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A Dangerous Misunderstanding of Debt

Debt is not a guarantee of future payments in full. Rather, it is a risk that creditors take, in hopes of maybe being paid tomorrow. The key word there is “risk.” If you’re willing to take the risk, you’ll get a premium — in the form of interest. But the downside of that risk is…

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Greece Rejects Central Banksters

Greece has voted to reject the “troika’s” bailout terms. The people of Greece said “no” to the central banksters who encourage sovereigns to enslave themselves under mountains of debt. The Greeks showed remarkable courage and resiliency, and their example could disrupt the entire international banking system. Tyler Durden at Zero Hedge: The Greek people have…

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Insane: Stocks Markets Rally On Economic Disasters

Eurozone’s economy is basically in recession. Walmart lowered expectations. Again. The world is teetering on the edge of World War. The US is launching Iraq War 3.0: Mission Accomplished Accomplished. Germany’s economy is flat, and Italy and France are getting worse. Risk is high. Corporate debt is staggering. The Fed’s balance sheet is a sea…

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Are We Watching The Central Bank Era End?

Are they going to peg all the banks? Why, they could buy ground and build a new Mississippi cheaper. They are pegging Bulletin Tow-head now. It won’t do any good. If the river has got a mortgage on that island, it will foreclose, sure, pegs or no pegs. — Mark Twain quoting Uncle Mumford, Life on…

3 Points on the Pope’s Economics **Update**

Last week, Pope Francis all but denounced free market capitalism as a sin. Luckily, he wasn’t speaking from the Seat of Peter, but from his own misguided view of the world. Much of Francis’s statement gives important and honest direction to a world consumed with fame and money. The Pope is right in decrying systems in…

Government Planning Is Killing the Economy

Friedrich Hayek warned more than half a century ago that central planning doesn’t work. Here’s why: Central Planners (government) makes a plan The plan includes specific expectations The expectations are never, ever, realized A “crisis” ensues So the planners demand more control And create more plans Ad hoc Willy nilly Capriciously So you must wait for things…