U.S. President Barack Obama’s recently submitted budget proposal for 2015 revisits against U.S. coinage, its composition and cost. The President has shown an interest in updating and streamlining U.S. currency by cutting costs to production or eliminating altogether the smallest denominations since at least 2010, “in order to efficiently promote commerce in the 21st Century.” Both pennies and nickels cost some twice their face value to produce, despite the fact that the amount of copper and nickel contained within has been dramatically reduced. Canada is now a year into the apparently seamless and successful elimination of its penny coin. But the real significance of debasing or eliminating coins is an implicit acknowledgement that the dollar continues to fall in value, as do all fiat currencies in the world, and that no one has any intention of restoring that lost value.
Feb 05 2014
Despite silence and zero denials from the conventional media outlets, our post Media Gets It Wrong — Debt Ceiling Suspended (Permanently), Not Raised, appears to have got it right and offers a cautionary observation on prospects for the value of the Federal Reserve’s dollar in the months and years ahead.
Despite a big to-do about the impending Congressional battle over raising or refusing to raise the debt levels in one way or another (ceiling began in 1917), the newly enacted law of the land in the U.S. remains unmentioned in mainstream media, with annual theater proceeding just as it has for hundreds of years.
On October 20, 2013, U.S. law changed to transfer final spending authority from the legislative to the executive branch. The little-noticed yet epic transfer of power was enacted as part of the Continuing Appropriations Act passed on October 17, 2013.
Jan 18 2014
Our brackets, underlines, bolding and heavy redaction of linked opinion by dissenting federal employees, outlining to the States where usurpations lie. For if we are to be a healthy host, not only for free immigration, but for human progress, then vitality must be maintained. More on this in How to Reverse Creaking Empire. In that light, the editing is intended to bring out the circumstances of the present day, while not to misrepresenting the intent of the authors. Please comment, with any corrections.
Chart from Incrementum.li, and photos of the Justices from Wikipedia.
"Mr. Justice [Willis] VAN DEVANTER, Mr. Justice [George] SUTHERLAND, Mr. Justice [Patty's-day Pierce] BUTLER, and I [Mr. Justice James McREYNOLDS] conclude that, if given effect, the enactments here challenged will bring about confiscation of property rights and repudiation of national obligations.
Jan 10 2014
In the summer of 2012, reports surfaced that a group of bank traders had conspired to manipulate the LIBOR (London Interbank Offered Rate), a benchmark rate used to set interest rates and calculate value in millions of financial contracts all over the world. As it turns out, the LIBOR racket was only the tip of the iceberg. The scandal and ensuing investigations have unearthed a whole closetful of benchmark-rigging schemes—a fraction of a point of change to which can take money from the pockets of retired pensioners or raise the interest rates on home loans.
The latest twist on the rate-fixing scam is the collusion of foreign exchange traders to manipulate what is known as the “4 p.m. fix,” according to a Dec. 19 Bloomberg.com report.
Nov 28 2013
How does the Federal Reserve Bank (Fed) taper quantitative easing (QE), to aid the "take away?"
How does the Fed raise rates, and regain control over the short interest rates heading subzero, while better focusing credit on prices planners prefer manipulated... In turn, manipulating expectations, and in turn, human action?
How does the Fed continue QE indefinitely, while varying pace to meet their needs?
We have seen "many" officials at the Fed want to formally allow an unlimited amount of deposits to earn a rate fixed from the Fed (likely starting near 0.16%), in turn the market gains Fed-owned Treasuries or mortgage backed securities, causing two of 4 formerly clogged conduits of credit to soon flow:
1. As Fed's Treasuries rise, they can be sent back into the market to displacing demand in reuse, where multiple cash loans can be made against the same collateral type (increasing propensity to lengthen collateral chains, or create new ones as Fed's supply becomes a known quantity).
Nov 22 2013
The ink was still wet on U.S. President Barack Obama’s signature signing the Dodd-Frank Wall Street Reform and Consumer Protection Act into law in July 2010 when the wrangling began over how and how much to clamp down on trading by federally insured banks. Even though the financial reform act was passed, the devil is in the details of how regulators will actually implement it.
Sep 28 2013
Most of us have grown up with the notion that World War II brought prosperity to the United States—some even allege that it was only the advent of World War II that finally pulled the U.S. out of the Great Depression. But that mythology is being challenged more and more often these days, as economists consider where that misinformation came from and take a common-sense look at what was really going on in the economy. Tom Woods, a New York Times best-selling author of 11 books and founder of Liberty Classroom, provides a video synopsis of the evidence that the Gross Domestic Product (GDP) reported at that time was distorted and misleading. In fact, Woods says, rather than bringing prosperity and economic growth, World War II instead was a time of squandered resources and deprivation.
Wood’s first argument has to do with the distortion of unemployment figures from that era:
Aug 26 2013
Earlier this month the United States government finally brought legal action against some of the financial institutions that helped bring us the 2008 financial crisis. Yet, even as a handful of the biggest offenders face at least a modicum of justice, the Federal Reserve’s ongoing blank-check support for mortgage-backed securities enables the very behavior that nearly took down the global economy and undercuts any real efforts at reform.
Aug 09 2013
A federal judge ruled this week that Bitcoins, a “digital crypto currency” that has been touted as a potential free market alternative to traditional, government-controlled currencies, is legally money.
The ruling came up in a U.S. Securities and Exchange Commission lawsuit against Texan Trendan Shavers, who is charged with committing fraud in a Bitcoin Ponzi scheme worth millions of dollars, according to an NBC News report. Shavers attempted to counter the SEC charges by claiming that Bitcoins are not money, therefore shares of his company, Bitcoin Savings & Trust (BTCST), are not securities, and therefore the SEC has no jurisdiction. The U.S. District judge put the kibosh on Shavers’ argument, stating:
Mar 25 2013
Conventional sources continue to claim that the U.S. economy is in recovery—slowly, it is said, at times even flat, but generally slightly positive in trend. But despite reports and indicators that most audiences accept unquestioningly as proof that the economy is growing, economist Laksham Achuthan insists the United States has in fact been in a recession for several months.