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Rome's Runaway Inflation: Currency Devaluation in the Fourth and Fifth CenturiesJan 6, 2023 - 12:45:15 PST
By the beginning of the fourth century, the Roman Empire had become a completely different economic reality from what it had been at the beginning of the first century.
The Federal Reserve has been oddly quiet this holiday season. However, members of congress have not. Only a few days before the new year, on December 29, President Biden signed the $1.7 trillion government funding bill known as the Consolidated Appropriations Act, 2023. So, what do you get for $1.7 trillion these days? The answer is not much, if you’re an American, as explained...
There is no real housing market in the US. Instead, an unholy trinity of Fannie/Freddie, the US Treasury, and the Federal Reserve Bank operate to distort the market at every turn and drive home prices up dramatically.
Savings are a vital component of any successful economy, and the foolishness behind the paradox of thrift is exposed in this article. It has been a huge error for Keynesian policy makers to discourage savings in the interests of temporary boosts to consumerism. It is probably too late now but encouraging people to save by removing all taxation from savings makes an enormous...
The top 10% want the status quo to continue as is, even as the bottom 90% fall behind. When enough of the bottom 90% decide to "let it rot," the entire structure collapses under its own weight.
The newly-enriched IRS continued historic trends of primarily hassling low-income taxpayers (not the millionaires and billionaires it claimed).
The Internal Revenue Service is perhaps the ultimate sacred cow in Washington. It is the “goose that lays the golden eggs” for the city’s power and prestige, delivering trillions of dollars to politicians to work miracles (or at least get reelected). When criticism erupted over the 87,000 new revenooers to be hired thanks to Biden’s Inflation Reduction Act, Washington’s Defenders of Correct Thinking rushed to the ramparts.
The media goes to bat for the IRS
While the unemployment rate ticked down again, a leading indicator suggests it is set to increase in coming months. If so, that will put pressure on the equity market.
Full time employment is down 288,000 since March and down by 444,000 since May! Mainstream media misses general miss the big picture captured in my lead chart. This is not strong employment growth.
I know — inflation has been grabbing all the headlines for a good while now — so you may wonder why the subject of deflation is relevant.
Japan reported on Friday its worst real-wage decline in more than eight years, with November data highlighting the elusiveness of the central bank's objective of reinforcing inflation and the economy with sustained rises in workers' pay.
Euro-area inflation returned to single digits for the first time since August, fueling hopes that the bloc’s worst-ever spike in consumer prices has peaked.
German factory orders fell in November, a reminder that the country’s manufacturers are still struggling — even as the economic backdrop improves.
"The US economy no longer can sustain a policy of endless war. Rising interest rates highlight the dismal state of Uncle Sam’s finances. Fiscal reality, as well as good sense, tells the US to focus on its own security." ~ Doug Bandow
James Bullard, recently suggested the Fed might need to employ the "7% solution" to ensure the destruction of inflation. Is that realistic?
Fed’s Balance Sheet Drops by $458 Billion from Peak: January Update on QT and the Fed’s LossesJan 6, 2023 - 07:31:57 PST
The Fed’s cumulative losses reached $20.5 billion.
ISM Services Slumps Into Contraction, Factory Orders Plunge Most Since COVIDJan 6, 2023 - 07:09:37 PST
After a surprise bounce in November (and following S&P Global's Services PMI weakness), analysts expected ISM Services survey to show deterioration in December and they were right but the magnitude was very significant. ISM Services tumbled into contraction at 49.6 (vs 55.0 exp) from 56.5 in November. That is the biggest drop since 2020 and the first contraction since May 2020...
December Jobs Report Add 223K Jobs, But Wage Growth (4.6% YoY) Is Still Lower Than Headline Inflation Rate (7.1%), Avg Weekly Hours Employed Falls To 34.3...
Gold recently climbed to its highest prices in nearly seven months, feeding expectations that the precious metal is on track to notch record highs this year.
Gold climbed to its highest prices in nearly seven months, feeding expectations that the precious metal is on track to notch record highs this year, after closing out 2022 with a modest loss. Gold “noticeably” appreciated by about $200 an ounce from November to the end of last year, and continued that trend in the first few days of January 2023, says Edmund Moy, a former director of the U.S. Mint.