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Deficit: The Headline Giveth, but the Text Taketh Away

Written by Gary North on July 12, 2013

The headline was joyous: US budget surplus highest in five years in June. This appeared on the BBC’s website. Good news! The economic recovery is real. Happy days are here again. So, I read the story. Halfway through, I came upon this. Despite that strong month, the Congressional Budget Office forecasts the annual deficit will […]

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Busted California Cities: Pension Liabilities

Written by Gary North on June 14, 2013

New accounting standards are being applied by Moody’s to cities. It turns out that the two biggest cities in California — Los Angeles and San Francisco — are way deeper in the hole than previously admitted. But wait! There’s more! San Jose will be downgraded. So will Inglewood (“The Hood”). So will Azusa. The total […]

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Recession Spreads in Europe, Threatens the USA

Written by Gary North on April 29, 2013

The recession in Europe has spread into every large nation. Still, price are rising. The European Central Bank is powerless. It has officially set lending rates at 0.75%. Still, the economies are crashing. Greece has a 27% unemployment rate. So does Spain. Now there is talk of a rate cut by the ECB. To which […]

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Despite Excel Error, This Time, It’s Still Not Different

Written by Gary North on April 17, 2013

The best-selling book, This Time It’s Different (2010) , which warned against a high government debt-to-GDP ratio, relied on an Excel spreadsheet. Problem: one of the cells was wrong. An article exposing this error has gotten a lot of coverage in the media. Liberals have cheered. At last, relief! They can still remain in the […]

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The Triumvirate of Modern Warfare

Written by Gary North on April 15, 2013

Three factors have made possible the modern world’s wars: graduated taxation, the central bank, and the abolition of the gold coin standard. The relationship between central banking and war has been known for at least 400 years. The ability of the Dutch Republic to wage what was in effect a revolutionary war against the Spanish […]

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Keynesian Leaders Demand More Deficits to Avoid Recession.

Written by Gary North on April 10, 2013

George Soros has said that Europe will go into recession this year if governments adopt austerity, i.e., do not run huge deficits. Our new Secretary of the Treasury has demanded the same thing. Keynesians love two things: national government deficits and central bank counterfeiting to fund these deficits. Their mantra is this: “Deficits and digits.” […]

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Budget: Obama Pretends to Surrender.

Written by Gary North on April 5, 2013

President Obama’s budget was due in February. It is now promised for next week. Of course, key facts — all favorable to Obama — have been conveniently leaked. The media play along. There will be changes in Medicare that will save $400 billion. Then comes the inevitable qualification: over the next 10 years. This is […]

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