Certainly I’m not wildly optimistic but embrace what Shaun Chamberlain, author of “The Transition Timeline“, calls dark optimism, that is, being “unashamedly positive about what kind of a world humanity could create, and unashamedly realistic about how far we are from creating it today.”  FULL ARTICLE

Over the past few months, the government has literally blasted the economy with trillions of new dollars conjured from the ether. The fact that this “stimulus” has blown some air back into our deflating consumer-based bubble economy, and given a boost to an oversold stock market, is hardly evidence that the problems have been solved. It is simply an illusion, and not a very good one at that. FULL ARTICLE

This week, based on indicators of improving Chinese manufacturing activity, commodity and stock markets surged in the Pacific Rim. It appears that China’s recession-fighting policies are being judged successful. The 41 percent rally in Chinese stocks in 2009 from the 2008 lows dwarfs the single digit rallies in the U.S. and Europe. With Western economies still sluggish, eyes are turning eastward for solutions to the global economic riddle. As such, recent hints at the direction of Chinese monetary policy should be closely regarded. FULL ARTICLE

Americans in the past fifty years have come to believe in a “something for nothing” economy. As little children we were raised to the crooning of Jiminy Cricket singing, “When you wish upon a star your dreams come true.” While it is true that America has been the land of great possibilities, there are limits that we have failed to acknowledge. FULL ARTICLE

Last week, when the U.S. Treasury unveiled the basics of their lender “stress tests”, the Fed concluded that “most U.S. banking organizations currently have capital levels well in excess of the amounts required to be well capitalized.” Simultaneously, they also claimed that the banks needed more capital. Apparently the Fed has little understanding of irony. FULL ARTICLE

The People’s Republic of China announced a rise in its official holdings from 600 metric tons to 1,054 tons, making the country the world’s #5 holder of gold reserves.  The 600 metric ton level had remained constant since 2003. While a rise of 454 tons sounds like a lot, at $900 USD per troy ounce, this is “only” $13 billion.

The United States has reported the largest reserves – over 8,100 tons, but GATA (the Gold Anti-Trust Committee) reports these holdings may not exist as they are strangely reported as “Deep Storage Gold.”  Continue reading →

Higher losses among credit card lenders and higher rates for credit card users would greatly diminish both the availability and desirability of consumer credit. Fear of losses and the absence of a secondary market to unload risk would force lenders to more judiciously extend credit. Simultaneously, higher rates would reduce the appeal of credit card debt, causing fewer Americans to partake. FULL ARTICLE

I’ve been worrying about the state of the economy, what with the bailout and all. Apparently all is well.

I got a notice in the mail yesterday from Social Security. It says, “Good news! The economic recovery bill that President Obama signed into law in February 2009 provides for a one-time payment of $250 to Social Security and Supplemental Security Income (SSI) beneficiaries.” It says my wife will get a one-time check in the same amount. That totals $500! Continue reading →

Government does not have any money of its own. It only has what it takes from the rest of us. If individuals repay their debts, but their government takes on additional debt, we are all simply swimming against the tide FULL ARTICLE

Rightly, the students of Austrian Economics have laid the blame for the current economic crisis squarely on the doorstep of the Keynesian policies of governments and central banks. However, in this case, there are other culprits involved, most notably the former titans of financial services. FULL ARTICLE