Week in review

Quotes of the week

“Inflation is essentially a regressive consumption tax, which the government wants and the Fed attempts to ‘hide.'” – Naufal Sanaullah

“Economic history is a long record of government policies that failed because they were designed with a bold disregard for the laws of economics.” – Ludwig von Mises

“Little by little, the gravity of the situation is sinking in. The economy is weakening. But government is strengthening. Money, power…and hopes for the future…are flowing in its direction.” – Bill Bonner

The World Won’t Buy Unlimited U.S. Debt

by Peter Schiff

“Barack Obama has spoken often of sacrifice. And as recently as a week ago, he said that to stave off the deepening recession Americans should be prepared to face ‘trillion dollar deficits for years to come.’

“But apart from a stirring call for volunteerism in his inaugural address, the only specific sacrifices the president has outlined thus far include lower taxes, millions of federally funded jobs, expanded corporate bailouts, and direct stimulus checks to consumers. Could this be described as sacrificial?” more…

Stimulus for Who?

by Ron Paul

“This week the House is expected to pass an $825 billion economic stimulus package. In reality, this bill is just an escalation of a government-created economic mess. As before, a sense of urgency and impending doom is being used to extract mountains of money from Congress with minimal debate. So much for change. This is déjà vu. We are again being promised that its passage will help employment, help homeowners, help the environment, etc. These promises are worthless. This time around especially, Congress should know better than to pass anything of this magnitude without first reading the fine print. There a many red flags that I have found in this bill.” more…

Enemies of Capitalism

by Briggs Armstrong

“New Rule: neomercantilists, neoconservatives, and statists are no longer allowed to call themselves ‘free marketers.’ People who call themselves free marketers such as Bush, Paulson, Greenspan, and Bernanke are the primary threat capitalism faces. These false prophets of capitalism are the greatest friends that proponents of socialism have.” more…

End of the War on Terror

by Philip Giraldi

“[T]he war on terror as seen by Washington and a complaisant US media is the ultimate money and power machine, requiring a huge military and intelligence commitment that is endless and not confined to any part of the world. As terror has no capital city or national identity the war against it cannot end through capture and surrender. As it is a secret war, it can be waged using unconventional methods, without regard for the deaths of civilians who are seen as “sheltering” the terrorists, guaranteeing that the blood of the innocent will produce new generations raised hating America. The bleeding will continue forever and everywhere as long as there are terrorists, justifying government intrusion into the lives of the citizens at home and huge and unsustainable budgets to wage the war worldwide. It is George Orwell’s dark vision of 1984 turned into reality. Tyranny and bankruptcy will be the war on terror’s legacy.” more…

The Scam Bill

by DownsizeDC.org

“We cannot make this point often enough. The new Democratic majority is doing exactly what the Republicans did before them, exploiting a crisis to perpetrate a scam. … The politicians — just a few hundred people — think they can spend a trillion dollars better than 300 million Americans could. We don’t think anyone is that smart, especially people who excel at politics, which is a profession of exploitation and manipulation. ” more…

In the news…

  • A collection of editorial cartoons from last week. This should become a regular feature.
  • The political hot potato that is China’s currency is being tossed around at the IMF.
  • The auto part suppliers are looking for a $10 billion bailout. And it goes on and on and on and it goes on and on it goes…
  • Obama’s “economic” advisors, more like malinvestment advisors, say that the $700 billion of TARP money may not be enough to bailout the banks. Nancy Pelosi says taxpayers (read government) should have an equity stake in the banks. So maybe we’ll have a partial nationalization. Uggg…
  • A new law would require that all camera phones click when they are taking a picture. Just another junk law being considered by the 434 pieces of human trash on capital hill. Yes, there is one person on capital hill who is not a piece of human trash. Any guesses to whom that might be?
  • The IMF and World Bank think (think seems like the wrong word as the word implies logic) that the nations of the world need to enact a global stimulus. The logic (again, seems like the wrong word) goes something like this, too much debt has caused a major problem, let’s have more debt!
  • Marijuana could prevent Alzheimer’s.
  • Freddie Mac is stepping back up to the trough. This time it is asking for $35 billion.
  • The dullard house passed the “stimulus “ bill. Here are some details. Ooooo stimulate me baby!
  • Russia and Chinese leaders lecture the west.
  • German Chancellor proposes U.N. Economic Council, to be modeled on the U.N. Security Council. Because we need another large unaccountable organization meddling in our personal affairs.


  • Denis Kucinich calls for nationalizing the Federal Reserve on the House floor, which as you all should know by now is a PRIVATE bank that needs to be abolished.

And now the numbers…

DOW Jones Industrials – 8,000.86 (-76.70/-0.95%)
Wilshire 5000 – 8,519.06 (+133.93/1.60%)
CSI 300 (China) – 2,032.68 (UNCHG)
BSE 500 (India) – 3,426.76 (+222.28/6.94%)
MICEX (Russia) – 624.90 (+71.28/12.88%)
BOVESPA (Brazil) – 39,300.79 (+1168.44/3.06%)
Gold/oz – 927.30 (+29.60/3.30%)
Silver/oz – 12.565 (+0.625/5.23%)
Copper/lb – 1.4685 (-0.0035/-0.24%)
Oil/bbl (Brent) – 45.88 (-1.58/-3.33%)
Wheat/bu (CBT) – 5.68 (-0.1475/-2.53%)
Corn/bu – 3.79 (-0.115/-2.94%)
Dollar/Euro – 1.2815 (-0.0156/-1.20%)
Yuan/Dollar – 6.8305 (-0.0047/-0.07%)
Yen/Dollar – 89.95 (+1.17/1.32%)
Dollar/Real – 0.4318 (+0.0018/0.42%)
3 Month Treasury – 0.23 (+0.13/130.00%)
2 Year Treasury – 0.95 (+0.14/17.28%)
10 Year Treasury – 2.84 (+0.22/8.40%)
30 Year Treasury – 3.60 (+0.28/8.43%)
Fed Target Rate – 0.25 (UNCHG)
U.S. Public Debt – 10,626,297,420,130.80 (+7,578,716,756.00/0.07%)
Baltic Dry Index (BDIY:IND) – 1,070.00 (+125.00/13.23%)

I know that I keep harping on this, but please consider reading Economics in One Lesson. It’s a short (200 pages) straightforward explanation of economic phenomena. There are no complicated charts or equations. It’s just plain old logic applied to the economy. Amazon has used copies for seven bucks. And I don’t even make any money if you click the link!!!

Did anyone see all of the job cut announcements this week? Yikes!!! I was going to link to all of them, but two things prevented me from that: (1) It was going to be really hard to track them all down! (2) It would have been a very depressing task to do so. So I didn’t do it. Suffice to say there were a bunch. In the guise of “doing something” the government will make this worse before its over. How much worse remains to be seen.

A three part series called Foundations of Crisis takes an interesting look at the pattern of once a century mega-crises.

Okay, enough of that. The Super Bowl is this weekend! I’m rooting for Arizona and I think they have a legitimate chance at it. Of course I’ve got no money on the game, so take my opinion for what it’s worth… Right, nothing. Have a great weekend!

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