EDITOR’S COMMENT: In his comments, Jeff Harding provides us with an important insight regarding Ben Bernanke and the current thinking at the Fed regarding what needs to be done next to “fix’ our ailing economy. Jeff focuses on the importance of econometrics being used by contemporary economists to try to explain why certain “governmental” actions have not achieved their supposedly desired results. Unfortunately, this statistical approach merely gives the Fed and others Read More »

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By Peter Morici

The Commerce Department reported the economy grew at a 2.2 percent annual rate the first quarter of 2012, slower than the 3.0 percent pace registered the previous period. The consensus forecast was 2.5 percent, while my forecast was exactly on mark at 2.2 percent.
GDP growth was powered by much stronger consumer spending—especially on autos and recreational vehicles—substantial additions to business inventories, and stronger residential construction. Also, business investments in machinery Read More »

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EDITOR’S COMMENT: Terrific response from John Tamny to President Obama’s constant lecturing us on what he believes is “fair”, and what isn’t “fair”. And, I particularly like his conclusion:

“A wise adviser might tell him how it’s not fair that he’s smart (if not misguided), that it’s not fair for him to have an attractive wife and two healthy kids, and that it’s very unfair that he was born with highly unequal political Read More »

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EDITOR’S COMMENT: As you know, a number of economists are still uncertain as to whether we are likely to have a round of deflation or inflation in the near future. I still believe strongly that we will continue to experience much higher than desirable levels of inflation of the next several years, maybe even a bout of hyperinflation, not forgetting the fact that we are already experiencing a very high level of inflation with Read More »

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By Alasdair Macleod

An article by Professor Lew Spellman has caught the attention of the sharp-eyed, and may indeed be important. Spellman, who in the past has been an economist at the Fed and served as an assistant to the Chairman of the President’s Council of Advisors, makes the point that gold is quietly becoming a core banking asset for collateral purposes, at a time when the alternative, sovereign obligations, is becoming dangerously Read More »

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EDITOR’S COMMENT: The writers over at The Economic Collapse periodically turn their attention to government waste, and publish their best/worst examples of this ongoing waste. As you read their many examples, just remember that it was President Obama, while running for office, stated that “he would personally review every line of the budget,” so as to stop all this government waste.  I guess he skipped a few thousand pages!

By Economic Collapse

Why do Read More »

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By Wealth Wire

Great Visual:

This visual says it all.

With America’s debt currently at $15.6 trillion and rising, it’s not a pretty picture. (In fact you can check on this debt every second by viewing the National Debt Clock on the right column of this article.)

The worst part is that the Eurozone and the U.K combined – when taking more than six nations into consideration – is still in debt by Read More »

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By Michael Panzner

A Financial Times report, “World Economy Still on Life Support,” pours more cold water on the notion that conditions are returning to “normal.”

The world economy “remains on life support” from central banks and has deteriorated since last autumn, the latest Brookings Institution-Financial Times tracking index shows, despite some recent signs of stabilisation.

Economic weakness extends across the Group of 20 leading economies, according to the Read More »

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By Charles Hugh Smith

We are like passengers on the Titanic ten minutes after its fatal encounter with the iceberg: the idea that the ship will sink is beyond belief.

As we all know, the “unsinkable” Titanic suffered a glancing collision with an iceberg on the night of April 14, 1912. Ten minutes after the iceberg had opened six of the ship’s 16 watertight compartments, it was not at all apparent that the Read More »

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