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Chinese Government Official Warns Congress: Get This Settled.

Written by Gary North on October 8, 2013

The Vice Foreign Minister of China, Zhu Guangyao, held a press conference. He told reporters that the U.S. government has a responsibility to get the issue of the debt ceiling solved before the October 17 deadline. “We ask that the United States earnestly takes steps to resolve in a timely way the political issues around […]

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Obama’s Fall-Back Position on a Default

Written by Gary North on October 7, 2013

The United States Constitution is clear: “All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.” (Article I, Section 7) If the Republicans decide not to submit a budget, the government will shut down. That is what we are being […]

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The Fake Threat: Government Default

Written by Gary North on October 4, 2013

The head of the International Monetary Fund has warned that a default on the debt of the United States government would create an international economic crisis. The Secretary of the Treasury says the same. Indeed, the entire establishment of international debt warns that the ever-growing debt of the U.S. government is central to the prosperity […]

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800,000 Federal Workers Get a Vacation.

Written by Gary North on October 1, 2013

Push has come to shove. We are told that the federal government will lay off 800,000 workers. These workers will not be paid. But is this figure right? Is it 800,000? Or 799,999? Or maybe 750,000? Or maybe 600,000? Let’s find out. This will be a good test. The laid-off workers hope that this is […]

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Jim Willie Is Dead Wrong About a Bond Market Collapse in 2014.

Written by Gary North on September 27, 2013

It is important that analysts who say that something huge is coming provide coherent evidence for such an event. Let me offer a recent example of an analyst who failed to do this. In an article by Jim Willie, whose subscription-based newsletter is the improbably titled Golden Jackass, we learn that the Treasury bond market […]

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Government-Run Bridges: Guaranteed Erosion

Written by Gary North on September 16, 2013

This AP story gets the idea across. An Associated Press analysis of 607,380 bridges in the most recent federal National Bridge Inventory showed that 65,605 were classified as “structurally deficient” and 20,808 as “fracture critical.” Of those, 7,795 were both — a combination of red flags that experts say indicate significant disrepair and similar risk […]

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Sen. Reid Says Tea Party Is Winning in the Republican Party.

Written by Gary North on September 13, 2013

Sen. Harry Reid is crying great crocodile tears for House Speaker John “TARP” Boehner. He says that Boehner is dealing with Anarchists: Tea Party members. “As I said on the floor today, the anarchists are winning. Anything that can be done to slow down, hurt or get rid of government any way, that’s good. Shutting […]

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The FED and the Bond Market

Written by Gary North on September 12, 2013

The Federal Reserve creates $85 billion a month in new money in order to subsidize mortgages ($40 billion) and U.S. government bonds ($45 billion). This is now considered normal. Any reduction in this increase is referred to as “tapering off.” FED-watchers still expect the Federal Open Market Committee (FOMC) to announce a reduction to $75 […]

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Debt Ceiling Deadline: October 18 to November 5

Written by Gary North on September 11, 2013

So messed up are the government’s books that experts don’t know when the cooked books, which have been cooked since May 17, will finally overflow onto the fiscal stove. It could be October 18. It might be as late as November 5. Officially, the federal debt has not risen by one penny since May 17. […]

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