The Freedom Factory

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

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

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

HUD program turns out to benefit contractors and not the poor…go figure! China cranks up its printing presses-expect global inflation, Peter Schiff (“Dr. Doom”) discusses his book “Crash Proof”, Goldman Sachs plans to sell billions in stock to pay off government aid ASAP, gas prices up 5% in 3 weeks…inflation? Top U.S. general says we’ll be out of Iraq by 2011, and 75% of Americans want to lift Cuba embargo… Continue Reading

Congress wants to impose 90% tax on Wall St. bonus recipients, Fed will no longer raid legal marijuana dispensaries, auto parts suppliers to receive $5 billion in aid, Mexican drug cartels thriving in U.S., and the Federal Reserve creates $1.2 trillion in new money…just the latest in your Freedom Under Fire Report! Continue Reading

The verdict is not yet out as to whether we will experience inflation or deflation in the near term. The argument has been raging with pundits on both sides clinging to data they claim supports their guesses. Today marks a big day in the debate, however, with two critical pieces of news:

1) Consumer price index (CPI) rises more than expected, up 0.4% in Feb. following a 0.3% gain in Jan. This represents at 4.8% annualized inflation rate.

2) Federal Reserve committed to buying $300 billion in long-term Treasuries as part of its plan to drive consumer borrowing costs lower.

The immediate fallout can be seen in Gold, the U.S. dollar, and Treasuries today. Both pieces of news are inflationary. Rather than the feared ‘deflationary spiral’ we’re starting to see consumer prices heat up, albeit not appreciately just yet. The Fed buying Treasuries amounts to them printing $300 billion in new currency. This money is created out of thin air.

Most telling on inflationary fears is the Market Vectors Gold Miners ETF (GDX), up over 10% today, while the SPDR Gold Shares ETF (GLD) approached a 4% gain. PowerShares US Dollar Index (UUP) dropped over 3%, and the 30-Year Treasury yield fell to a low of 3.37% after the Fed announcement, settling higher at 3.57% later in the day.

In Checkmate: How the Federal Government Will Lose in 2009 I argued that our leaders were backing public finances into a predictable corner. With $2-3 trillion in budget deficit for 2009, alone, with more planned in coming years, government will be forced to increase borrowing or printing. Today’s news supports the ‘printing’ hypothesis, but I suspect this is just the beginning. The big game unfolding will be the Treasury issuing bonds to raise funds and the Fed turning around and buying them. This is a scam that will either lead to increasing bond yields or increasing inflation. There are no other options.

Obama plans massive federal incursion into education, banks want to return bailout money, U.S. naval ship repelled from Chinese waters, potential change to the Constitution, yet more violence in Iraq-dozens killed by suicide bombers-are Al Quada and Baath Party uniting? Citigroup on track for best quarter since ’07-lifts markets, traffic ticket destroys woman’s life, Ron Paul says we need more earmarks, and Fed chief calls for new financial regulations-Ron Paul says to regulate the Fed…just the latest in your Freedom Under Fire Report! Continue Reading

Inflation has long been a contentious topic in the U.S., not really abating at any point since the 1960′s. President Johnson’s “Guns & Butter” policies of the Vietnam war era sparked a good deal of money printing, inflation, and debate. Since then the Federal Reserve, Congress, and every President have gone on spending binges, rampant borrowing, and always increasing money supply. These are the tools of macro-economics, in which central decision authorities nationalize resources to socially engineer what they think will be perpetual prosperity. The results are debatable, but the consequences clear: Continue Reading

Will stocks skyrocket after this week’s mark-to-market House meeting? Federal stimulus raises concerns over state sovereignty, Obama targets defense contractors, IMF marching towards Global New Deal, feds hold auto meeting to determine government involvement, and the U.S. dollar reaches highest level since 2006…just the latest in your Freedom Under Fire Report! Continue Reading