Small Businessmen Remain Grimly Pessimistic.

Written by Gary North on November 15, 2011

The National Federation of Independent Business reports on business sentiment. It is bad. With 1986 as 100, October’s sentiment was 90.2. In January 2009, almost three years ago, it was 89.1. That was in the recession. This recovery is the weakest in post-Word War II history. Sentiment is a little better than in August, but […]

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Europe: Like Drunks With Hangovers and Big Bar Tabs

Written by Gary North on November 15, 2011

If you think of the European debt crisis in terms of taverns (banks), drunks (governments), and a distillery (the European Central Bank), you will begin to understand the reasons why it is getting worse. The governments are like drunks who have run up large tabs as the local tavern. Some drunks have huge tabs: the […]

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A Little Good News on Housing

Written by Gary North on November 14, 2011

Inventories of existing homes fell 16% over the last 12 months. This means that the number of sellers of homes competing with each other has fallen. This points to stabilization of prices. Problem: this does not count “shadow inventory”: repossessed homes, abandoned homes, and other non-traditional sources of housing. But this does point to some […]

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Why the Goverment Will NOT Confiscate Your Gold

Written by Gary North on November 14, 2011

People who buy gold worry because they think the government may confiscate their gold. There are reasons — a lot of reasons — to think that this fear is way overblown. For one thing, gold has no monetary function in the modern economy, except for central banks. It is not 1933, when American used gold […]

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Peak Oil? Yes. End of the World? No.

Written by Gary North on November 14, 2011

Is peak oil real? Of course. It is running out: a billion barrels every two weeks. It is not being made. The price will go higher. But this does not mean the end of the world. At some price — much higher — there will be alternatives. One of them is natural gas. Its use […]

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Government Pulls the Plug on the Unemployed

Written by Gary North on November 14, 2011

With 9% unemployment, there is little hope for getting a job for those who have been out of work over a year. They are losing skills and losing hope. Now the government checks have stopped for over 50% of them. With an election year coming, Congress may cough up another $45 billion to make payments. […]

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Gold Will Go to $3,000, Says Professor

Written by Gary North on November 14, 2011

The Establishment economists do not see this, nor did they see gold at $1,700 in 2001. But occasionally one of them changes his mind. Dr. Peter Morici did. He thinks that the turmoil in Europe’s economy will push gold higher. He thinks the problems in Europe will not be solved. I agree with him on […]

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