Monday, January 31, 2011
Sunday, January 30, 2011
In the fourth quarter, economic output reached a $13.38 trillion seasonally adjusted annual rate, measured in 2005 dollars, inching 0.14% above the final quarter of 2007, when the recession began.
In the summer of 2009, the recession's official end, output plunged 4.14% below pre-crisis levels to a $12.81 trillion seasonally adjusted annual rate.
It took 12 quarters to recoup the losses and, on a per-capita basis, the economy is still not as large as it was before the recession took hold. Such a prolonged recovery is unusual: It took eight quarters to bounce back from the deep recession of the early 1970s.source
Friday, January 28, 2011
Thursday, January 27, 2011
Thursday, January 20, 2011
Wednesday, January 19, 2011
Unless you live in New Jersey or Oregon, notes The Wall Street Journal, where it's still illegal to pump your own gas. According to Bikram Gill, a businessman who bought up 26 gas stations in New Jersey, "Any idiot can do it." We know for a fact that there are idiots in all 50 states, and in 48 of them, those idiots are free to handle the somewhat volatile fuel themselves.
In 1951, though, the Supreme Court of New Jersey decided it was too dangerous to allow just anyone to pump gas, suggesting that the process of refueling is best left to the professionals.
Predictably, there have been attempts to change the law. In 1988, a judge issued a ruling that it was unconstitutional to disallow Americans the right to pump their own gas, but it was later overturned by a court of appeals. And again in 2006, governor John Corzine attempted to put self-service stations along the Turnpike, but the voting public said 'No Thanks.'And so it remains illegal to pump your own gas in Jersey. Of course, the next time it's raining or snowing or sleeting and you need to fill up, something tells us you'll understand...
Tuesday, January 18, 2011
Wednesday, January 12, 2011
Saturday, January 1, 2011
HYPERINFLATION WILL DRIVE GOLD TO UNTHINKABLE HEIGHTS
by Egon von GreyerzWe now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments. Thus most of these assets are also worth-less...
Let us be very clear, this financial Shangri-La is now coming to an end. The financial system is broke, many western sovereign states are bankrupt and governments will continue to apply the only remedy they know which is issuing debt that will never ever be repaid with normal money.
So why does the world still believe that the financial system is sound?
- Firstly, because this is what totally clueless governments are telling everyone and this is what investors want to hear.
- Secondly, whether governments apply austerity like in parts of Europe or money printing as in the US, investors want to believe that any action by government is good, however inept.
- Thirdly, market participants are in a state of false security due to shortsightedness and limited understanding of history.
- Fourthly, as long as they can benefit from inflated and false asset values, the market participants will continue to manipulate markets.
- Fifthly, there has been a very skilful campaign by the US to divert the attention from their bankrupt economy and banks `to small European countries like Greece, Ireland or Portugal. These nations, albeit in real trouble, have problems which are miniscule compared to the combined difficulties of the US Federal Government, states, cities and municipalities.
What is much more important to understand is that physical gold (and silver) will protect investors against losing virtually 100% of the purchasing power of their money. Whatever real capital appreciation gold will have in the next few years is of less importance. But what is vital, is that physical gold (stored outside the banking system) is the ultimate form of wealth protection both against a deflationary collapse and a hyperinflationary destruction of paper money.
read the entire essay