The War On Cash: Officially Sanctioned Theft

How banks & the government are diminishing your savings
Friday, June 12, 2015, 11:07 AM

You’ve probably read that there is a “war on cash” being waged on various fronts around the world. What exactly does a “war on cash” mean?

It means governments are limiting the use of cash and a variety of official-mouthpiece economists are calling for the outright abolition of cash. Authorities are both restricting the amount of cash that can be withdrawn from banks, and limiting what can be purchased with cash.

These limits are broadly called capital controls. » Read more



Get Ready For Sky-High Taxes

As the pie shrinks, the taxman will grab for more
Tuesday, May 12, 2015, 9:39 AM

At some point in the arriving future, there’s plenty of economic pain coming either to the taxpayers when the I.O.U.s come due, or to the hopeful retirees to whom much has been promised. » Read more


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What Deflation Means For Investors

Beware: we're used to investing in an inflationary regime
Wednesday, December 10, 2014, 10:21 AM

Executive Summary

  • The 3 reasons why deflation will continue to haunt the global economy
  • The importance of cash flows in a deflationary environment
  • Understanding the deflationary reasons behind the recent drop in oil prices and the material implications this will have going forward

If you have not yet read Part 1: Deflation Is Winning available free to all readers, please click here to read it first.

So an very important question remains despite the trillions in new currency printed around the world in the past few years: Why are deflationary pressures still present?

  1. The debt overhang from the prior cycle has not vanished by a long shot. In fact today there is significantly more debt outstanding globally than was the case at the highs of 2007, primarily driven by global government borrowings.  The following chart is total US credit market debt relative to GDP.  You can see that very little has been reconciled since the peak.  By the way,

Data Source:  US Federal Reserve       

Additional global debt assumption means additional interest cost burdens, even under an environment of interest rate suppression.  And that means... » Read more



Off the Cuff: Vacuum of Leadership

Where have all the Churchills gone?
Thursday, December 5, 2013, 2:21 AM

In this week's Off the Cuff podcast, Chris and Mish discuss:

  • Raising taxes until morale improves
    • Europe's misguided approach to its woes
  • Tough medicine for underfunded pensions
    • Detroit bankruptcy may be a key precedent
  • Manipulation & fraud
    • Two things the TBTF banks get away with
  • Vacuum of leadership
    • A defining crisis of our time
Featured Discussion

Taxes vs Charity

Taxes vs Charity

What's the best vehicle for providing support to those in need?


How You Can Limit Your Exposure to the Fed's Financial Interference

There are ways to protect yourself
Thursday, August 1, 2013, 12:18 AM

Executive Summary

  • Understanding the Fed's ability to impact (or not) health & education, pensions, and inflation
  • What you can do to insulate yourself from the impacts of the Fed's financial interference
    • Mindset
    • Major expenses
    • Debt
    • Resilience
    • Income

If you have not yet read Part I: The Fed Matters Much Less Than You Think, available free to all readers, please click here to read it first.

In Part I, we found that the supposedly omniscient Federal Reserve is irrelevant to the engine of real wealth creation (innovation) and actively inhibits the allocation of capital and labor to innovation by incentivizing speculation and malinvestment.

In Part II, we’ll look at what else matters that the Fed either negatively influences or does not control, as well as specific actions we can take as individuals to insulate ourselves from the collateral damage caused by misguided central bank policies.

Health and Education

We all know health and education are vital to individuals and the economy, and like everything else that matters, the Fed’s influence is limited to financial repression of interest rates that enables the Federal government to avoid the sort of healthy fiscal discipline that higher rates would demand. In other words, the Fed has widened the moat around government spending, protecting it from the hard choices that would accompany massive deficits and bond issuance in a free-market economy.

Public and Private Pensions

By at least one measure, the Fed’s repression of interest rates (designed to recapitalize the banks at no direct cost to the Fed or government) has cost savers $10.8 trillion in lost income. Since the majority of savings in the U.S. are in public and private pension plans, 401Ks, and IRAs (individual retirement accounts), the Fed’s repression of interest rates has pushed these income-security savings into risky speculative asset bubbles in stocks, bonds, and real estate, and critically undermined the financial health of pensions by radically reducing their low-risk, safe returns. » Read more

Daily Digest

Image by Images_Of_Money, Flickr Creative Commons

Daily Digest 4/6 - Canadian Housing Downturn Evident, Turning Off The Power to Run the Grid

Saturday, April 6, 2013, 12:33 PM
  • The 1% Bug-Out Plan: Why Third-World Billionaires Are Buying Fortresses in London, New York and Miami
  • Our Parasitic Fed is Triggering the Five Stages of Collapse
  • Wall Street on the dole: America pays out millions in jobless benefits to millionaires
  • Signs of a Canadian housing downturn are everywhere
  • Stockman feels force of Washington fury
  • Turning off the Power to Run the Grid
  • Linking clean energy sources solves blackout conundrum
  • Monsanto's Dark History: 1901-2011
Daily Digest

Image by eviltomthai, Flickr Creative Commons

Daily Digest 3/18 - 'No Cause For Panic' In Cyprus, Disease Threatens Aquaculture

Monday, March 18, 2013, 9:03 AM
  • Wakeup Call From Cyprus To The Rest Of The World
  • With Regard to the Cyprus Bank Deposit Confiscations: Is Nothing Sacred?
  • No Cause For Panic
  • Wall Street: $474 Million, Detroit: $0
  • Tax Credits or Spending? Labels, but in Congress, Fighting Words
  • Federal government to announce plan to increase tanker safety
  • MIT Develops Meltdown-Proof, Nuclear Waste-Eating Reactor
  • Disease threatens aquaculture in developing world
Daily Digest

Image by Images Of Money, Flickr Creative Commons

Daily Digest 3/16 - 'Dangerous' Financial Products Named, PA Unions: 'Stop Cutting Taxes'

Saturday, March 16, 2013, 11:18 AM
  • Greenspan Says Too Big To Fail Problem 'Is Getting Worse, Not Better'
  • 'Dangerous' financial products named
  • Max Keiser: Is Bitcoin Money?
  • Philadelphia unions to City Council: Stop cutting taxes 
  • Parallel World of Finances
  • Shock in Cyprus as savers face bailout levy
  • ‘If You Ain’t a Gardener, You Ain’t Gangster’
  • RBC’s Water Attitudes Study: We’re in denial over stormwater infrastructure

Let's Stop Fooling Ourselves: Americans Can't Afford the Future

Unemployment, Taxes and Unfunded Retirement are Squeezing Ea
Tuesday, March 12, 2013, 10:24 AM

The truth is: The three adult generations in the U.S. are suffering, and their burdens are likely to increase with time. Each is experiencing a squeeze that is making it harder to create value, save capital, and pursue happiness than at any point since WWII. At that point, we were a creditor nation with an economy exploding into dominance on the world stage. Now, however, the U.S. is the largest debtor nation and our economic hegemony is increasingly at seige across a number of fronts.

A continuation of the status quo is a decision to sleepwalk face-first into the constraints hurtling towards us.

Instead, shouldn't we stop fooling ourselves and ask: What should we be doing differently? » Read more