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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Why Oil Prices Are Headed Far Higher

Written by Gary North on November 16, 2011

The idea that the USA can ever become oil independent is a myth. The US has lots of coal and natural gas. It does not have much oil. The recession hit US oil consumption like a sledgehammer after 2007. Meanwhile, there has been a slight uptick of oil production in the US. But there is […]

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The Pain in Spain: Bond Prices Fall Sharply

Written by Gary North on November 16, 2011

We have read about Greece. It is obviously gong to default on its loans. The Eurocrats are pouring hundreds of billions down a rat hole to provide the Greek government with money to pay interest on its huge debt. They will pour lots more. Italy is heading in the same direction. Its bond prices are […]

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In Need of Repairs: Profits Collapse at Lowe’s

Written by Gary North on November 16, 2011

Profits at Lowe’s, one of the two major home repair suppliers, fell by 44% in the third quarter. Lowe’s sells to customers who are improving their lifestyle by upgrading their homes. This is necessary when selling a home. But homes are still not selling. Owners are out of money to make repairs. They sense that […]

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Why We Will NOT Get Hyperinflation, Unless. . . .

Written by Gary North on November 15, 2011

Hyperinflation is triple-digit annual price inflation. I think it’s anything above 25%. Mass inflation is anything above 15% but below 25%. We are going to get mass inflation. We are not going to get hyperinflation. Why am I so “optimistic”? Because I see that the Federal Reserve Chairman Ben Bernanke is now caught in a […]

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God, Gold, Groceries, and Guns

Written by Gary North on November 15, 2011

These are the Big Four. I first wrote about this in 1980. Most of the time, we muddle through. We bump along. But a wise person has reserves. I mean reserves in the broadest sense. Faith in God is more reliable than faith in gold. As for groceries, they are cheap, especially for wise shoppers […]

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These PIIGS Won’t Fly: Goodbye Euro

Written by Gary North on November 15, 2011

The official New World Order party line in Europe is this: (1) the euro will survive; (2) the eurozone will prosper; (3) the European Union is forever. None of this is true. When Greece defaults and leaves the eurozone — or is booted out — the experiment will unravel. This was the grand experiment of […]

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