from RJ Matson, NY Observer Hat Tip: Ritholtz, The Big Picture

Goldbugs have long-believed that central banks try to manipulate the price of gold, i.e. dumping gold onto the market at certain times to keep the price down, then slowly re-acquiring it after the spike passes, etc. But in an era where the goldbugs are predicting $2000/oz and higher (I’ve seen predictions of $5000/oz), I don’t [...]

Just 247 days after topping $ 11 trillion and 414 days since passing the $ 10 trillion mark, America’s national debt is now above the eye-popping level of twelve trillion dollars: It’s another record-high for the U.S. National Debt which today topped the $12-trillion mark. Divided evenly among the U.S. population, it amounts to $38,974.34 [...]

When Ludwig von Mises first arrived in the United States after escaping from Nazi Europe, and pretty much up until the present day, he was essentially ignored by the mainstream economics community in the United States. It was only through the assistance of American businessmen that he was able to get a job teaching at [...]

Back in July, I sent letters to Barbara Boxer and Dianne Feinstein urging them to support or even cosponsor S.604, the Audit-The-Fed bill. I received the typical mealy-mouthed responses (posted below after the fold), and like a bad blogger I never actually mentioned the responses here. How mealy-mouthed was Boxer’s response? Well, THIS was the [...]

It seems improbable that monetary policy could become a “sexy” political topic, but Ron Paul has done it. It started during his 2008 Presidential campaign when he continually talked about the Federal Reserve when asked about the economy, continued through his oft-entertaining interrogations of Fed Chairman Ben Bernanke, and most recently has culminated his sponsorship [...]

The Fed is tasked with the dual goals of price stability and restraining inflation. Folks like myself would suggest it hasn’t done a very good job of either, but that’s not crucial to the question of whether we should be able to determine how they’re attempting to fulfill their mission. Particularly irksome when we’re talking [...]

Obama says that he won’t sign a healthcare bill that adds one dime to the deficit. I hope he’s right about that, because the people who are financing that deficit are a tad bit worried about the prospect: And yet, there was budget director Peter Orszag rushing to a lunch with Chinese bureaucrats on a [...]

“Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren, America has a debt problem and a failure of leadership.” — Senator Barack Obama (Ill), 2006 We need to raised the debt ceiling above $ 12 Trillion. — President Barack Obama, 2009.

The spike in car buying has caused automakers to ramp up production (via John Stossel): Many auto industry analysts and dealers expect sales volumes to fall now that the program is over. They worry that many people who took advantage of the program were merely accelerating purchases they would have made later in the year. [...]

Continuing his George Costanzaesque presidency, Obama has decided to reappoint Ben “Helicopter” Bernanke to another term on the Fed. Here’s what Obama had to say: Ben approached a financial system on the verge of collapse with calm and wisdom; with bold action and outside-the-box thinking that has helped put the brakes on our economic freefall [...]

CNS News provides the following quote (emphasis added) from Vice President Joe Biden: “And folks look, AARP knows and the people with me here today know, the president knows, and I know, that the status quo is simply not acceptable,” Biden said at the event on Thursday in Alexandria, Va. “It’s totally unacceptable. And it’s completely unsustainable. [...]

I’m at a loss. I don’t know what world can justify this, and can only hope that my readers will be just as appalled as I am, because I have nothing to add. WASHINGTON (AP) — Former Treasury Secretary Henry Paulson testified on Thursday that he pressured Bank of America Corp. last year to go [...]

Below is the text of a letter I’ve sent to Senators Barbara Boxer and Dianne Feinstein. H.R. 1207 (introduced by Ron Paul) and S. 604 (introduced by Bernie Sanders) is a bill that requires the Comptroller General to audit the Fed and report back to Congress within the next 18 months. Given that the only [...]

Pope Benedict XVI has decided to wade into territory which he has no understanding or expertise: the global economy. The New York Times reports that the pope is now calling for a “New World Economic Order”* VATICAN CITY — Pope Benedict XVI on Tuesday called for a radical rethinking of the global economy, criticizing a [...]

Since Barack Obama has decided to continue down the path George Bush started down,  the path of Robert Mugabe and Friedrich Ebert, the United States economy will soon be facing all the problems associated with inflation. Unfortunately, the effects of inflation are poorly popularized, meaning that most people have a very limited understanding of inflation.  [...]

California’s in a world of hurt, exacerbated by the fact that we didn’t offer to give the state a whole bunch more money during our ballot propositions yesterday. There are a lot of reasons for our pain, but it really comes down to a state that never quite understood TANSTAAFL. They’ve been sold the lie [...]

I disagree with Schiff on hyperinflation; but we’re DEFINITELY going to be seeing significant inflation. I’m thinking 1979 levels or so. Note: Schiff is also a firm believer in the inherent value fallacy; which is just that, a fallacy. There is no such thing as a stable currency, because nothing has inherent value. All value [...]