On August 15, 1971, President Nixon announced to the world that the U.S. Government is defaulting on its promise to redeem dollars to foreign institutions that had the right to exchange their greenbacks for gold at the official rate of $35 dollars per ounce. This is in an example of a bad default because the U.S. Government had the legal obligation under the 1944 Bretton Woods agreement that shaped the postwar international monetary system to maintain the dollar as the world’s reserve currency by making it redeemable into gold at a fixed rate.
Archive for the ‘U.S. Dollar’ Category
Obama’s vision: more crony capitalism and foreign intervention; the GOP response: we support the welfare-warfare state, too
27
Jan
While I was driving home Tuesday evening, I listened to President Obama’s State of the Union address for a few minutes on the radio. Obama’s speech was vapid with an insightful phrase thrown in here and there to show he really is a champion of free enterprise and middle-class values. Obama sounded like a cross between Vince Lombardi and the head of the Chamber of Commerce.
Economic illiterates–Tony Fratto and Greg Valliere–defend the Fed and attack Ron Paul
03
Dec
Economic illiterates dominate financial cable news programs. These commentators reveal their ignorance about how the Federal Reserve manipulates interest rates, causes financial bubbles, and debases the currency. For starters, these lame defenders of the Fed should read Murray Rothbard’s What Has Government Done to Our Money?, The Case for a 100 Percent Gold Dollar and The Case Against the Fed. Instead of being knowledgeable about money and banking so they can inform CNBC’s viewers, they sound like high school dropouts. They spout economic nonsense that has been debunked for the past several centuries. In time, the coming price inflation will blow up in their face, and they will deserve to be never heard from again.
This is the government we have chosen
13
Nov
One of the most memorable lines in American cinema occurred on a balcony in a Havana hotel on the eve of the Cuban Revolution. On the balcony Hyman Roth, an elderly gangster, is speaking to Michael Corleone about making an “investment” in Cuba, as rebel forces are challenging the regime of Dictator Fulgencio Batista, days before Fidel Castro takes over Havana on January 1, 1959. At this meeting of several Mafia chieftains, Roth says to Michael, “This is the business (crime) we have chosen.”
When will the U.S. dollar collapse?
28
Oct
The Federal Reserve has created more than a trillion dollars in the past few years. The last two federal budgets have had back-to-back one trillion dollar plus deficits for the first time in history. The federal government budget shows no signs of stabilizing at more than $3.5 trillion annually, let alone declining from these nose bleed levels anytime soon. Unfunded liabilities of the federal government have reached an astonishing $202 trillion, according to one recent analysis. Despite the collapse of the Soviet Union and the supposed “peace benefit,” total military spending is reaching unprecedented levels in a post Cold War era. Read the rest of this entry »
Ben Bernanke’s money machine is about to go into overdrive
16
Oct
On October 15th Ben Bernanke, chairman of the Federal Reserve, gave a speech at the Federal Reserve Bank of Boston outlining his views on the economy and asserted that the FED will pursue its dual mandate vigorously: maximum employment and price stability.
The BS GOP “Pledge to America” and what should replace it
25
Sep
With much fanfare including a photo op away from the nation’s capital, GOP congressional leaders rolled out their “Pledge to America,” which includes all the images (Statue of Liberty, Mount Rushmore, small businesses, town hall meetings and of course the American flag) to invoke a warm and fuzzy feeling among the electorate who appear ready to vote overwhelming for Republicans in the midterm elections.
The counter counterrevolution continues
16
Sep
The results of the GOP primaries this year reveal one indisputable fact; grassroots Republicans are angry, frustrated, and disgusted; they want to restrain the power of the federal government. We will have to wait until November 2nd to see if Democrats and Independents feel the same way as GOP activists, who have sent a clear message to the GOP establishment, enough of your rhetoric, enough of your big government policies, it’s time to restore the principles of freedom, liberty and limited government.
The financial collapse is accelerating
27
May
In an New York Times op-ed, “Easy Money, Hard Truths,” hedge fund manager David Einhorn lays out the case that we should not worry about future generations feeling the pain of a huge national debt, unfunded liabilities and a weak economy. Instead, Mr. Einhorn argues that the imbalances in our economy are going to get worse, because he observes “I don’t see the political will to steer the country away from crisis.” The most recent crisis that just passed was “fixed” by massive government “stimulus” and a heavy dose of easy money. And more easy money is on the way.