By Peter Morici

Cognitive dissonance—a refusal to accept objective facts that define rational behavior—is at the root of impending disaster in Washington.

House Minority Leader Pelosi and her colleagues simply won’t accept that the two wars, Bush tax cuts and prescription drug benefit for seniors didn’t cause the deficit. To point: in 2007, the last year before the financial crisis and with all the aforementioned in play, the deficit was a manageable $161 billion—that’s Read More »

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By Jack Kneafsey

I couldn’t resist featuring this headline from Thursday’s London Telegraph, in which Ambrose Evans-Pritchard suggests that by letting the U.S. default “As an historic policy error it would match the New York Fed’s decision to raise interest rates twice in one week in October 1931, but at least the Fed had an excuse. (The Banque de France had withdrawn gold reserves from the US).

Earlier, this writer had suggested that Obama Read More »

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EDITOR’S COMMENT: This is a big concern that I have written about numerous times previously,  as I believe there is a real chance of U.S. government commandeering your IRA’s and 401K’s within the next year or two. I could see Obama or someone else declaring a “national emergency” in order to have access to the largest pool of untaxed funds in this country, and requiring the various Read More »

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By Charles Kadlec

Spectacular failure.

These words came to mind as the dismal employment data for June were released earlier this month. After the biggest spending binge in peacetime American history, the unemployment rate is stuck above 9%, while in May fewer than 20,000 jobs were created in what was once a vibrant US economy. Adding in discouraged workers drives the combined rate to 16.2%. Wage rates fell, as did the average workweek.

It Read More »

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By Alasdair Macleod

Forecasters face a dilemma: is the outlook inflation, or deflation? And given the recent signs of disappointing economic growth, are we worrying too much about inflation? Certainly, for the Keynesians, who are constantly on the look-out for signs of deflation, and who believe that governments must at all costs keep prices gently rising, the alarm bells are ringing.

At the heart of their economic philosophy is the tired old economic fallacy Read More »

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By Gold Report with Bob Moriarty

With the price of gold hitting record highs and equity prices lagging behind, Bob Moriarty, founder of 321gold.com, says it’s time to gather some precious metals as insurance against hyperinflation or deflation—whichever may be coming our way—and to stock up on junior resource stocks. Prudent picks, he suggests in this exclusive interview with The Gold Report, stand a good chance of yielding returns up to 500%.

The Read More »

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By John Browne, Senior Market Strategist, Euro Pacific Capital, Inc.

President Obama has continued and increased the reckless spending of the previous Administration. Now, as the federal debt reaches its statutory limit, he is spreading fear and panic in the hopes of having it raised.

Many of the key people responsible for America’s historic mess, including the President, Treasury Secretary Geithner, former NEC Director Summers, and Fed Chairman Bernanke, have pronounced publicly that a failure Read More »

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By Ron Paul, U.S. Congressman

Imagine you had a pesky neighbor who somehow took out a mortgage on his house in your name and by some legal trickery you were obligated to pay for it.  Imagine watching this neighbor throw drunken parties, buy expensive cars, add more rooms to the house, and hire dozens of people to wait on him hand and foot.  Imagine that he also managed to take out several credit Read More »

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EDITOR’S COMMENT:  This forecast is not the same as Obama’s recent scare tactics to have the debt ceiling raised. Unfortunately, because of our uncontrolled government spending, I truly believe that this downgrading event is about to occur regardless of what happens to our debt ceiling. The ratings agencies are several years late in catching on to our predicament, and they now appear to want to catch up, and are Read More »

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