Quote of the week
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” – Ludwig von Mises
by Anthony Gregory
“American fascism is one of a kind. Its economic system is neither free enterprise nor pure egalitarian socialism, but more akin to a buffed-up, modernized, globally dominant Mussolinian corporate state. Its militarism rivals and in many senses exceeds any of history’s fascist regimes, in power, uninterrupted belligerence, and sheer size. Its presidency is the most revered and powerful Fuhrer in world history, despite and actually due to its democratic nature. America’s racial nationalism is unusual but very real, combined with pretensions of anti-racism. Its police state enslaves and punishes, at home and abroad, in ways that would make Franco or Perón envious, even as it allows for a relatively wide range of social liberty.” more… [Wow, this is a good one.]
by Philipp Bagus
“While it is an intricate system at the first sight, one that many common citizens fail to understand, the system boils down to the following: The government spends more than it receives in taxes. The difference is financed by its friends from the financial system, accommodated by central banks. Money production sponsors politicians’ dreams, thereby destroying our currencies. The population pays in the form of a lower purchasing power of money.” more… [Another very good article that explains – with pictures – how the Fed and European Central Bank work.]
by Detlev Schlichter
“There is only one possible way out. Stop the printing of money and the artificial suppression of interest rates. Return to hard money. Allow interest rates and market prices to again reflect the true extent of voluntary savings, and to thus allow the liquidation of the accumulated imbalances from previous money expansion.
“But because we had a four-decade long period of unprecedented fiat money creation globally, these imbalances are now so big that the necessary liquidation would be very painful. The political class — which got us into this mess in the first place — would never deem it acceptable.” more…
- A patent reform bill passed the U.S. congress and makes the U.S. a “first-to-file” rather than a “first-to-invent” system.
- Swiss peg their currency to the Euro – probably good for gold.
And now the numbers…
DOW Jones Industrials – 10,992.13 (-248.13/-2.21%)
S&P 500 – 1,154.23 (-19.74/-1.68%)
VIX – 38.52 (+4.60/13.56%)
CSI 300 (China) – 2,751.095 (-52.759/-1.88%)
BSE 500 (India) – 6,582.43 (-647,225.57/-98.99%)
MICEX (Russia) – 1,518.22 (+2.33/0.15%)
BOVESPA (Brazil) – 55,778.39 (-753.23/-1.33%)
Nikkei 225 (Japan) – 8,737.66 (-213.08/-2.38%)
RICI (Commodities) – 3,922.01 (-36.79/-0.93%)
Oil/bbl (Brent) – 112.50 (+0.17/0.15%)
Corn/bu – 736.50 (-23.50/-3.09%)
Wheat/bu (CBT) – 729.75 (-45.75/-5.90%)
Rough Rice (CBOT) – 18.33 (+0.105/0.58%)
Copper/lb – 399.95 (-12.50/-3.03%)
Gold/oz – 1,858.30 (-18.60/-0.99%)
Silver/oz – 41.535 (-1.534/-3.56%)
EUR-USD – 1.3657 (-0.0548/-3.86%)
USD-JPY – 77.611 (+0.8092/1.05%)
USD-BRL – 1.6741 (+0.033/2.01%)
NZD-USD – 0.8221 (-0.026/-3.07%)
3 Month Treasury – 0.01 (-0.01/-50.00%)
2 Year Treasury – 0.17 (-0.03/-15.00%)
10 Year Treasury – 1.92 (-0.07/-3.52%)
30 Year Treasury – 3.25 (-0.05/-1.52%)
3 Month LIBOR – 0.34 (+0.01/3.03%)
U.S. Public Debt (official) – 14,685,550,385,900.00 (-11,864,403,700.00/-0.08%)
Baltic Dry Index (BDIY:IND) – 1,782.00 (+42.00/2.41%)
There’s some good stuff up there this week. I highly recommend the article on America’s unique fascism. Perhaps you have thought about these things before and it will make sense, perhaps it will challenge your beliefs. It’s long, but I think it generally makes its case pretty well. The modern nation-state is as far as I’m concerned a pretty bad idea no matter who is in charge. The concentration of so much power in so few hands just doesn’t bode well.
On the home front Little Bear has successfully used her potty for the second time. Granted it’s not happening every time, but we’re getting there. Wonderful Wife bought her a play kitchen today, which they are putting together right now. She is just so excited to play with it.
I just got over two pretty big deadlines at work this week, and so I’m definitely feeling a sense of relief.
For now it’s off to make some dinner. Tacos!
Have a great weekend.