What Greece’s Alleged ‘Collapse’ Is, and Is Not

Posted on July 8th, 2015

Greece last proposalBy John Tamny

With Greece expected to default on its government debt, markets are to varying degrees convulsing. The obvious question is whether or not the panic is rooted in something real to worry about. Not really. As is always the case, market fears are a creation of government error, not worries about a very minor economic entity.

To see why, it needs to first be remembered that a Greek default would be nothing new. As Carmen Reinhart and Kenneth Rogoff noted in their much talked about 2009 book This Time Is Different, Greece has been in default mode roughly half of its modern existence. That its creditors might suffer a “haircut” on what is owed them is far from novel.

The only reason a default constitutes news has to do with who holds some of the country’s debt. As evidenced by how the shares of German and French banks have rallied over the years each time a potential debt workout was reached, the story behind the non-story that is a Greek default involves banks that do not have an Athens address. In short, Greece’s debt troubles have little to do with an historically profligate country, and everything to do with banks that are wrongly seen as too important to be allowed to suffer their mistakes.

Importantly, if banks were properly allowed to fail much like other private business are allowed to with great regularity, bank exposure to Greece would be a non-story. Better yet, banks likely wouldn’t have exposure to Greece in the first place given its lousy track record. In short, government involvement in what should be the private doings of the private economy has created a “crisis” that would not exist absent the desire of politicians to insert themselves into a global economy that would be much healthier without political meddling. Read More..

Greece Votes NO – Let The Chaos Begin…

Posted on July 6th, 2015

NO signs, NOEDITOR’S COMMENT: Clearly, this is a MUST and THOROUGH READ for those of you, who want to stay informed on the evolving Greece crisis! By the way, that should be everyone, as this is potentially that important!

By Michael Snyder

The result of the referendum in Greece is a great victory for freedom, but it is also threatens to unleash unprecedented economic chaos all across Europe.  It is being reported that approximately 61 percent of Greeks have voted “no” and only about 39 percent of Greeks have voted “yes”.  This is a much larger margin of victory for the “no” side than almost everyone was anticipating, and it represents a stunning rejection of European austerity Massive celebrations have erupted on the streets of Athens and other major Greek cities, but the euphoria may not last long Greek Prime Minister Alexis Tsipras is promising that Greece will be able to stay in the euro, but that gives EU bureaucrats and the IMF a tremendous amount of power, because at this point the Greek government is flat broke.

Without more money from the EU and the IMF, the Greek government will not be able to pay its bills and virtually all Greek banks will inevitably collapse.  Meanwhile, the rest of Europe is about to experience a tremendous amount of pain as financial markets respond to the results of this referendum.  The euro is already plummeting, and most analysts expect European bond yields to soar and European stocks to drop substantially when trading opens on Monday morning. Read More..

Greece Just ‘First Domino to Fall’

Posted on July 6th, 2015

Greek Myth Math from www.caglecartoons.com # 165954By Peter Morici

The troubled euro has always been a bad idea because a single currency just doesn’t make sense for too many European Union countries, says leading economist Peter Morici, a professor at the University of Maryland.

“Europe had a perfectly sound economic community before the Euro,” Morici said

“The Euro is a symbol more than a useful tool and they need to get away from symbols and get back into doing what they need to do. And that is to continue to reform and strengthen their economies. A currency doesn’t do that for them.” Read More..

It’s the Obama Record That O’Malley and Sanders Are Bashing!

Posted on July 2nd, 2015

Better off food stampsBy Silvio Canto, Jr.

Governor O’Malley made it official.  He is in and running for us, as he told the crowd:

Our economic and political system is upside down and backward and it is time to turn it around[.]

Senator Sanders said something similar a few days ago.

Who’s been in the White House for seven years?  Whose stimulus didn’t stimulate?  Whose “shovel ready” jobs weren’t ready after all?  Who promised so much and didn’t deliver? Read More..

The Charade That Is Greece

Posted on June 30th, 2015

Greece RiotsBy Monty Pelerin

The charade that is Greece and the European Union has been going on now for more than five years. Greece’s financial condition could not be repaired years ago. It is only worse now. It must end badly. The fact that it hasn’t is a sign of the desperation of European socialists and one-world government types.

Does Greece die tomorrow? I don’t know. It depends on how much more money the Eurocrats want to throw into this bottomless abyss. Greece’s fate was sealed several resurrections ago. Nothing has changed except for each talk at a solution being more incredible.

What will Greece’s failure do to world markets? It won’t help, obviously. However, if it hurts them it will show the insanity that rules today’s financial markets. This outcome was inevitable. Only the timing was unknown. Despite this inevitability financial assets continued precariously levitating well beyond reasonable levels. Does that suggest markets are rational? Or, they are being manipulated by central banks? Or that people are stupid for remaining in them? Pick your explanation. Read More..

And So It Begins – Greek Banks Get Shut Down For A Week And A ‘Grexit’ Is Now Probable

Posted on June 29th, 2015

Image of Greeks lined up at banks and ATMsEDITOR’S COMMENT: This is a MUST READ in its entirety given the huge potential impact that a Greek default could have upon Europe, the Eurozone, the euro and possibly even the rest of the developed economies.

By Michael Snyder

Is this the beginning of the end for the eurozone?  For years, European officials have been trying to “fix Greece”, but nothing has worked.  Now a worst case scenario is rapidly unfolding, and a “Grexit” has become more likely than not On Sunday, the European Central Bank announced that it was not going to provide any more emergency support for Greek banks.  But that was the only thing keeping them alive.  In order to prevent total chaos, Greek banks have been shut down for at least a week.  ATMs are still open, but it is being reported that daily withdrawals will be limited to 60 euros.  Of course nobody knows for sure if or when the banks will reopen after this “bank holiday” is over, so needless to say average Greek citizens are pretty freaked out right about now.  In addition, the stock market in Greece is not going to open on Monday either.  This is what a national financial meltdown looks like, and the nightmare that has been unleashed in Greece will soon start spreading to much of the rest of Europe.

This reminds me so much of what happened in Cyprus.  Up until the very last minute, politicians were promising everyone that their money was perfectly safe, and then the hammer was brought down. Read More..

Billionaire: “We Are Destroying the Middle Class. That’s What Keeps Me Awake at Night.”

Posted on June 25th, 2015

Unemployed former neighborBy Max Slavo

“We’re in for a huge change in society. Get used to it. And be prepared.”

That’s not a new message, but as the warning will affect the personal wealth, job prospects and ability to stay afloat of nearly everyone on the planet, it is worth paying attention to.

They are the blunt words of Johann Rupert, a jewelry and fashion mogul from South Africa worth an estimated $7.5 billion.

Rupert blasted the actions of “.1 percent of .1 percent,” or roughly the upper 7,000 individuals of the population, which paints with a narrower brush than the general class warfare slogans against the 1%, who instead make up an enormous 70 million people across the globe.

Bloomberg reported:

We cannot have 0.1 percent of 0.1 percent taking all the spoils… It’s unfair and it is not sustainable.”

How is society going to cope with structural unemployment and the envy, hatred and the social warfare?” he said. “We are destroying the middle classes at this stage and it will affect us. It’s unfair. So that’s what keeps me awake at night.” Read More..

The TPP is Not About Free Trade

Posted on June 23rd, 2015

No! No! No! signs TPP, Trans-Pacific-Partnership, By Philippe Gastonne

Washington’s failure in recent years to keep careful watch over what goods are made where — especially when it comes to such vital items as electronics and drugs — means the United States now depends far more on China than vice versa. Back in the 1990s, advocates of liberalizing U.S. trade with China said economic interdependence would inevitably lead to peaceful coexistence. But one-sided dependencies invite adventurism, as China’s growing belligerence today proves.

Washington must now address the fundamental flaws in the international trade system that gave China such a big advantage. The White House claims the proposed Trans-Pacific Partnership will help offset China’s increasing heft. Unfortunately, the pact, which includes 11 Pacific Rim allies but excludes Beijing, will do nothing to fix the problems. Read More..

Donald Trump and the American Dream

Posted on June 22nd, 2015

Donald Trump

EDITOR’S COMMENT: A very insightful and unusual perspective on Donald Trump, one that contrasts sharply with the version presented by our liberal, progressive media.

By Jeffrey Lord

Yes, he really is running.

Donald Trump announced for president.

Apparently, the conventional wisdom that Trump was just making presidential noises because because he always does turned out to be…well….flat wrong.

Yesterday, the Washington Post reported that Trump has released papers showing his net worth to be $9 billion. A release that is being made in anticipation of his announcement today. Apparently the conventional wisdom over the years that had people either insisting he wasn’t really a billionaire at all (as did a New York Times “business reporter” who quoted anonymous sources insisting Trump was “not remotely close to being a billionaire”) or worth a paltry $4.1 billion (as Forbes magazine does this minute) were…well…flat wrong.

And six days ago, after another story in the Washington Post from just over a month ago insisted Trump “can’t get any respect,” the news headlined at Newsmax was this:

Poll: Trump Surges Among GOP Hopefuls in NH

There’s a lesson here. To wit: It is a fool’s errand to underestimate Donald Trump. Read More..

Feds Sent $17 Billion In Disability Payments To Unqualified, Prisoners And The Dead

Posted on June 19th, 2015

DID YOU KNOW? red Rubber Stamp over a white background. BasicEDITOR’S COMMENT: Even though President Obama promised during his 2008 Presidential Campaign and in a special new effort announced in 2010 to “Crack Down on Waste, Fraud and Abuse” throughout the federal government, it is obvious that rooting out fraud and waste does not occupy any special priority with this administration. In fact, Obama and his administrators, when questioned on this, seemed to look the other way. Yet, this fraud and waste is costing the American taxpayers huge amounts of funds that could be redirected to more beneficial uses.

By Derek Hunter

A Social Security Administration (SSA) audit has discovered nearly $17 billion in overpayments made to beneficiaries between 2003 and 2014. The report sampled 1,532 beneficiaries and found 44.5 percent of them received too much in payments, were no longer disabled, were in prison or had died.

Of the $16.8 billion in erroneous payments, the report found $8.1 billion had been recovered, leaving a net loss for taxpayers of $8.7 billion over the decade the report covered. It also found the “SSA prevented about $8 billion in overpayments” over the same period. Read More..

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