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Jim Willie Cries “Wolf!” Again

Written by Gary North on August 13, 2016

FRED-AMB2016

He keeps trying. He is always wrong. I begin with a chart of Federal Reserve monetary policy. Since October 2014, the FED has pursued the longest period of monetary stability in the last 30 years. Let’s look at this chart from October 2014 until today. This reveals deflation, not inflation. This is not what is […]

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Unfunded Federal Liabilities: Snowpack and Avalanche

Written by Gary North on February 27, 2016

unfunded-liabilities

I begin with what I regard as the fundamental fact of modern economic life: the present value of the unfunded liabilities of the United States government. The economist who has been most vocal about this is Prof. Lawrence Kotlikoff of Boston University. He releases an estimate every year. His estimate is this: somewhere in the […]

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Let Americans Buy the Government’s Gold at $42.22 per Ounce

Written by Gary North on September 26, 2015

american-eagle-coins

Everybody has a scheme for reducing the federal deficit. Here is my plan. Because the present value of the unfunded liabilities of Social Security and Medicare is now in excess of $200 trillion, there is nothing relevant that could be done by the federal government to increase revenues sufficient to avoid the great default. In […]

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Christian Economics in One Lesson, Chapter 23

Written by Gary North on September 5, 2015

christian-economics

The Assault on Saving The LORD shall open unto thee his good treasure, the heaven to give the rain unto thy land in his season, and to bless all the work of thine hand: and thou shalt lend unto many nations, and thou shalt not borrow (Deuteronomy 28:12). He shall lend to thee, and thou […]

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David Stockman’s Burden

Written by Gary North on September 5, 2015

stockman

David Stockman has written the finest piece of financial journalism of our generation: The Great Deformation: The Corruption of American Capitalism. It shows how we got into the mess we are in. Blame the government. Then blame us. It is our government. We must not parrot Flip Wilson’s Geraldine: “The devil made me do it!” […]

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On-Budget Debt: 3x Since 1/20/2001

Posted on August 22, 2015

debt-chart

A nice summary: We used the Treasury Department’s Debt to the Penny clock, which is a daily log of federal debt going back about 20 years. The debt held by the public and gross federal debt (which includes debt held by the public and intragovernmental holdings) are both considered appropriate measurements. But we only have […]

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IOU’s: China Buys Treasury Debt

Written by Gary North on May 16, 2015

treasury-bond

China, meaning China’s central bank — the People’s Bank of China — started buying Treasury IOU’s again in March. It purchased $36 billion worth. It now holds over $1.2 trillion in Treasury IOU’s. China has now leaped ahead of Japan as the #1 foreign holder of U.S. government debt. Add Hong Kong to this: another […]

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Chicago Is Going Bankrupt

Written by Gary North on May 16, 2015

Rahm Emanuel was re-elected Mayor of Chicago. Lucky Rahm! He will get to oversee the official bankruptcy of the city. He will go down as the mayor who took the third largest city in the United States into financial Armageddon. The man who said, “You never want a serious crisis to go to waste,” will […]

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