Nov 18 2015

What the heck? U.S. Public Debt up $518 billion in November alone: U.S. debt ceiling made of toilet paper.

You might remember that back in March, we hit our debt ceiling limit.  The amount registering on the U.S. Treasury Department website was stuck at roughly $18.15 trillion.  Of course given our addiction to spending and debt, we simply charged all new spending off the books.  We as a country have a deeply rooted addiction […]

Jun 4 2014

Central banks and a global soft default: Current interest payments on public debt now exceed $415 billion per year. In 2000 $1 trillion in Fed debt was held by foreigners while today it is up to $6 trillion.

Global central banks are fully addicted to the opiate of debt. The financial system has created a rentier class that chases investment yield even when the economy isn’t necessarily growing. Think about that for a second. Why should someone expect a guaranteed return at any point in an economic cycle if the real economy is […]

Oct 12 2013

The US cannot avoid a soft default even if a hard default is avoided: Debt ceiling already breached and US Treasury operating in emergency mode while US is paying $415 billion in annual interest expenses.

All the talk has shifted from the government shutdown to the US actually defaulting on outstanding debts.  The markets were in deep fear but the last couple of days rumors that the debt ceiling would be raised put the rocket boosters on the stock market.  Of course, the majority of Americans have little money in […]

Oct 17 2011

The chastisement of the American saver – Federal Reserve offers a higher interest rate to banking reserves than too big to fail banks offer American savers.

Americans are facing a banking system that is largely designed to go against their best economic interest.  Even a decade ago people were able to find a savings account or a certificate of deposit that would keep up with the rate of inflation.  Today, most typical savings accounts at too big to fail banks offer […]

Oct 6 2011

How investment banks turned housing and student loans into a toxic and financial disaster – Middle class largest asset coopted by banking sector to raid and speculate on. Financial sector nearly 30 percent of all corporate profits in U.S. In the 1950s it was under 10 percent.

Most Americans pull their net worth from their investment in good old housing.  It is the biggest purchase most will ever make.  And because of this, after the Great Depression, housing was a boring yet stable investment class.  It had to be.  This is the cornerstone of wealth for most Americans.  Banks used to do […]

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