Infinite Unknown

From the article:

“Since Mr. Krugman tells us all this spending and debt issuance/guarantees are not only good and necessary but in the long run, painless, why are we bothering with personal income taxes?

The US government will collect approximately $2.0bn this year in Personal Income and Payroll taxes.  But why?  Why are we even bothering with this when today’s leading economists and politicians are telling us that debts/deficits don’t matter and running up astronomical debts is a long-term painless process?  It’s practically patriotic.  So why shouldn’t we just add our tax burden to the list of items the Fed should be monetizing?  Seriously.  Why not relieve the burden on every tax paying citizen in the United States (about 53% of us according to Mitt Romney)?  You want an economic recovery?  Reduce my taxes to zero and see how fast I go out and start spending some of that extra income.”

Submitted by Lucas Jackson

Thought Experiment: Why Do We Bother Paying Personal Taxes?

“Stupidity combined with arrogance and a huge ego will get you a long way.”
- Chris Lowe

I will admit right up front, I am not a fan of the views of Paul Krugman.  If Paul Krugman was to be given his way – and by and large he is being given his way – my children and grandchildren will be burdened in the future with paying back untold amounts of public debt just so his life and the lives of countless other Boomers can remain comfortable and embarrassment free today.

This is the essence of his grand plan for a US recovery – MOAR and MOAR debt.

Wow.  Genius.  Why I didn’t I think of that?  Just keep borrowing and printing, borrowing and printing.  Got it.  Now that I understand it, do I get a PhD?

Who’s going to pay the money back?  How will it effect future generations?  How will it effect the markets?  What will this do to civil society?

Continue reading »

Tags: Barack Obama, Bonds, Debt, Economy, Fed, Federal Reserve, Government, Keynesianism, Paul Krugman, Politics, Quantitative Easing, Society, Taxes, Taxpayers, U.S.

- Schiff: We’re Heading For A Crisis Worse Than 2007 (Money Morning)

Tags: Barack Obama, Bonds, Collapse, Debt, Economy, Fed, Federal Reserve, Global News, Government, Obama administration, Peter Schiff, Politics, Society, Stock Market, U.S.

- 40 Statistics About The Fall Of The U.S. Economy That Are Almost Too Crazy To Believe (Economic Collapse, May 26, 2013):

If you know someone that actually believes that the U.S. economy is in good shape, just show them the statistics in this article.  When you step back and look at the long-term trends, it is undeniable what is happening to us.  We are in the midst of a horrifying economic decline that is the result of decades of very bad decisions.  30 years ago, the U.S. national debt was about one trillion dollars.  Today, it is almost 17 trillion dollars.  40 years ago, the total amount of debt in the United States was about 2 trillion dollars.  Today, it is more than 56 trillion dollars.  At the same time that we have been running up all of this debt, our economic infrastructure and our ability to produce wealth has been absolutely gutted.  Since 2001, the United States has lost more than 56,000 manufacturing facilities and millions of good jobs have been shipped overseas.  Our share of global GDP declined from 31.8 percent in 2001 to 21.6 percent in 2011.  The percentage of Americans that are self-employed is at a record low, and the percentage of Americans that are dependent on the government is at a record high.  The U.S. economy is a complete and total mess, and it is time that we faced the truth.

The following are 40 statistics about the fall of the U.S. economy that are almost too crazy to believe… Continue reading »

Tags: Bonds, China, Collapse, Debt, Economy, Fed, Federal Reserve, Food stamps, GDP, Government, Mexico, NAFTA, Obama administration, Politics, Social Security, Society, U.S., Wal-Mart

YouTube Added: 24.05.2013

Tags: Barack Obama, Ben Bernanke, Bonds, Collapse, Constitution, Debt, Dollar, Economy, Fed, Federal Reserve, Global News, Gold, Gold Standard, Government, Hyperinflation, Hyperinflationary Depression, Inflation, Jim Rickards, Law, Obama administration, Peter Schiff, Politics, precious metals, Quantitative Easing, Silver, Utah

- The Biggest Market Sell-Offs in History (ToTheTick, May 23, 2013):

As stock markets are poised to open or close around the world and we see exactly what damage has been done to the major indexes due to the Chinese fake-data scandals that have come to light coupled with the Federal Reserve’s monetary policy meeting, we are waiting with baited breath: Buy! Buy! Buy! Or: Sell! Sell! Sell! Whichever way we turn, someone is bound to make money somewhere in the world out of all of this. Isn’t that why we are in this business?The Nikkei dropped by 7.3% at the end of the day and Hong Kong’s Hang Seng dipped by 2.5%. Shanghai maintained a moderate fall at just 1.2% (if you believe that data now!). The Asian markets are down. How will the Europeans fare? They are already declining this morning. The CAC 40 is down already 2.32%. The FTSE 100 is down 1.94% so far this morning. The DAX is posting a 2.64%-decrease.

Plus, when the Bureau of Labor Statistics in the US will announce its unemployment figures this morning and tell us what the damage is. The Federal Reserve didn’t manage to allay fears as Ben Bernanke publicly stated that he wouldn’t be pulling the plugs on the stimulus program, but which was later contradicted by the minutes telling the full story that if the recovery shows through, then we will be pulling money out by June. That’s too soon for some. Are we in for another rocky ride?  Maybe. You can never tell, really.  But, if we look back in history, then we can see the worst stock market crashes that have taken place and why.

Here’s the ranking. Chronological order! Continue reading »

Tags: Bonds, China, Debt, Economy, Fed, Federal Reserve, Global News, Quantitative Easing, Stock Market

- As Of This Moment Ben Bernanke Own 30.5% Of The US Treasury Market… And Will Own All By 2018 (ZeroHedge, May 23, 2013)

Tags: Ben Bernanke, Bonds, Debt, Fed, Federal Reserve, Global News, Government, Politics, Quantitative Easing

- Japan Has Officially Gone Insane (ZeroHedge, May 23, 2013):

On one hand:

• BOJ OFFERS TO BUY 300B YEN DEBT WITH MORE THAN 10YR MATURITY
• BOJ OFFERS TO BUY 600B YEN IN 5-10YR GOVT DEBT

and on the other

• ABE SAYS BOJ ISN’T DIRECTLY BUYING GOVERNMENT DEBT

We give up: raging schizophrenia and a sado-maso fetish is now a core prerequisite for anyone who wishes to follow the daily lies these central planning sociopaths spew with impunity.

Tags: Bank of Japan, Bonds, Central Bank, Debt, Global News, Government, Japan, Shinzo Abe

- Will It Be Inflation Or Deflation? The Answer May Surprise You (Economic Collapse, May 22, 2013):

Is the coming financial collapse going to be inflationary or deflationary?  Are we headed for rampant inflation or crippling deflation?  This is a subject that is hotly debated by economists all over the country.  Some insist that the wild money printing that the Federal Reserve is doing combined with out of control government spending will eventually result in hyperinflation.  Others point to all of the deflationary factors in our economy and argue that we will experience tremendous deflation when the bubble economy that we are currently living in bursts.  So what is the truth?  Well, for the reasons listed below, I believe that we will see both.  The next major financial panic will cause a substantial deflationary wave first, and after that we will see unprecedented inflation as the central bankers and our politicians respond to the financial crisis.  This will happen so quickly that many will get “financial whiplash” as they try to figure out what to do with their money.  We are moving toward a time of extreme financial instability, and different strategies will be called for at different times.So why will we see deflation first?  The following are some of the major deflationary forces that are affecting our economy right now… Continue reading »

Tags: Bonds, Collapse, Debt, Deflation, Economy, Fed, Federal Reserve, Global News, Gold, Government, Great Depression, Inflation, Money, Politics, Silver, Society, Warren Buffett

- Four Signs That We’re Back in Dangerous Bubble Territory (Peak Prosperity, May 21, 2013):

Stocks, bonds – everything – at risk

…

Tags: Bonds, Bubble, Collapse, Debt, ECB, Economy, EU, Europe, Fed, Federal Reserve, GDP, Global News, Greece, Japan, Paul Krugman, Stock Market, Unemployment

- America’s Bubble Economy Is Going To Become An Economic Black Hole (Economic Collapse, May 22, 2013):

What is going to happen when the greatest economic bubble in the history of the world pops?  The mainstream media never talks about that.  They are much too busy covering the latest dogfights in Washington and what Justin Bieber has been up to.  And most Americans seem to think that if the Dow keeps setting new all-time highs that everything must be okay.  Sadly, that is not the case at all.  Right now, the U.S. economy is exhibiting all of the classic symptoms of a bubble economy.  You can see this when you step back and take a longer-term view of things.  Over the past decade, we have added more than 10 trillion dollars to the national debt.  But most Americans have shown very little concern as the balance on our national credit card has soared from 6 trillion dollars to nearly 17 trillion dollars.  Meanwhile, Wall Street has been transformed into the biggest casino on the planet, and much of the new money that the Federal Reserve has been recklessly printing up has gone into stocks.  But the Dow does not keep setting new records because the underlying economic fundamentals are good.  Rather, the reckless euphoria that we are seeing in the financial markets right now reminds me very much of 1929.  Margin debt is absolutely soaring, and every time that happens a crash rapidly follows.  But this time when a crash happens it could very well be unlike anything that we have ever seen before.  The top 25 U.S. banks have more than 212 trillion dollars of exposure to derivatives combined, and when that house of cards comes crashing down there is no way that anyone will be able to prop it back up.  After all, U.S. GDP for an entire year is only a bit more than 15 trillion dollars.

But most Americans are only focused on the short-term because the mainstream media is only focused on the short-term.  Things are good this week and things were good last week, so there is nothing to worry about, right?

Continue reading »

Tags: Bill Gross, Bonds, Bubble, Collapse, Debt, Derivatives, Derivatives market, Economy, Fed, Federal Reserve, GDP, Global News, Japan, PIMCO, Stock Market, U.S., Wall Street