Oil Is Down This Summer. This Is Good News and Bad News.

Written by Gary North on June 26, 2012

The sharp decline of oil prices has been very good news for consumers. Gasoline prices have fallen. This leaves more money in family budgets. This is good news. Here is the bad news as of June 25. The biggest selling pressure came from cyclicals but was broad-based. All 10 sectors in the Standard & Poor’s […]

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Catastrophe in 2013, Says Laffer

Written by Gary North on April 3, 2012

The Bush tax reductions will expire on January 1 unless Congress and the President extend them this year. Dr. Arthur Laffer predicts that American investors will move their income into this year. Next year, the economy will “fall off the cliff.” Laffer says. In 2006, Laffer moved from California to Tennessee to escape the California […]

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Communist Victory in Greece This Spring

Written by Gary North on February 13, 2012

The news out of Greece today is that the Sunday agreement of the Greek government to the $4.4 billion austerity package will enable the government to get the next round of bailout money. This is supposed to solve the Greek crisis for now. It will not solve it for long. I spoke yesterday with a Greek […]

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A Key Economic Index Is in Freefall

Written by Gary North on January 26, 2012

The Baltic Dry Index sounds really dull. Usually, it is. Not now. This index measures freight rates for ships that transport commodities. When demand for commodities falls, less freight is shipped. But the same number of ships are competing for tonnage. So, rates fall. Demand for commodities falls as a prelude to a recession. A […]

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Tall Skyscrapers and Big Crashes: Get Ready

Written by Gary North on January 16, 2012

Did you know that there is a tight correlation between the completion of the world’s tallest skyscraper and either a recession or a depression within a year or two? Well, there is. Dr. Mark Thornton of the Mises Institute published an article on this in 2005. Worldwide, real estate peaked in 2006. Then came the […]

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If Iran Blocks the Straits, Worldwide Recession Is Sure

Written by Gary North on January 4, 2012

Iran’s leaders are talking tough about shutting down the straits of Hormuz. This may be a way for them to get the West to negotiate from a weaker position regarding Iran’s nuclear fuel program. Or it may be that Iran thinks there is an attack coming. The question is this: Will oil prices skyrocket if […]

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A Return to Gold Is Inevitable — Peter Schiff

Written by Gary North on December 7, 2011

The West’s economy is interlinked by currencies, banks, and debt. There is no island of safety. Peter Schiff has written a provocative report on how close we are to what he calls the crack-up. It’s a good thing, he says. Up until very recently, political centralization was the norm. Today, the centralized Eurozone is about […]

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Layoffs at the #3 Bank: Trouble Agead

Written by Gary North on December 7, 2011

Citigroup is the third largest U.S. bank. It plans to lay off 4,500 people. Its CEO said this: “Financial services faces an extremely challenging operating environment with an unprecedented combination of market uncertainty, sustained economic weakness in the developed economies and the most substantial regulatory changes we have seen in our lifetimes,” said Pandit, 54. […]

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Worldwide Recession, Says OECD Report

Written by Gary North on November 29, 2011

The OECD is an international organization: the Organization for Economic Co-operation and Development. It is not given to wild predictions. Recently, it issued a report that said this: If everything came to a head, with governments and banking systems under extreme pressure in some or all of the vulnerable countries, the political fall-out would be […]

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China Moves Toward Recession, as Austrian Theory Predicts

Written by Gary North on November 23, 2011

The Austrian theory of the business cycle is clear: when a central bank inflates, it will produce a boom. When it slows the rate of monetary inflation, the result is economic recession. I have written about this here. China’s central bank has been the most inflationary of any industrial nation. Now it has slowed, because […]

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