Black Friday’s Gun Sales: A Record

Written by Gary North on December 5, 2011

Background checks for gun sales on Black Friday were 129,000. That was a one-day record. It was one-third higher than any day on record: Black Friday 2008. The actual number of firearms sold was higher. Multiple firearms can be purchased on the basis of one background check. The FBI does not track sales, only background […]

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Co-Signed Italian Debt: The Eurozone “Solution”

Written by Gary North on December 5, 2011

There is lots of news today about how the newly non-elected leader of Italy is proposing spending cuts. That’s what the headlines say. The New York Times reports: In the process, European leaders will begin to change the fundamental structure of the union, creating a form of centralized oversight of national budgets, with sanctions for […]

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Forclosures Rise, Delinquencies Fall

Written by Gary North on December 5, 2011

The percentage of foreclosed houses in inventory vs. all mortgages is at all all-time high, over 4%. But delinquencies are down 30% from a year ago. Delinquencies are now averaging 631 days — almost two years since the final payment. This means that owners can accumulate enough money to make a down payment after they […]

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“Shell Game”: Pretending to Cut the Federal Deficit

Written by Gary North on December 5, 2011

That is the description given by a first-term Republican Congressman, Allen West. The latest battle is over the extension of the payroll tax cut. Obama favors it. Republicans do not want to run this year on a platform of having let a tax rise. So, the Congress will vote to extend it. Then where will […]

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America’s Debt-to-GDP Ratio: 100%

Written by Gary North on December 5, 2011

Well, we don’t know for sure. The numbers are rising too fast. But it’s close. If it isn’t 100% today, it will be by Christmas. The debt is raging ahead: $100 billion a month. The GDP increase is far more modest. We can see where this is headed. The old rule was that 100% was […]

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The End of the American Dream Came in 2008

Written by Gary North on December 5, 2011

What is the American dream? A good job at a decent wage. This matters even more than owning your own home. A pair of historical charts show that this dream ceased to be a reality in 2008. They show that total non-farm employment declined in 2001, then shot up in Greenspan’s bubble. But employment fell […]

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FED Inflation Will Fail, Say Two FED Presidents

Written by Gary North on December 5, 2011

What’s  this? Creeping sanity at the FED? Well, at least at the Dallas FED. The U.S. Federal Reserve and other central banks must not succumb to calls for additional help from monetary authorities in the face of high budget deficits, two top Fed officials said on Friday. Using the Fed as a printing press to […]

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How the FED Buys the Economists’ Support

Written by Gary North on December 3, 2011

To buy the support of the nation’s academic economists, the FED pays millions of dollars in contracts. It hires economists to write papers that few people in the FED ever read. The FED hires thousands of economists for part-time projects. The FED understands this principle: “He who pays the piper calls the tune.” And: “If […]

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French Fried Banks

Written by Gary North on December 2, 2011

If Italy defaults in the next few weeks, or even suspends interest payments, French banks will need a massive bailout. Where will they get the money? From the French government? But where will it get the money? At what price? The dominoes could fall. Other nations’ banks could fail. The world faces French fried banks. […]

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