$15t On-Budget (Admitted) Debt Limit Breached

Written by Gary North on November 18, 2011

The on-budget debt of the United States government breached the $15 trillion mark this week. This is the debt that is counted. It does not include the unfunded liabilities of Social Security and Medicare, which are now in the $100 trillion range over 75 years. Some estimates are higher. More important is the sources of […]

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European Loophole: How to Inflate Legally

Written by Gary North on November 18, 2011

The only institution with enough money to bail out the PIIGS is the European Central Bank.  The threat of a domino effect is increasing. By treaty, the ECB is not allowed to buy the debt of governments. It gets around this by lending to banks that buy government debt. But the bankers are beginning to […]

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System D: Where The Tax Man Never Comes

Written by Gary North on November 18, 2011

“System D” is the new term for black markets. Black markets around the world are growing. The estimate is that it accounts for $10 trillion worth of production. I think this is a low-ball estimate. System D accounts for far more. The heart of these markets is secrecy. If you think you can measure it, […]

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Housing Starts Remain Deep in the Tank — Falling

Written by Gary North on November 18, 2011

Housing starts in October were 628,000, down from September’s revised figure of 630,000. Let’s be clear here. These are annual figures, not monthly. In 2005, the rate was over two million per year. The 628,000 included apartment houses. Single-family dwellings were 430,000. This is what people with the credit to buy want to buy. There […]

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Sweet Deal: Fannie Mae/Freddie Mac Heads Make $6m a Year

Written by Gary North on November 16, 2011

And you think a government job doesn’t pay well.  Think again. The top six executives at the two busted, bailed-out, nationalized outfits got $35 million for two years of hard, hard work. The two heads got half of that. This year, they may clear $6 million each. “Nice work if you can get it, and […]

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New World Order, Europe: Phase 2 Is Ending

Written by Gary North on November 16, 2011

The first phase began in 1951 with the creation of a free trade zone, the European Coal and Steel Community. It was apart of a long-term program, begun in 1919, to create a unified Europe. It morphed into the Common Market in 1957. The second phase began in the 1990s with the Maastricht  Treaty(1992), which […]

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Europe Faces a “Systemic Crisis,” Says Senior Eurocrat

Written by Gary North on November 16, 2011

The crisis in Europe is real. Greece is basically bankrupt. Italy teeters at the edge of default. Only intervention by the European Central Bank today pushed Italian bond rates below 7%, which threatened Italy’s solvency. Spain is also close to default. The head of the European Commission, who is Portuguese, has stated publicly that Europe […]

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Europe Is on the Knife’s Edge

Written by Gary North on November 16, 2011

There is a bank run going on. The targets are Italian banks. Rich people are selling Italian bonds and buying other assets. Italy’s debt is huge. Its bonds constitute a quarter of bonds held by European banks. Only Germany has issued more bonds — just barely. Italy has issued more bonds than France. You can […]

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Wall Street Journal Opposes the Flat Tax

Written by Gary North on November 16, 2011

The Wall Street Journal published an article opposing the flat tax. The author is Alan Blinder, a former Vice President of the Board of Governors of the Federal Reserve System. Blinder was a big supporter of the “cash for clunkers” program, which destroyed used cars at government expense. He teaches at Princeton University, where Bernanke […]

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Will Italy Default? Yes. Will This Affect You? Yes.

Written by Gary North on November 16, 2011

The idea that Italy’s government is not insolvent is silly. It is going to default. It may take a few months. It may take a year. The fact is, it is so far in the debt hole that it cannot maintain paying interest much longer. Word is slowly getting out, but just barely. Idiot bankers […]

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