Thomas M. Hoenig, the Vice Chairman of the Federal Deposit Insurance Corp, wrote an editorial today in the Washington Post complaining it is unfair that the huge too-big-to-fail banks have less scrutiny by investors because they receive government deposit insurance guarantees, borrow from the Federal Reserve at virtually no cost and have gained public confidence [...]
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Despite the hammering from a late spring storm that blanketed much of the Mid-West and East Coast with 4 to 8 inches of snow, the National Oceanic and Atmospheric Administration [official name of the weatherman] just predicted that the 2nd worst drought since the Great Depression will continue to lay waste to wheat and corn [...]
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We have been warning that China’s current economic slowdown signals that the country China has entered the “Middle Income Trap” that will mark the end of the nation’s 30 years of 10% compounded annual growth. With inflation having already driven Chinese wages up to uncompetitive levels, manufacturing and construction activities are plummeting. Desperate to try to [...]
READ MORE »With the 2008 “Credit Crisis” bursting the global housing bubble; the United States led and the world followed with the massive amounts of government spending and money-printing stimulus promoted by “Keynesian” economists. To stem the crashes in prices on stock and commodity exchanges and a run on European banks; the U.S. Federal Reserve enlisted the world’s [...]
READ MORE »It is ironic that as China is demanding greater control of the World Bank and International Monetary Fund, just as the nation’s banking system is about to be devastated by the white hot flames of inflation. From a distance, China’s economy seems to be the poster child of sustainable growth. Recent government reports show the [...]
READ MORE »The U.S. Federal Reserve’s second round of Quantitative Easing stimulus, QE II, has caused vicious un-intended consequences around the world. The 42% rise in the CRB index of food prices has already caused starvation for millions of people, burned down the Middle East, and is increasingly creating havoc in Asia. But QE 2′s most venomous [...]
READ MORE »The Federal Reserve’s QE2 stimulus has stoked a fire storm of global of inflation. What began in the Middle East and North Africa as a rebellion against rising food and basic essentials for some of the poorest people on earth has now spread to supposed success stories, like China. Over the weekend, rioting broke out [...]
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