Archive for December, 2010


Swap Line Strategy – Saving the Euro to Save the Dollar

American Monetary AssociationIn a perfect world, European financial problems would stay in Europe, Japan’s would stay in Japan, Canada’s would stay in Canada, and so on and so forth … but today’s interwoven world economy will have none of that. An economic crisis brewing elsewhere in the world is sure to be lapping against American shores before long.

Read More...
AMA

Are You or Aren’t You Printing Money, Mr. Bernanke?

American Monetary AssociationPrinting legal currency for use in the American economy is kind of a big deal, so it strikes us as deceptive when the the chairman of the Federal Reserve can’t seem to get his answers right to the basic question: Are you or aren’t you printing money, Mr. Bernanke? To get even more specific, is the Fed creating money out of thin air to finance the massive bond buying spree designed to resuscitate the economy? Let’s take a look at the words coming out of both sides of Helicopter Ben’s mouth.

Read More...
AMA

The Not-So-Boring Definition of Money Supply

American Monetary AssociationThe term money supply is one of those phrases that, when uttered at a dinner party, is likely to trigger mass narcolepsy. Not been sleeping well lately and want to try an alternative to counting sheep? Imagine Alan Greenspan whispering the words “money supply” into your ear over and over. You’ll be asleep soon, friend. Well, either that or on a dead screaming run from the bedroom to the nearest phone to alert police about the presence of an intruder. Former Fed Chairman or not, he’s got no business breaking into your house like that.

Read More...

Socialist Utopia Sweden Considers Banning Cash

Good old Sweden can always be counted upon to create a gag reflex in the throats of freedom loving capitalists everywhere. Earlier this year, that country’s Work Environment Authority (another mindless bureacracy that exists for the main goal of perpetuating itself) issued a report suggesting it might be a good idea to ban cash in […]

Read More...

Wikileaks Assange – Traitor or Hero?

Wikileaks founder, Julian Assange, probably feels like he kicked a hornet’s nest these days. More than a few US politicians and media mopheads believe he should be charged with treason or outright targeted for government sanctioned assassination. He certainly must have done something evil and heinous to draw that kind of ire. Well he did; […]

Read More...

Treasury Bonds Mired in Eisenhower Flashback

The last time treasury bonds yielded such a pitiful return as they do now Elvis Presley was singing “Heartbreak Hotel” and President Dwight Eisenhower beat Adlai Stevenson for a second term in office. The year was 1956 and the average ten-year bond brought 3.02% on economic gains of 1.8%, consumer price gains of 3% and […]

Read More...

We Created the Ineffectual Enemy OPEC

OPEC stands for Organization of Petroleum Exporting Countries and has been something of a thorn in the side of America, in the view of many, for a good long time now. At least since the oil embargo of the mid-1970’s. If only it were so easy to pin the blame for our energy woes on […]

Read More...

Absence of Pandemonium Proves Decentralized Prices Work

The commies and socialists would love to have us believe that it would be a far better use of resources to institute price controls on goods set by a central authoritarian government. If that’s the case, why does history reveal that communist countries have long found it difficult to meet even the very basic needs […]

Read More...

Fed Gives $9 Trillion in Emergency Bank Loans

We all knew about the $700 billion in bailout money given by the federal government to failing financial institutions in the midst of the recent crisis, but it turns out that was just chump change compared to what the Federal Reserve was doing at the same time with a mind boggling $9 trillion in emergency […]

Read More...

Interest Rates and the Weather

While it might sometimes seem to be to the contrary, interest rates are not pinned to the back of a passing storm front, left free to wander hither and yon, directed not by the hand of man or beast. Actually there is an alleged plan behind what sometimes seems to be the infinitesimal and random […]

Read More...

How the Government Establishes the Unemployment Rate

You can’t be faulted for assuming that an unemployment rate of 9.4% means exactly what it seems to on the surface, that almost ten percent of people in the country who want to work cannot. Well yes and no. As with all government generated statistics, the end result is often not as accurate as one […]

Read More...

Nook eReader Perfect for Classic Financial Policy Reading

The world of reading is changing in front of our eyes. The long anticipated arrival of the digital revolution for book readers is here in the form of such devices as the Nook from Barnes and Noble, Kindle from Amazon, and a half dozen other devices hoping to score a share of this booming market. […]

Read More...

How the US Dollar Came to be a Fiat Currency

Fiat – “An arbitrary order or decree.” Sometimes an organization (AMA is one) that spends its time throwing around lofty phrases like fiat currency should step down off the soapbox for a moment to define exactly what we’re talking about. In modern terms, a fiat currency is one that has no real value to back […]

Read More...

Bono Hasn't Been Minding Ireland's Economy

We can’t fault U2 lead singer, Bono, for his relentlessly public mission, over the decades, to improve living conditions in some of Africa’s poorest countries. The man wears his heart and politics on his sleeve and there is certainly nothing wrong with that but, as a born and raised Dubliner, we wonder if he’s noticed […]

Read More...

What Exactly is Quantitative Easing 2?

The term Quantitative Easing 2, or QE 2, has been bandied about in financial and investing circles so much lately that we can’t pretend it doesn’t exist. We were hoping it would disappear from public consciousness, never actually happen, and we wouldn’t have to waste any more of our precious mental resources thinking about. If […]

Read More...

How Do You Turn High Unemployment into SUPER High Unemployment?

Well the obvious answer to that question is: Hand the reins of power over the world’s most famous community organizer. Lest you try to ascertain exactly what high unemployment has to do with our stated mission of providing a sound monetary education to those who may have missed it in school, there is nothing more […]

Read More...

Low Job Creation Could Spur More Federal Reserve Bond Buys

The Federal Reserve, a PRIVATE banking interest in the United States has sort of committed to buying as much as $600 billion in US government bonds if the unemployment number stays too high or the economy fails to respond, however one or the other of the entities involved decides to define that. The Fed’s stance […]

Read More...

Remember When Only Property Owners Could Vote?

Recent comments by Tea Party founder, Judson Phillips, reminded some of us and educated the rest that, originally, the US Constitution was constructed so as to only allow property owners the right to vote. An interesting idea and how does that translate to today”s modern world? The first thing we should recognize, in light of […]

Read More...

Greenspan vs. Geithner is Death Match "Weak Dollar" Debate

In this corner we have, Alan Greenspan, ex-Fed chairman and marital playmate of NBC political correspondent, Andrea Mitchell. In that corner, Tim Geithner, current Treasury Secretary and erstwhile employer of illegal aliens. The issue is whether or not the administration is intentionally driving down the US dollar’s value in a wrong-headed attempt to help the […]

Read More...

The 5 Worst Currencies in the World

With the US dollar being kicked back and forth like a soccer ball, its reputation in tatters, and value sliding steeply against all major world currencies, it might help us feel better about ourselves to know that we’re not the worst currency in the world. In fact, we don’t even make the top ten. Thanks […]

Read More...