Week in review

Quote of the week

“The land of free markets and free men has become the land of the free lunch. Wall Street hustlers can make billions in bonuses – when the sun shines. As soon as it begins to rain, the losses are handed out to the general public. What kind of capitalism is this?” -Bill Bonner

The Social Imperative of Sound Money

by Lew Rockwell

“Think about the preconditions that made it possible for the Bush administration to decide one evening to dump a trillion plus to guarantee three-quarters of the home mortgages in this country. It is a system that is premised on the government’s capacity to print unlimited amounts of money.

“If it could not do that, no one would be talking about conservatorship. No one would be talking about guaranteeing the liabilities of the automotive industry either. War on Afghanistan, on Iraq, on Russia, and troops in another 100 plus countries, would be out of the question. These wouldn’t be issues. If government had to tax people directly for all its spending priorities, we would see Washington’s ambitions in every area scaled back dramatically. Every suggestion of a new program would be met with the demand as to how it would be funded.” more…

Topsy Turvy Government Policy

by The Mogambo Guru

“Fixated as I am on inflation in prices because it scares The Living Hell (TLH) out of me, I was drawn to how Peter Schiff of Euro Pacific Capital was amused that the government and its minions have reported that ‘the GDP deflator, used in the report to downwardly adjust GDP to account for inflation, was shown at just 1.2% annualized…the lowest deflator in ten years’, while at the same time ‘the latest reading on consumer prices (CPI) in the second quarter shows year-on-year inflation running at a 5.6% rate, a seventeen-year high!’

“He asks, without the slightest hint of the venomous sarcasm you would expect, ‘How can it be that inflation is simultaneously running at a seventeen-year high and a ten-year low? Welcome to the Alice in Wonderland world of government statistics.'” more…

Gold vs. Debt: The Death of Paper Money

by Douglas V. Gnazzo

“Today we are witnessing why in paper fiat-land debt is a four letter word; and a nasty one at that. The only thing the Federal Reserve has accomplished since its creation in 1913 is the loss of 95% of the dollar’s purchasing power; and they are hard at work destroying what little is left. Incompetence does not even begin to describe their actions.” more…

In the news…

  • A brain scanner that verifies whether a person experienced or committed an act has been used to prove an Indian woman guilty of murder this week.
  • Another one bites the dust, err make the two, err make that three – Lehman Bros declares bankruptcy, while Merrill Lynch is taken over by Bank of America, and AIG has been nationalized. Ouch. We got a freaking trifecta this week. So given that it looks to be time to break out the printing press.
  • “Photo ticket cameras to track drivers nationwide.” Those red light cameras were just the beginning.
  • And the circus with Russia continues…
  • The BBC reports that “US officials are working on a plan to help rid US banks of their bad debts in order to tackle the devastating global financial crisis.” Bloomberg has more details. Wonder how many more hundreds of billions they are going to print, or how many more companies are going to be nationalized? You got to love the creeping fascism. I mean we have it all – the myth (that we’re free), the endless war, and the shameless take over of industry by government. Okay, sure maybe we’re the freest people in the world, but we ain’t getting no freer, nor are we as free as we were 100 years ago. Sad thing is that most people don’t even give a crap. Please consider joining the Campaign for Liberty.
  • On the election front it seems McLame and Balamba have missed the filing deadline in Texas and that Bob Barr is trying to have them removed from the ballot.

And now the numbers

DOW Jones Industrials – 11,388.44 (-33.55)
Wilshire 5000 – 12,882.14 (+117.26)
CSI 300 (China) – 2073.11 (- 4.74)
BSE 500 (India) – 5336.02 (-93.79)
MICEX (Russia) – 1098.95 (-38.81)
BOVESPA (Brazil) – 53,055.38 (+662.52)
Gold/oz – 864.70 (+100.20)
Silver/oz – 12.475 (+ 1.68)
Copper/lb – 3.1765 (-0.0175)
Oil/bbl (Brent) – 99.85 (+ 2.27)
Wheat/bu (CBT) – 7.18 (-0.0125)
Corn/bu – 5.4225 (- 0.21)
Dollar/Euro – 1.4469 (+0.0237)
Yuan/Dollar – 6.8305 (-0.0025)
Yen/Dollar – 107.45 (-0.495)
Dollar/Real – 0.5478 (-0.0145)
3 Month Treasury – 0.95 (- 0.52)
2 Year Treasury – 2.17 (- 0.03)
10 Year Treasury – 3.81 (+ 0.09)
30 Year Treasury – 4.38 (+ 0.07)
Fed Target Rate – 2.00 (UNCHG)
U.S. Public Debt – 9,664,631,803,259.07 (-17,485,193,034.77)

I received a call from someone conducting a Presidential election poll. The question was, “if the election were held today who would you vote for, press 1 for John [McLame], 2 for [Balam Balamba] and 3 if you are undecided.” I am most assuredly NOT undecided. I will not vote for either one of those losers. So I pushed “4”. It’s just another example of how the system is entirely rigged, though I suppose many of you didn’t need another….

For what it’s worth I heard a rumor that Joe Biden will drop out as Balamba’s VP and that Hillary will step up to fill his shoes. I say take it with a grain of salt.

So I have one question, where were you when the United States embraced a socialist-fascist regime? I was driving down Packard Road in Ann Arbor. I had just retrieved my wife’s purse from a Chinese restaurant from where she had left it. It was a Saturday evening. I heard that Fannie Mae and Freddy Mac had been nationalized. And I thought that was bad. After this week I’m practically speechless.

Anyway, let’s leave all of that depressing stuff behind. The Broncos squeaked one out against the Chargers Sunday, primarily due to a horrible call, but you know what, a win is a win and we’re 2 and 0. Not a bad way to start the season. New Orleans is up next.

And yeah I know I quote Bill Bonner a lot, but damn he’s good!

Have a great weekend!

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