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

Written by Gary North on September 26, 2015


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


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


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


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


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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Peak Debt and the Looming Crash

Written by Gary North on May 2, 2015


The phrase, “more bang for the buck,” is usually associated with the Vietnam War. It is associated with Defense Secretary Robert McNamara’s focus on statistics: military expenditures vs. enemy deaths. In fact, the phrase came from Eisenhower’s Secretary of Defense, Charles Wilson. He used it in 1954 to justify the Defense Department’s reliance on nuclear […]

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Muni Bonds as AAA Bank Capital

Written by Gary North on April 25, 2015


The Federal Reserve System is planning to issue new rules that will allow banks to buy municipal bonds as credit reserves for banks. Follow the logic: banks will supply capital to cities, which will serve as credit for banks. This is modern banking 101. This new arrangement will help provide a floor for cities’ debt. […]

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