Government

The Fed’s Alice In Wonderland Economy – What’s Next?

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After the president of the United States, the most powerful person on the planet is the chairman of the Federal Reserve. By simply choosing to utter the right words, the chairman of the Fed can create or extinguish trillions of dollars of wealth both in and outside of the U.S. He holds the economic fate of billions of people in his hands. So it’s no shocker that investors carefully parse everything he says.

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Why the IRS Seized All the Money from a Country Store

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Last July, a swarm of officers from North Carolina’s Alcohol and Law Enforcement, the local police and the FBI descended on McLellan’s place of business.

The agents told the small business owner something that shook him to his core: The Internal Revenue Service had seized all of the money in L&M’s bank account: $107,702.66.

“‘Are you telling me you took my money?'” McLellan recalled asking the agents. “I didn’t understand what was going on. They dropped a bomb on me. I was lost for five to 10 minutes. I can’t believe that y’all guys can walk in here and tell me y’all took every bit of my money out of the bank.”

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You’d Better Hope The U.S. Government Likes What You Do For A Living

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It seems like almost daily we are hearing of more and more government encroachment on our freedom and liberty, whether it is the IRS targeting certain groups or NSA evesdropping on private conversations or even passing around “captured” pictures but today we are going to look at the practices of the Department of Justice (DOJ). In this article Leif Simon of “The Offshore Living Letter” takes a look at “Operation Choke Point”.

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Central Bank Smackdown

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The opening riposte came from the Bank for International Settlements, the “bank for central banks.” In their annual report, released this week, they talked about “euphoric” financial markets that have become detached from reality. They clearly – clearly in central banker-speak, that is – fingered the culprit as the ultra-low monetary policies being pursued around the world. These are creating capital markets that are “extraordinarily buoyant.”

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FED Magic

Yellen’s Wand Is Running Low on Magic

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The FED Thinks it has a “Magic Wand” that can boost the economy and solve all of our country’s problems. But as interest rates near zero… Housing is a major portion of GDP and lower interest rates make housing more affordable, thus boosting the economy but there is an actual limit to how low-interest rates can go and a theoretical limit to how long they can stay at zero.

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Edgar Allen Poe vs. The FED

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Ladies and gentlemen, I give you (drumroll please) total outstanding credit versus GDP in the United States from 1929 to 2012: Source: St. Louis Fed
This one chart shows exactly WHY we are where we are, folks. From the moment Richard Nixon toppled the US dollar from its golden foundation and ushered in the era of pure fiat money (oxymoron though that may be) on August 15, 1971, there has been a ubiquitous and dangerous synonym for “growth”: credit. The world embarked upon a multi-decade credit-fueled binge and claimed the results as growth.

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