Archive | Economics

Homeowner Equity Points Down The Road To Serfdom

The capital structure of US real estate assets has been in a long process of change. By subsidizing real estate and making mortgage debt artificially cheaper than equity capital, the US government has been effectively transferring real estate ownership from individuals to lending institutions and the Federal Reserve. Here’s how this game has been unfolding, and a warning to Americans that they will one day wake up in a country where most people live as feudalistic peasants, beholden to their banking and political overlords. Continue Reading

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Trade-Ya: Modern Bartering

Trade-Ya: Modern Bartering

In a sluggish economy, bartering is becoming an increasingly popular alternative to cash for businesses and individuals. Indeed, the practice of our pre-currency forefathers is coming back with such a vengeance that there are several websites dedicated to facilitating the practice. [Just like the kind great-great-great grandma used]. Continue Reading

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U.S. Economy De-Evolving: Rebuilding The Industrial Base

U.S. Economy De-Evolving: Rebuilding The Industrial Base

Politicians love to preach about the virtues of an industrial base. They do it for three reasons: Industrial firms are great sources of subsidies and political patronage, such patronage buys support from organized labor union voting blocks, and it actually does make sense for countries to produce real things of value. Since WWII America’s industry has steadily declined as a percentage of GDP, but the winds of change are blowing. Continue Reading

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Book Review: 5 Steps To Freedom

Book Review: 5 Steps To Freedom

The shackles of serfdom are being silently fastened to America. Every dollar Congress spends beyond its budget, every Federal Reserve Note printed, every tax, regulation, and government intrusion into our lives renders us less free. Ever wonder why it feels like it’s increasingly difficult to make ends meet? Remember the days when one spouse could work, the other raise the kids, and still save for a comfortable retirement? Those days are gone, but why? What’s next? The 5 Steps to Freedom: How To Cut Your Dependence On Institutions And Escape Financial Slavery, by Jeff Nabers explains what happened to our once prosperous society and how we can all take definite steps to escape what is to come. Continue Reading

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America's Effective Tax Burden: A Nation of Serfs

America's Effective Tax Burden: A Nation of Serfs

This article is dedicated to the growing segment of American society that is awakening to the ideas that we are increasingly overworked and overtaxed. My goal is to determine an effective tax burden on the average middle-class American. I will leave it to the reader to judge relative severity of the burden as measured against associated “benefits” to which he is “entitled” from the system. Continue Reading

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Ch-ch-ch-changes: Netting your niche

Ch-ch-ch-changes: Netting your niche

In this, the winter of our economic discontent, it’s not surprising to see the number of people who are finding an opportunity to reinvent. Sure, sometimes it has more to do with just an itching to try something new than anything. But more often than not, this decision is terror-driven or security-driven. Ether way, once you get past the sheer panic of OH MY GOD! WHAT AM I GONNA DO NOW, you just may find yourself in a perfect position to try something new. Continue Reading

Posted in Economics, Featured, Frugality, Personal Finance2 Comments

Buy VIX To Protect Market Gains

Buy VIX To Protect Market Gains

The stock market hit and then furiously bounced off a low on March 9th. Since then it has shot up about 30% nearly uninterrupted. Hope abounds that we may be emerging from one of the worst economic disasters in 20+ years. By many measures the frantic chaos of the last year appears to be subsiding, particularly when looking at the resurgence of corporate earnings, stock prices, and declining value of the CBOE Volatility Index (VIX). Yet it is at times like these when it makes most sense to buy insurance, and it just happens to be cheaper than it has been in a long time. Continue Reading

Posted in Economics, Investing6 Comments

Weighing Credit Contraction Against Money Creation

Weighing Credit Contraction Against Money Creation

There are two colossal events occurring in the world right now: Private credit and wealth is being destroyed, and in its place a good deal of money is being created. Much is taking place behind the scenes, driving this epic showdown between natural forces pushing for a return to sustainable equilibrium pitted against the full arsenal of man’s capability to resist.  Just as the fog of war can obscure a battlefield until the end, the outcome of this struggle is far from clear. Nonetheless, there are some telling events to note, signs for which to watch, and consequences to mull. Continue Reading

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How The Government Is Fixing The Economy

How The Government Is Fixing The Economy

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Do You Trust Big Brother With Your Portfolio?

Do You Trust Big Brother With Your Portfolio?

We are moving closer towards a political economy every day. Every dollar borrowed, taxed, printed, and spent by government really comes from the private sector.  Trillions of dollars of national resources are being allocated by politicians and bureaucrats towards things they claim will benefit our economy. Congress just passed a $3.6 trillion budget ($1.2 trillion in deficit), and combined the Federal Reserve and Treasury have dumped $13 trillion into the economy in the last 16 months. What we must all ask ourselves right now is whether or not we trust government with our money? Continue Reading

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