Liberty Forged

the State has no money of its own, so it has no power of its own. ` Nock

Posts Tagged ‘mortgage’

Get to know the economy with this list of articles.

Posted by Jesse on September 29, 2008

The Recession Reader

Instead of looking to the mainstream for answers to this crisis, why not look to those who saw it coming?

The Bailout Reader

It’s never been more important to spread a sound view of money and banking, not only as a protection against the fallacies of “stabilization” and “reflation” but also as way to see what kind of reforms are essential now.

Posted in antiwar, Constitution, Current Events, economy, Education, free market, Politics, republican, Rights, Ron Paul | Tagged: , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

Obama, Generation x-er

Posted by Jesse on March 12, 2008

What do Iraq, bubbles, Bush, Bernanke, and Obama all have in common?
Posted by Michael S. Rozeff at March 12, 2008 03:50 PM

Over-confidence. Xenakis, who wrote Generational Dynamics, in 2004 wrote this: “Ten years ago, all the major senior business, government and education leaders were risk-averse people from the generation that grew up during the Great Depression and World War II. Today, all the major leaders are from the risk-seeking, arrogant, hubristic, narcissistic, self-assured ‘baby boomer generation.'”

His hypothesis applies to the Iraq War instigators. And they are so hubristic they’d start a war with Iran.

It applies to Bush II, born in 1946, who thinks he can remake the world.

It applies to the credit bubble, which is a manifestation in part of lowered risk aversion. Those contracting big debts, both in the business world and out, didn’t think about the risks or factor them in to pricing. It applied earlier to the internet bubble.

These are history. My main point is that Bernanke, born in 1953, is in this group. He thinks that he can stem another Great Depression, if not with helicopter money, then with some other gimmick. He thinks he can manipulate the stock market and stem its decline. He cannot do either of these things. He’s overconfident.

Obama, born in 1961, is a Generation X-er. He’s just as overconfident as the Baby Boomers and will be just as activist, as he is not separated that far in time from them. But his agenda is a different set of “problems”, namely, social problems.

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Ah…there it is. So people want to unite the country. But how can you do that when we are at war and the economy is going down the tubes?

Let’s see, redeploy troops…., spend…, spend…, spend…,

Think it will work?
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With regards to military reform, read this post by Lind.
[here’s an excerpt]
“Events on Wall Street suggest that the day when the money flow stops may be approaching. Despite President Hoover’s assurance that “Prosperity is just around the corner,” the American economy is in free-fall. After decades of frivolity, that economy now amounts to little more than a pyramid of financial pyramids, all requiring a constant inflow of borrowed money. The inflow is endangered by the developing Panic of ’08, where the junk mortgage crisis and the collapse of the housing market combine to dry up lending. What happens to pyramid schemes when money stops flowing in at the bottom? Maybe a recession; maybe a depression. That’s why pyramid schemes are illegal, unless the government runs them.

A tanking economy and world credit markets tighter than Scrooge’s sphincter will require large cuts in federal spending. That will include the Pentagon. If a new administration were to turn to the military reformers and ask us how to cut defense spending while still securing the country, what would we advise?”

Posted in *Take Action, afghanistan, antiwar, barack obama, books, business, congress, Constitution, Current Events, democrat, economy, Education, election 2008, family, free market, Gold, government, healthcare, hillary clinton, history, international, iran, iraq, John McCain, Libertarian, life, mccain, media, middle east, military, news, obama, old right, Politics, republican, Ron Paul, senate, society, technology, thoughts, writing | Tagged: , , , , , , , , , | 7 Comments »

Bubble economy

Posted by Jesse on February 17, 2008

A little history and a little prophecy
February 2006 Peter Schiff U.S. Bubble Economy

February 28, 2006
Resistance…Denial…Debt
by Bill Bonner

Around the world, people are beginning to notice the signs. While no maturing economy can avoid some sag, bulges and lines, it is the resistance, denial and debt that produce the real problems.

The Russian newspaper, Pravda, reports:

“The United States is heading to financial crisis at top speed. That is correct, America will default on its foreign debt sooner or later if the actual trends remain unchanged. Consequently, the whole dollar-based world (including savings in U.S. currency) may crumble. The picture looks pretty grim this time around. Several factors will have an extremely detrimental effect on the dollar, according to U.S. Secretary of the Treasury John Snow who forwarded a letter full of ominous predictions to 21 members of U.S. Congress. The letter was made public after the markets had been closed for Christmas and New Year’s holidays – a rather appropriate precautionary move in terms of the international foreign exchange market, which is extremely sensitive to any sound produced by U.S. bureaucrats.

“Besides, the U.S. Federal Reserve is going to stop publishing the so-called ‘M 3 aggregate’ reports i.e., data on increase rates in money supply. Given the New Year’s predictions by John Snow, the Fed’s intentions look pretty suspicious. In other words, the international community will have no tool for measuring a real value of the dollar…

“The Fed is going to pull the plug on the data in March this year. Several events should occur in different countries more or less at the same time and thus damage credibility of the U.S. securities. Risk-averse investors get rid of speculative securities e.g., the dollar securities under the circumstances.

“All in all, the situation is quite alarming though it looks like a play being staged on purpose.”
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December 14, 2007
A Review of Peter Schiff’s Crash Proof
by Bob Murphy

Ever since I had my epiphany and realized that Peter Schiff had been right about the imminent collapse of the U.S. dollar, I’ve been meaning to write a review of his book. When the stock market became increasingly volatile, I thought, “I’d really better write that review soon!” But the final straw came today, when I read that wholesale prices in November rose at the fastest rate in 34 years. LRC readers need to learn how to protect their wealth, while they still have some left.

Schiff is president of Euro Pacific Capital, a broker-dealer specializing in foreign markets. He is very well read in Austrian economics, and his pessimistic analyses on CNBC and other outlets have earned him the nickname “Dr. Doom.” You might say that the maverick Schiff is the Ron Paul of investment analysts.
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Comedic Investment Banker explains the Subprime mess

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National Taxpayer’s Union on Spending

Posted by Jesse on February 6, 2008

When you have financial obligations that need to be taken care of what do you do?
You economize and pay down your debt, right? Which presidential candidate will do that?

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Nicholas von Hoffman has a few words about Ron Paul, the economy, and our current monetary policies.

“He is the only candidate who brings up what is happening to our money, which is another way of saying that he is worried about why the cost of buying groceries is going through the roof. While the other presidential contenders are silent on the topic, Paul reminds us that “government officials consistently claimed that inflation is in check at barely 2 percent, but middle-class Americans know that their purchasing power–especially when it comes to housing, energy, medical care, and school tuition–is shrinking much faster than 2 percent each year.”

Paul is the contender who seems to understand that the Federal Reserve Board is not the Vatican and that its chairman, Ben Bernanke, is not the pope. It’s a fixed practice by our politicians to treat whoever is the chairman of the Fed as though he were endowed with infallible powers.

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On Wall Street, the sharper ones know better. They understand that lowering interest rates every time the stock market swoons will eventually, or even a lot sooner, bring a world of pain down on us. As it is, thanks to the Fed, interest rates are lower than the rate of inflation. This anomalous condition is called “negative interest,” and for savers it means that their money is disappearing even as it rests safely tucked away in certificates of deposit.

For people who understand that their money is evaporating in front of their eyes there is a mighty incentive to rush out to the mall while that money is still worth something. For the moment a stampede to the stores by inflation-spooked people may please the economic pooh-bahs because current theory has it that people will buy lots of stuff, which in turn will create lots of jobs. But after they’ve spent their retirement money, then what?

Then people can spend their economic stimulus money. Left undiscussed is how the government is going to get the money it plans to hand out to anybody who has a pulse. Maybe Uncle Sam can borrow it from the Chinese or the Arabs–although both groups are losing enthusiasm for making loans to be paid back in ever-shrinking dollars.”

Posted in economy, Education, free market, Politics, republican, Ron Paul | Tagged: , , , , , , , , , , , , | Leave a Comment »

We need a president with will, integrity, and insight.

Posted by Jesse on January 27, 2008

Posted in *Take Action, abortion, antiwar, Constitution, Current Events, economy, Education, free market, Gold, healthcare, lew rockwell, Libertarian, Libertarianism, LvMInstitute, Mine, Mises, old right, Politics, Pro Market, republican, Rights, Ron Paul, Rothbard, Video | Tagged: , , , , , , , , , , , , , , , | 3 Comments »