mismanaged everything we have given it so far, but because it has wasted and mismanaged far, far more than we have already given it. In the working sector, businesses and people that prove themselves untrustworthy, wasteful, and full of fraud are disciplined—soon finding themselves out of business (unless government bails them out), but in the land of ever-growing bureaucracies those attributes apparently merit a raise.
http://chumly.com/n/b3e314

Excellent Article by Alasdair Macleod

Alasdair explains the debt trap we are in, monetary policy and other aspects of the perfect financial storm coming at us. It is imperative that we understand how government is responsible for the multi-year financial crisis we are in and how and why every rescue attempt compounds the problems.
2011.08.06 GATA Speech.pdf (application/pdf Object): www.financeandeconomics.org/Articles archive/2011.08.06 GATA Speech.pdf
http://chumly.com/n/b29a95

The Dollar and S&P

Apparently there is a journalist in America that both understands the dollar fiasco and doesn't support it. This short editorial says a lot.
Journal Inquirer > Archives > Chris Powell > It's the dollar, not S&P; and all must have prizes: www.journalinquirer.com/articles/2011/08/11/chris_...1.txt
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The Social State of Britain

Socialism matures into moral and financial bankruptcy, which this article details some of. I don't think we are that far behind in either facet. While liberalism pays homage to democracy, it is really a liberal elite that build their brave new world.
British rioters the spawn of a bankrupt ruling elite | The Australian: www.theaustralian.com.au/news/opinion/british-riot...40970
http://chumly.com/n/b14ce7

Dollar Instability Shows up at Wall Street

When a country sacrifices its currency (through uncontrolled printing) to sustain uncontrolled spending, ultimately commerce itself is threatened. Note also in this article that Europe is announcing more bailouts for sovereign debt. It is working out so well, why not keep it up?
US debt downgrade slams stocks- MSN Money: money.msn.com/market-news/post.aspx?post=956ae416-...4e714
http://chumly.com/n/afb3c9

Post from greshambouma at CHUMLY

What everyone needs to remember about DC: Tomorrow's cuts are today's joke.
http://chumly.com/n/af5092

US Loses AAA Credit Rating by S&P

For the first time since 1941 the US has been downgraded. And it turns out the ceiling isn't the problem, the deficits/overspending are the problem. And DC is standing in a deep dark debt hole, looking at the bottom, and saying this "ceiling" is a problem. Paul Volcker rescued the dollar in the late '70s by raising the Federal funds rate to a high of 20%! It stopped inflation and restored confidence in the dollar. The same would not be possible today. Last year we spent about 20% of our tax revenue on interest, with rates at 3-4%. If interest rates were five times as high it would take 100% of our tax revenue to pay the interest. So when the rates begin to head up just remember that the kind of intervention we took last time round isn't even an option.
S&P Cuts U.S. Rating for First Time on Deficit Reduction Pact - Bloomberg: www.bloomberg.com/news/2011-08-06/u-s-credit-ratin....html
http://chumly.com/n/af3cde

Japan Makes Move in Race to the Bottom

Japan, anticipating another round of QE from the US, made moves to dramatically weaken the Yen. This is how the dollar retains any strength--by the others weakening in comparison. The result is you see real price inflation. Europe was desperate to keep Greece from leaving the Euro because if Greece did, it would print money and buy its own debt, and they considered that a default. We have done it several times now, and our QE programs dwarf Greece's debt. Not only do our politicians rob us, they rob the world!
Kitco - Commentaries - Chuck Butler: www.kitco.com/ind/Butler/aug042011.html
http://chumly.com/n/af15c0