When, during the invasion of Iraq, the United States Government issued its famous deck of playing cards with the 52 arch villains of the Iraqi police state, Saddam Hussein’s face adorned the Ace of Spades. If the Obama Administration wanted to engage in a similar public relations campaign for the real estate crisis, the top card should be reserved for Alan Greenspan. 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

The direct cause of soaring prices is printing too much paper mon­ey; the direct cure is to stop printing it. The indirect cause of inflation is government over­spending and unbalancing the bud­get; the indirect cure is to stop overspending and to balance the budget.  FULL ARTICLE

The US economy as we know it has collapsed. This has happened before, twice, and history is repeating itself again. This is the Third Depression the United States has suffered, and it will be the worst. FULL ARTICLE

Credit is neither good nor evil. Some economists point out that credit is not even necessary, but most would agree that credit has enabled many individuals and companies to grow much faster than they otherwise could have. However, not many would challenge the claim that credit has also ruined the lives of many, even though modern society has (somewhat) moved away from debtor’s prisons.  FULL ARTICLE

If you try to postpone recession the way the US government has tried to do, then one day you will have a much bigger problem. If you postpone recessions through deficit financing, or through easy monetary policies, then obviously you have very strong debt growth as we have had in the US. Debt as a percentage of GDP has expanded from 130% in 1980 to 360% today. FULL ARTICLE

Washington is telling us that our problems result from a lack of consumer spending. Therefore, the solution is for government spending to pick up the slack. However, if Americans are too broke to spend, then how can our government spend for us? The only money they have is taken from us through taxation. FULL ARTICLE

Economists generally agree that, in the long term, hyperinflation does more damage to an economy than severe recession. However, recession has always made a far more potent political impact. After all, it may be difficult to notice the monthly debasement of your paycheck (inflation), but it is abundantly clear when the check suddenly stops coming (recession). Knowing this, the Administration has chosen the path of inflation. FULL ARTICLE

Last week the Federal Reserve finally made clear what should have been obvious for some time – the only weapon that the Fed is willing to use to fight the economic downturn is a continuing torrent of pure, undiluted, inflation. The announcement should be seen as a game changer that redirects the fury of the financial storm directly onto our shores FULL ARTICLE