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Railroad Revenue Goes Off the Tracks

Posted on January 23, 2016

trainwreck

With Union Pacific, Canadian Pacific Railway and CSX reporting downbeat quarterly earnings recently, company executives and analysts say the rail sector is clearly in recession — and the industry may signal contraction in the broader economy as well. On Thursday, top U.S. railroad operator Union Pacific (NYSE:UNP) said freight revenue for coal plunged 31% in […]

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China Syndrome: The Great Unwind

Posted on January 2, 2016

ghost-city

By David Stockman The giant credit fueled boom of the last 20 years has deformed the global economy in ways that are both visible and less visible. As to the former, it only needs be pointed out that an economy based on actual savings from real production and income and a modicum of financial market […]

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We’re Wealthier Than the Government Says

Written by Gary North on September 12, 2015

wealth

Most economic statistics don’t lie, but they mislead. The statistics produced by the Bureau of Labor Statistics are pretty good, according to prevailing economic theory and statistical theory, but they are misleading to a fault. This is not because the government rigs the statistics. It is because objective statistics cannot deal effectively with subjective value. […]

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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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Taxes: Bad News, Good News

Written by Gary North on April 25, 2015

Tax-Recession

Federal tax receipts are approaching 17.5% of GDP. Whenever the percentage gets this high, a recession follows. That’s the bad news. What’s the good news? The percentage rarely gets above this, and when it does, there is a recession. Receipts fall. This means that the federal government cannot get above 20%. It can borrow to […]

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A Letter to David Stockman

Written by Gary North on March 14, 2015

david-stockman

Dear David: I want to let you know just how glad I am I’m not in your shoes. Responsibility goes with the territory. You oversee a lot of territory. You obviously have a lot of spare time on your hands, and so you have started a website. It gets a lot of traffic. The site […]

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Subprime Auto Loans Take a Hit

Posted on March 5, 2015

auto-loans

by Wolf Richter Wells Fargo, which originated $30 billion in auto loans last year, has for the first time put a cap on subprime auto loans, limiting the dollar volume of subprime loan originations to 10% of its total auto loan originations. The New York Times reported that the bank, “according to people briefed on […]

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A Large Order of Carnage. Hold the Mao.

Posted on March 3, 2015

euro-breakup

By David Stockman It is almost certain now that we are at the threshold of crossing the Rubicon which will result in a crackup of the EU and the euro.  There are just too many centrifugal forces blowing apart this experiment, which was misbegotten from the very beginning. That will then catalyze a thundering global […]

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