Marcus Aurelius was the last of the "Five Good" Roman emperors and is also considered one of the most important members of the Stoic philosophers. He ruled Rome from 161 to 180 AD. He brilliantly said, "Look back over the past, with its changing empires that rose and fell, and you can foresee the future, too." Today we may be seeing the beginning of the end of the American Empire. As Americans we don't like to think of ourselves as having an empire but according to Daniel Larison, The U.S. treats several key regions of the world as privileged space where it is supposed to have military and political supremacy, and regional challengers to that supremacy are treated as potential … [Read more...]
One Chart Explains Why Government Debt Is Dragging on the Economy
By Dan Steinhart, Casey Research The US has too much debt. This is no longer a controversial statement. Some may believe other problems are more urgent, or that we need to grow our way out rather than slash spending. But even the most spendthrift pundits acknowledge that the debt-to-GDP ratio of the US must decrease if we are to have a stable, prosperous economy. The private sector has reacted to this over-indebted reality as you would expect: by deleveraging. Since 2008, households and businesses have extinguished of 67% of their debt when measured against GDP. Some paid debt down purposefully, and others defaulted. For our purposes, it doesn't matter how the debt went away. Only that … [Read more...]
US Savings Bonds Are Still A Safe Investment
With interest rates still at record lows, many people are looking for alternatives to savings accounts. US Savings Bonds are a safe and smart investment choice. No other investment carries the full weight of the U.S. government. The U.S. Treasury Department guarantees investors will receive their full principle plus interest. Consider why purchasing savings bonds is an investment that can be made with confidence. US Savings Bonds: Conservative, but Smart Although savings bonds do not yield as much return as higher-risk investments, investors can rest easy knowing they will not loose their money. The financial downturn of the last few years has resulted in many Americans loosing large … [Read more...]
Gold and the Federal Reserve
Gold-US Dollar Link by Chris Vermeulen The $1800 per ounce level continues to be a major technical resistance area for gold. After hovering near $1800 recently, gold moved sharply away from that level last week to close at $1735 an ounce. Despite that, more fund managers and analysts continue to point to a bright long-term future for gold prices. John Hathaway of the Tocqueville Gold Fund says gold will reach new highs within a year. He based his forecast, like many others, on the fact that negative real interest rates look likely to persist as Ben Bernanke and the Federal Reserve continue to print money. Believe it or not, some mainstream analysts are also touting gold’s … [Read more...]
Bernanke’s Bigger Bubble: QE-3 and the Coming Economic Crash
Why monetarist theory is flawed Federal Reserve Chairman Ben Bernanke really means it this time. He will rescue the economy. Ben S. Bernanke for the first time pledged that the Federal Reserve will buy bonds until the economy gets closer to his goals ... . The central bank yesterday announced its third round of large-scale asset purchases since 2008, with the difference that it didn't set any limit on the ultimate amount it would buy or the duration of the program. ... Bernanke is "going to fight and fight until he sees a real improvement in the economy," said a co-head of global economics research at [a major bank]." He believes quantitative easing can help the economy, so he'll just … [Read more...]
What is the Real Purpose of the Federal Reserve?
The Federal Reserve- Is the Federal Reserve really doing such a bad job… or does it actually do exactly what it's supposed to do, but the average American is in the dark about what that is? The Federal Reserve is merely a "Cartel" of Bankers whose primary purpose is to promote their own interests and not the interests of the American public. "They create money out of nothing, move it around a bit and then collect interest on it." If your or I tried to do that we'd be arrested. “The Fed’s sole purpose: keeping the banks afloat” – G. Edward Griffin In this explosive video, Casey Summit speaker G. Edward Griffin, author of The Creature from Jekyll Island, talks about the Fed's real role … [Read more...]
Will Greece Follow Iceland or Weimar Germany?
In Iceland the bankers were told to stuff it. In Weimar Germany they resorted to the printing press. Which model will modern day Greece follow?It seems that the words Weimar Germany and Hyperinflation are almost synonymous. The Weimar Republic (Das Weimarer Republik in German) is the name of the democratic government which was established in 1919 when Germany was defeated in WWI and Emperor Wilhelm II abdicated the throne. The problem came from the War repairations that were foisted upon Germany by the winners and the growing internal unrest which was allowing the Nazi's to gain a foothold. In an effort to pay their debts, promote full employment, and fight back against growing competitive … [Read more...]
Should I Invest in Inflation Indexed Bonds?
The question of "Should You Invest in Inflation Indexed Bonds?" depends on your personal situation and the current inflationary environment. If you want to have a low risk investment that will keep up with inflation you might consider investing in inflation indexed bonds. Inflation Indexed Bonds When Inflation Rates are High, you might be worried about what's going to happen to your savings. Inflation series bonds are one option to consider. These unique investments have the ability to fight inflation and protect your savings from total devastation. Types of Inflation Indexed Bonds There are two different types of inflation indexed bonds issued by the U.S. Treasury one is called the … [Read more...]
What are T-Bills?
T-Bills Definition: Treasury bills (aka. T-Bills) are short-term debt obligations that are backed by the US government and which have less than a year’s maturity. They are sold in $1000 denominations and purchases can go up to 5 million. Commonly, T-bills come with 4-week (1 month), 13-week (3 month) or 26-week (six month) maturities. The issuing of T-bills is done by a competitive bidding process where the bids are placed on “discounts from par” which means that unlike in the case of conventional bonds with fixed interest rates, here, it is the bond appreciation that gives the holder his returns. For example, if you buy a T-bill with a 13-week maturity at $9,950. What happens here … [Read more...]
What You Need to Know About the Federal Reserve System
The Federal Reserve System If you saw the HBO movie “Too Big to Fail,” you may have the notion that the Federal Reserve System, commonly known as The Fed, deals with high level banking issues that have worldwide implications. And you would be right. But The Fed also regulates banking functions that affect individual Americans, ranging from regulating debit card overdraft fees and limiting gift card fees to issuing U.S. Treasury savings bonds. History of the Federal Reserve The Founding Fathers were cautious about establishing a central bank, thinking that it would encourage irresponsible borrowing by the government. As a result, America functioned without a central bank throughout the … [Read more...]
