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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 
We Couldn't Have Said It Better archive print

December 31, 2014

“After not finding any visible yield in the classic spots, thanks to the Fed’s policies, institutional investors – the folks that run your mutual fund or pension fund – took big risks just to get a tiny bit of extra yield. And to grab a yield of 5% in June, they bought energy junk debt so risky that it now has lost a painfully large part of its value, and some of it might default.” Wolf Richter, Editor

“This time the carnage could be much worse because the most recent tsunami of central bank credit was orders of magnitude larger and more virulent than during the run-up to the Lehman event or the dotcom implosion.” David Stockman, Economist

“The underlying fundamentals for the U.S. dollar simply could not be worse. With the developing confluence of extraordinarily negative factors, the U.S. Dollar should turn sharply lower, facing a massive sell-off and panicked dumping.” John Williams, Economist

“If the derivative bubble pops, nobody knows what is going to happen, and it’s obvious it has to pop. It can’t just keep growing. Depending on who you read, some people say it is up to two quadrillion dollars. It’s virtual money, and it cannot keep going on.” Ellen Brown, Analyst

“The undermining of the U.S. History curriculum is typical of the progressives’ work in our schools. Like thousands of termites, they are eating away at the foundations of our culture.” Mona Charen, Author

“The story here is not oil; it’s about a massive bubble in risk assets fueled by borrowed dollars blowing up. The last time around was a housing bubble. This time it’s an everything bubble. And oil is juts the canary in the coal mine.” Graham Summers, Editor

“Six years of the Fed’s easy money policies purposefully forced even conservative investors to either lose money to inflation or venture way out on the risk curve. So they ventured out, many of them without knowing it because it happened out of view inside their bond funds. And they funded the fracking boom and the offshore drilling boom, and the entire oil revolution in America, no questions asked.” Wolf Richter, Editor


“In the actual physical market, oil has fallen by even more than the futures market. That’s a telling sign, and it’s telling me that this isn’t over yet. This isn’t the bottoming process. The physical market turns before the futures.” Daniel Greehhaus, Global Strategist

December 16, 2014

“China is firing up a new coal plant every eight to 10 days. We could close every coal mine in Kentucky and West Virginia and achieve absolutely nothing except devastating Appalachia and, in effect, shipping its economic lifeblood to China.” Charles Krauthammer, Great American

“In a free society composed of unequal individuals, the drive to level the playing field is a totalitarian desire and a threat to freedom because it empowers government to confiscate the talents and earnings of some for the benefits of those it favors.” Horowitz & Perazzo, Authors

“The global financial system has come unglued. Everywhere the real world evidence points to cooling growth, faltering investment, slowing trade, excess industrial capacity, peak private debt, public fiscal exhaustion, currency wars, intensified politico-military conflict and an unprecedented disconnect between debt-saturated real economies and irrationally exuberant financial markets.” David Stockman, Economist

“As Japanese Prime Minster Shinzo Abe has turned his country into a Petri dish of Keynesian ideas, the trajectory of Japan's economy has much to teach us about the wisdom of those policies. And although the warning sirens are blasting at the highest volumes imaginable, few economists can hear the alarm.” Peter Schiff, Editor

“Many on the left may want to help ‘the people.’ But once you start from the premise that you know what is best for the people, better than they know themselves, you have to figure ways around a Constitution based on the idea that the people not only have a right to choose their government and control the government policy with their votes, but also that there are vast areas of the people’s lives that are none of the government’s business.”  Thomas Sowell, Editor

“In the contest between hard-won experience and disappointed idealism, the latter always wins in the liberal mind.” Bret Stephens, Author

“Goldman Sachs Group Inc. and HSBC Holdings  were sued in New York over claims they conspired for eight years to manipulate prices for the precious metals platinum and palladium in what plaintiffs’ lawyers say is the first class-action lawsuit of its kind in the U.S.” Bloomberg

“My advice to my readers is the same as it always has been; purchasing gold and silver at today’s low prices is an excellent long term investment.” Mark J. Lundeen, Editor

“There is only so much debt that an economy can take on.” Mark Spitznagel, Hedge Fund Manager

“The government laughingly told the sheep that GDP in the 3rd quarter had soared. A critical thinking person might wonder how that could be. We know from the data that the consumer has not been spending, because they don’t have anything to spend.” Jim Quinn, Editor

“The primary structural issue preventing meaningful, U.S. economic growth remains impaired consumer liquidity. Without real growth in income the consumer lacks the ability to fuel traditional, consumption-based growth or recovery in U.S. economic activity, including not only retail sales, but also residential investment and related construction spending.” John Williams, Economist

“The vast majority of public oil and gas companies require oil prices of over $100 to achieve positive free cash flow. Nearly half of the industry needs more than $120.” Ambrose Pritchard, Editor

“The stock market is overvalued, overbought, overextended, and over-leveraged. This is a recipe for a correction if not a collapse.”  Graham Summers, Editor

“When the next major wave of the economic crisis strikes and we start experiencing real suffering in this nation, the temper tantrums that we are going to witness in our major cities are going to make that is happening in Ferguson right now look like a Sunday picnic.” Michael Snyder, Editor

The main thing I encourage investors to understand is the actual depth of market declines that have been part and parcel of market cycles across history. The risk is not 5-10%, but 30-50% and occasionally more.” John Hussman, Editor

“It’s extremely tough to be a contrarian investor always out of the mainstream, always fighting the consensus. I do it for only one reason – it works.”  Fred Hickey, Editor

December 2, 2014

“The only activities that are stimulated by zero interest rates are those where interest rates are the primary cost of doing business: financial transactions.” John Hussman, Editor

“Paul Krugman’s latest column focusing on the GOP election victory, ‘Triumph of the Wrong’ is a typical sour grapes whine from the leading economic apologist for socialism in the U.S. Paul Krugman is the most dangerous man in America to your remaining liberties and wealth because he has the entire establishment media behind him.”  Ron Holland, Editor

“The Keynesians will not desist in their destructive money borrowing until they have suffocated free market capitalism entirely, and have monetized so much public debt that the financial system implodes.” David Stockman, Economist

“Central bankers across the globe have succeeded in hollowing out the middle classes, but have failed miserably in achieving viable growth. This game will continue until the inevitable currency collapse unfolds and investors lose faith in government-manipulated asset prices. Hopefully, investors will insist on putting their faith and wealth in money that can’t be destroyed by a handful of unelected and unaccountable government hacks.” Michael Pento, Author

“The most important thing that happened last week was that the country dodged a bullet. Had the Democrats retained control of the Senate, President Obama could have spent his last two years in office loading the federal judiciary with judges who share his contempt for the Constitution of the United States.” Thomas Sowell, Editor

“Switzerland’s regulator found ‘serious misconduct’ by UBS employees in precious metals trading, particularly silver, as part of its review of the bank’s foreign-exchange business.” Bloomberg

“Go buy something, whether at the grocery store, the drug store, the broom and mop store, and there is inflation everywhere. I have so many types of businesses so I buy everything from labor, to mops, to food, to shrimp, to steak and everything is more expensive. We are raising prices: that’s why right now you pay more for an airline ticket, you pay more for a hotel room, you pay more for a pot of coffee. There is a huge inflation going on right now.” Tilman Fertita, Billionaire Restauranteur
 
“As advanced as our modern civilization may be, we’ve been playing with fire for more than a century. Every single experiment with unbacked paper money throughout history failed.” Simon Black, Editor

November 12, 2014

“The idea that governments can hold inflation to just 2% per annum is preposterous. Once it breaches that level, governments will be powerless to contain it.  The endgame will be hyperinflation.” Peter Schiff, Editor

 “No other major economic series has shown a parallel pattern of economic recovery consistent with GDP. Either the GDP reporting is wrong, or all major economic series are wrong. Flaws in the GDP inflation methodologies have created the ‘recovery.’” John Williams, Economist

“Conservatives are passionate. They don’t vote with their pocketbooks. They vote their guts, and their guts tell them that leftism is immoral on the most basic level.” Ben Shapiro, Author

“Nearly 60,000 triple-dipping veterans picked up $3.5 billion in benefits (collecting their military retirement pay; and disability benefits from both the Veterans Administration and Social Security too).Washington Times 

 “Helicopter money? It’s no longer inconceivable. The idea is becoming respectable.” Jim Grant, Editor

“QE has finally come to an end, but public comprehension of the immense fraud it embodied has not even started. In round terms, this official counterfeiting spree amounted to $3.5 trillion. That’s a lot of something for nothing. It’s a grotesque amount of fraud.” David Stockman, Economist

“Using a law designed to catch drug traffickers, racketeers and terrorists by tracking their cash, the government has gone after run-of-the-mill business owners and wage earners without so much as an allegation that they have committed serious crimes. The government can take the money without ever filing a criminal complaint, and the owners are left to prove they are innocent. Many give up.” Tyler Durden on NY Times article

“Granting legal status to millions of illegal immigrants would depress wages for all racial groups.” Peter Kirksanow, Civil Rights Commissioner

“Lefty politicians who have never worked for a living while claiming that businesses don’t create jobs…don’t create jobs.” Daniel Greenfield, Editor

“The Fed has ended QE. And it won’t be launching a new program anytime soon. So when this rally ends and stocks collapse, the Fed won’t be coming to the rescue. Be prepared.” Graham Summers, Editor

“As labor is in over-supply virtually everywhere, wages are declining when measured in purchasing power. Wages are under deflationary pressure, and almost everything else is exposed to inflationary pressure.” Charles Hugh Smith, Editor

“Folks, look out below. As George W. Bush said in another context…this sucker is going down.” David Stockman, Economist

“The Fed has succeeded in recreating the same environment that existed in 2007. Once again, we have rampant risk taking, excessive leverage, and a stock market bubble.”  Graham Summers, Editor

“It’s the way of radical monetary gimmicks that one begets another. The more they’re tried, the less they succeed. The less they succeed, the more they’re tried. There is no ‘exit.’” Jim Grant, Editor

November 3, 2014

“Leftists are missionaries of unhappiness. Their creed is salvation through anger. Their governing philosophy is to make others miserable in order to teach them how they have overlooked the misery of others. They are forever spreading misery around the world for the sake of the greater good.” Daniel Greenfield, Author

“The U.S. recovery is exaggerated and the health of U.S. consumers and the fundamentals of the U.S. economy remain weak. An economy that has over 55 million or nearly 20% of the population on food stamps is by its nature very weak and vulnerable.” Mark O’Byrne, Research Director

“The economy is not recovering.  Happy headline numbers, including the increasing nonsense and unreliability in the unemployment and employment data, should reverse in the months ahead, with other series turning increasingly negative.” John Williams, Economist

“I view the stock market as likely to lose more than half of its value from its recent high to its ultimate low in this market cycle.” John Hussman, Editor
“The chickens eventually will come home to roost for the U.S., just as they did for the poor Zimbabweans. The political pressure to print money is the same everywhere as are the laws of economic science.” Patrick Barron, Economist

“The larger the government, the less growth there will be from a less dynamic economy.”  Mark Faber, Editor

“Investors around the world are shocked, shocked that the monetary wizards may have run out of magic tricks to revive global economic growth.” Ed Yardeni, Analyst

We now live in a society where young male barbarians are growing in number, their masculinity tied into useless aggression.” Ben Shapiro, Editor

Lenin wasn’t fighting so that the peasants would have land, bread and peace. Today’s liberals aren’t fighting for equality of income, gender, race or any other kind.  They are fighting to suppress any and all opposition to their policies by disrupting and destroying the existing American system at every level.” Daniel Greenfield, Author

October 17, 2014

At the turn of the century, the six major central banks had combined balance sheets of $2 trillion. Today the figure is $16 trillion and is therefore 8X larger. That compares to world GDP growth of about 2X during the same period.”  David Stockman, Economist

“With almost 20% of Americans’ disposable personal income made up of U.S. government transfer payments (up from just 5% 60 years ago), it is perhaps no surprise that Bloomberg’s Comfort Index shows the jobless in America haven’t been this comfortable since 2007.” Zero Hedge

“New reporting of relatively hard annual numbers from 2013 showed ongoing economic contraction, with no trend towards sustainable economic growth. Despite any short-term pre-election fluff, basic underlying economic series, such as the trade deficit, retail sales, industrial production and payroll employment, increasingly should show weakness in headline activity in the months ahead, providing consensus expectations with downside shocks. That increasingly should shift the popular outlook towards a ‘new recession,’ with negative shifts in the economic consensus eventually disrupting stability in the financial markets.” John Williams

“Global climate change has a cult-like status among the American left, one that not only transcends scientific reality, but engenders an unseemly level of rage directed at skeptics, and a monumental level of hypocrisy among its adherents.” Arnold Ahlert

“All the major economies are saturated with debt. Accordingly, central bank balance sheet expansion has lost its Keynesian magic entirely.  Now the great sea of freshly minted liquidity simply fuels the carry trade as gamblers everywhere load up with any asset that generates a yield or short-run capital gain, and fund these bloated positions with cheap options and repo style finance.”  David Stockman, Economist

“Corporate insiders are dumping shares at a pace not seen since 2000.” Graham Summers, Analyst

“Without constant and ongoing life-support, the economy is down for the count. And eternal life-support is not an option, even Keynesian economists understand that.” Raul Meijer, Editor
“There is no doubt that fracking stopped the long-term decline in U.S. oil output. Since the all-time low output in 2006, daily oil production has increased by 30%. Fracking extraction of oil is extremely expensive. If oil prices were to fall to $80 per barrel, there would be no profits for frackers. They would stop drilling wells. So don’t plan on ever paying less than $3 per gallon for gasoline ever again.” Jim Quinn, Editor

“I see a physical shortage coming in silver that I don’t anticipate coming to gold. Physical shortage is the most powerful force for an upside explosion in a commodity’s price known to man.”  Theodore Butler, Analyst

“Since early 2013, the U.S. stock markets have done nothing but rally, thanks to the Fed’s oft-implied backstop.  This incredibly unnatural behavior has left sentiment dangerously unbalanced, with hyper-complacency and euphoria running rampant. Only a major selloff can restore normal psychology. And with the Fed’s third quantitative-easing campaign ending, odds are high such a big downside event looms.”  Adam Hamilton, Editor

“The U.S. government sends nice round checks to cable providers ($7.2 billion as of 2012) for ‘rural broadband’ service. As the CATO Institute notes, the majority of those served already have broadband.” Mona Charen, Editor

“Why are Americans – and the Western world in general – falling all over ourselves stifling our own self-expression to appease people who chose to immigrate here, and are now demanding suppression of anything they don’t like, such as public expressions of Christianity or displays of the American flag?” Thomas Sowell, Author

October 2, 2014

“Illegal aliens are now flooding public schools without proper immunizations, putting U.S. children at risk. With local authorities powerless to stop it, this underscores how illegality begets lawlessness in all areas of life.” Investor’s Business Daily

“The U.S. already is experiencing asset-price inflation. Higher inflation will be ‘baked in the cake’ over the next couple of years.” Paul Kasriel, Economic Advisor

“We do remain concerned that there is a cliff at the edge of what appears to be a permanently high plateau.” John Hussman, Analyst

“This time around, the crash and its byproducts will be more extreme then in 1929 as the bubble itself is more extreme.” Jeff Thomas, Editor

“The end of QE will prick the current bubbles in stocks, real estate, and bonds, just as higher rates pricked the housing bubble in 2006.” Peter Schiff, Author

“Government debt is simply not a safe play in today’s markets. It’s either speculative or it’s suicidal.” Dickson Buchanan, Director

“It’s not hard to reach the conclusion that so many investors feel good not because things are good but because investors have been seduced into feeling good – otherwise known as ‘the wealth effect.’ We really are far along in re-creating the markets of 2007.” Seth Clarman, Asset Manager

“As history has shown, without families as the crucibles of civilization, societies collapse.” Investor’s Business Daily

“Stay out of debt, avoid counter-party risk, be diversified and have a bug-out plan.” Mark Jeftovic, Editor

September 18, 2014

“There is going to be a massive repricing in the financial markets. Everything is overvalued, from stocks, to real estate, to big-cap companies, to speculative small-cap companies, and derivatives of every kind.” David Stockman, Economist

“If history repeats itself, then we could be on the same path as Weimar Germany in the 1920’s. During that period, paper currency became worthless. But those who had gold and silver in their possession were still able to purchase bread and meat. The Fed is now buying debt with debt. The ‘official’ inflation numbers are a scam.” David Levenstein, Author

“Gold could go to infinity.” Ron Paul

“The historical average interest rate paid by the Treasury Department from 1990-2013 calculates to 5% and to 7% from 1971-2013. The current average interest rate paid by Treasury across the range of maturities is 2.4%. At 5% Treasury would more than double its interest payments from $416 billion annually to $867 billion. At 7% Treasury interest rate payments would balloon to $1.2 trillion nearly triple the current interest payment annually.” Michael Kosares, Author

“I was curious if I could care about money and I couldn’t.” Chelsea Clinton [upon quitting her $600,000 job at NBC]

“There’s a growing gap between what central banks are telling us about inflation versus what people are really experiencing in day-to-day life. There are a lot of reasons for this but I think it’s important to understand that [nation] states are broke, and therefore they are looking at ways to default on their own citizens. And inflation is one of those mechanisms. So, it’s not surprising they don’t tell you that’s what they are doing.” Philippa Malmgren, Former White House liaison to the Federal Reserve

“Did you see what former CTFC commissioner Bart Chilton decided to do this week? He joined an HFT lobby organization – full reverse. He is now playing ball for ‘the enemy’ and the type of trading he so publicly criticized.” Jeffrey Lewis, Editor

“The costs of mining have risen hugely. Political risks have risen hugely. There really is no ideal location to mine in the world today. It’s not like 100 years ago when almost every place was quick, easy and profitable. Now, every project is a decade-long maneuver. Mining has never been an easy business, but now it’s a horrible business, worse than it’s ever been.” Doug Casey, Author

“How will future obligations of our something-for-nothing society be paid? Money printed out of thin air. This is such a frightening picture of what lies directly in the future, to believe there will not be bad consequences is to believe in the tooth fairy.” Ty Andros, Analyst

“In the wake of all of this unparalleled accommodation, the Fed is left not only with a ballooned balance sheet and continued zero interest rate policy but record low velocity of money. This means that money is not changing hands very quickly with the system stuck under a stagnant swamp of liquidity that is hindering the possibility of a true economic cycle and something that helps to explain why the economic recovery is so uneven.” Abigail F. Doolittle, Analyst

“In the U.S., the planners, regulators, controllers, meddlers, and zombies – all those who prevent real prosperity – grow bolder and more numerous.” Bill Bonner, Editor

“‘Easy money’ is not some tonic that simply lifts the general mood and boosts all economic activity proportionally. Monetary stimulus is always a form of market intervention. It changes relative prices, it alters the allocation of scarce resources and the direction of economic activity. Monetary policy always affects the structure of the economy – otherwise no impact on real activity could be generated. It is a drug with considerable side effects…The near-term outlook is far more heavy-handed interventions everywhere, and the endgame is probably inflation. This will end badly.” Detlev S. Schlichter, Author

“The day is coming when insincere promises made by bankers to deliver tons of silver and gold sometime in an uncertain future will not be good enough to satisfy market demand, and that’s when this farce ends. Expect it to end with a bang, not a whimper, and people will either be in or out when it ends, so the time to get in is now.”  Mark J. Lundeen, Editor

September 5, 2014

“We are currently on a journey to the outer reaches of the monetary universe.” Ronald-Peter Stoferle

“Silver, purchased at current prices, could be a life-changing investment.” Jeff Clark, Editor

“One must hold silver, in my opinion, because the downside is minimal compared to the upside. I respect all the reasons people have for holding silver, including as insurance and as a hedge against future inflation; but my reason is for the spectacular gains to come.” Theodore Butler, Analyst

“Our government is in a horrific trap because of the record amount of debt it has issued and allowed the central bank to monetize. This is why every time the Fed tries to fight asset bubbles and bring inflation under control it will result in the creation of a monetary depression. And is also why nearly every central bank on the planet has decided the only real long-term objective is to fight against deflation and ensure inflation will always prevail.” Michael Pento, Author

“If we use the 1980 formula to measure inflation, silver would need to top $470 to beat that peak.” Jeff Clark, Editor

“American culture has been tragically warped by the political left.” David Horowitz, Editor

August 19, 2014

“Gold is the ultimate inoculation against harebrained central bankers.” Jim Grant, Editor

“The administration is doing everything it can to expand government dependence, getting people on Obamacare subsidies, food stamps, earned income tax credits and disability payments. Federal workers routinely ignore – even blatantly violate – the laws that established these programs in order to maximize giveaways.” Betsy McCaughey, Author

“While cynical politicians prattle on about protecting the American Dream, they’re working together to destroy it. If these elected officials care so much about reducing poverty, why are they working so hard to import more of it from around the world?” Michelle Malkin, Author

“Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives.” Kyle Bass, Hedge Fund Manager

“I don’t think the world has ever been in a more dangerous economic situation than it is today.”  Mark Thornton, Economist

“The soaring NASDAQ 100 index reflects the most artificial, unsustainable and dangerous Fed created financial bubble ever.” David Stockton, Economist
“The fact that 50% of Americans are reliant upon the government for their income alone is a guarantee of bad things to come.” Doug Casey, Author

Each equity market crash has been worse than the last. The one right around the corner will be no exception. In fact, if past history is any guide, the mere ending of the Fed’s asset purchase program will be enough to send equity prices crashing back to earth.” Michael Pento, Author

“From the universities to the arts to religion, the left damages everything it touches.” Dennis Prager, Radio Host

“We are headed into a perfect storm of policy failures…and I can promise you that all hell is going to break loose.” David Stockman, Economist

“Compromise, especially when dealing with an unbending ideologue and propagandist, is no virtue.” David Limbaugh, Editor

August 6, 2014

“The last six-plus years of economic collapse and stagnation have been dominated by a consumer beset with intense, structural-liquidity problems.  Without real, or inflation-adjusted, growth in income, and without the ability or willingness to take on meaningful new debt, the consumer simply does not have, and has not had the ability to sustain real growth in housing, retail sales or in personal-consumption activity that dominates the headline change in GDP.  There is nothing that would support a sustainable turnaround in the housing industry or general economic activity.  There never was an economic recovery, and there is no recovery underway, just general bottom-bouncing that broadly is turning down anew.” John Williams, Economist

 “This euro crisis is not over.” Max Zimmerer, Banking Executive

Last month, the U.S. registered a gain of 288,000 jobs. Sounds good, right? But here’s the rest of the story: That same month, we lost 523,000 full time jobs and gained 799,000 part time jobs. There were only 12,000 new full time jobs created.”  Bernard Goldberg, Author

“We have no right to be surprised by a severe and imminent stock market crash.  In fact, we must absolutely expect it.” Mark Spitznagel, Hedge Fund Manager

“By damaging trust and permitting Wall Street to dump its toxic debts on the public’s balance sheet, the Fed has taken the financial system from a status of extremely unhealthy to terminal.”  Graham Summers, Analyst

“When the central bank pumps money into the economy and suppresses interest rates it creates incentives to speculate and invest in ways that would not otherwise be viable.” Steve Saville, Editor

“Smoke and mirrors obfuscating true economic conditions for five years has been deliberate. The economy has not recovered. It has been made more distorted and imbalanced by the futile attempts to pretend that all is well.” Monty Pelerin, Editor

“Just for once, wouldn’t it be great if President Obama actually defended American business, instead of attacking it?” Lawrence Kudlow

“Since 2007, the world’s central banks have collectively put more than $10 trillion into the financial system. This kind of money printing is literally unheard of in modern history. And it has set the stage for a roaring wave of inflation.” Graham Summers

July 22, 2014

“Because it is disguised in higher prices, fewer jobs and lower salaries, few of us realize federal regulations cost us about as much as we pay in federal income taxes and payroll taxes.” Jack Kelly, Columnist

“The more you help low-income people, the more low-income people you’ll have.” Casey B. Mulligan, Economics Professor

“At face value, the jobs gain and upside revisions to recent payroll employment were positive news, but the gains were no more than statistical illusions from hidden shifts in seasonal factors and from phantom jobs creation by the Birth-Death Model’s upside bias factors.” John Williams, Economist

“U.S. lending to businesses is reaching record levels, but banks are privately warning that the activity should not be seen as evidence of an economic recovery. Much of the corporate lending is going to fund payouts to shareholders, finance acquisitions and fuel the domestic energy boom, bankers say, rather than to support companies; organic growth.” Financial Times

“Only the free enterprise system has ever produced wealth for ordinary people. All government need do to restore prosperity is provide a level playing field, with taxes and regulations that are simple, clear, fair and stable.”  Jack Kelly, Columnst

“The American dream is shrinking because some of our leaders want it to shrink. Decline, in other words, has become a policy objective. And if this decline continues at the current pace, America as we know it will cease to exist. In effect, we will have committed national suicide.” Dinesh D’Souza, Author

July 11, 2014

“In the end free markets always prevail and the eventual adjustment from the current fantasy world created by central banks and governments will be extremely violent and destructive.” Michael Pento, Editor

“There never was a broad economic recovery, and there is no recovery underway, just general bottom-bouncing that is turning down anew.”  John Williams, Economist

“I don’t think there is any way to save the U.S. dollar. Thus the wise thing is to swap your dollars for silver and gold.”  Richard Russell, Editor

“How is using a 500-year-old technology (wind-power) – which is two to three times more costly than fossil fuel electricity – an evolutionary step toward anything but the poor house?”  Investor’s Business Daily

“Rallies are spreading throughout Germany protesting the corrupt and dying global status quo. One of the key targets is the U.S. Federal Reserve system.” Mike Krieger, Editor

“Hope and change has crashed and burned.” Arnold Ahlert, Columnist

“American capitalism and all political life, too, is now ruled by a 12-member monetary politburo, which is essentially accountable to no one except its own misbegotten doctrine that prosperity flows from the end of a printing press.” David Stockman, Author

 “Reserve currencies come and go. So will the dollar. This is nothing new.” Simon Black, Editor

“If the practice persists of covering government deficits with the issue of notes, then the day will come without fail, sooner or later, when the monetary systems of those nations pursuing this course will break down completely.”  Ludwig von Mises (1881-1973), Economist

“What happens during a typical inflation is that in its early stages commodity prices do not rise as fast as the supply of money is increased, and in its later stages prices rise much faster than the supply of money is increased.” Henry Hazlitt (1894-1993), Economist

“Americans face a choice: you can rediscover the animating principles of the American idea – of limited government, a self reliant citizenry, and the opportunities to exploit your talents to the fullest – or you can join most of the rest of the western world in terminal decline.” Mark Steyn, Author

June 26, 2014

“What preoccupies the U.S.A. now, in June of 2014? According to the current cover story Time Magazine, the triumph of ‘transgender.’ Isn’t it wonderful to celebrate sexual confusion as the latest and greatest achievement of this culture? No wonder the Russians think we’re out of our minds and want to disassociate from the West.” Howard Kunstler, Editor

“By buying $2 trillion in mortgage-backed securities, the Fed (in conjunction with Fannie Mae, Freddy Mac and the Federal housing agencies such as FHA) has essentially socialized the mortgage market in the U.S. – virtually all home mortgages are now backed or issued by the government. Less than 5% of all mortgages are privately issued and not guaranteed or owned by the government.” Charles Hugh-Smith, Editor

“The truth is that the world is awash in sovereign debt. And the credit, currency and inflation risks associated with owning that debt has never been more elevated. Therefore, the only reason why yields are at historic lows is because they are predicting the chances of a meltdown in the global economy are extremely elevated at this time.” Michael Pento, Author

“Political ideas that have dominated the public mind for decades cannot be refuted through rational arguments, they must run their course in life and cannot collapse otherwise than in great catastrophe.” Ludwig von Mises, Economist

“Don’t ever forget, they will print the money!” Ty Andros, Editor

“In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule.”  Friedrich Nietzsche, Philosopher

“If loose monetary policy is enforced over a prolonged period of time, it runs the risk of severely weakening the process of wealth generation.” Frank Shostak, Economist

“The sad truth is that one of the reasons people have to go on relief in the first place is that they have been as incompetent or heedless in spending money as in earning it. The worst thing one can give a spend-thrift, a drunkard, a drug addict, or a compulsive gambler is cash.” Henry Hazlitt, Economist
“A ‘social justice’ society is a conflict society which locks beneficiaries and victims alike in a struggle without end. It becomes a society torn apart by resentment over the wealth of capitalists.” Hans Sennholz, Economist

“Perhaps it is foolishness more than knavery that prompts the innocents to accept something for nothing. As they permit government to assume the responsibility for their security and welfare, they relieve themselves of self-responsibility, the removal of which depersonalizes the individual and thus destroys him.” Leonard E. Read, Philosopher

“When the people find that they can vote themselves money, that will herald the end of the republic.” Benjamin Franklin

“A massive dollar sell-off against most other major Western currencies remains likely in the near future.” John Williams, Economist

“The greatest dangers to liberty lurk in insidious encroachment by men of zeal, well-meaning but without understanding.” James Madison

“Skyrocketing college tuition costs are explained partly by extensive public subsidies to higher education…government support allows universities the kind of pricing power that other industries only dream of…you only need to look up the generous incomes and perks enjoyed by administrators and senior faculty at your local university.” F. F. Wiley, Editor

June 12, 2014

“Total physical silver demand rose by 13% in 2013 to an all time high.”  Silver Institute

“The increase in basic commodity prices is now a long established trend that will continue for the foreseeable future.” Mark Lundeen, Editor

“While the world talks about the dangers of deflation, which offers no harm to economies or consumers, actual inflation is everywhere to be seen and nowhere acknowledged. Instead, we get a universal agreement that the middle class must continue to suffer so that the Fed and financial speculators can continue to revel in the charade.” Peter Schiff, CEO
“Can we continue to delude ourselves that we can have a free, prosperous country when almost half our babies are born to unwed mothers?” Star Parker, Columnist

“The way I see it, the dollar could go to zero in terms of its purchasing power. You don’t want to have your assets in U.S. dollars.” John Williams, Economist

May 29, 2014

“Cheap credit has caused a stock market boom, debt boom and a borrowing spree that has financed trillions of mega-mergers. It is unsustainable. It is inflationary. History shows that the great inflations of the past were caused by profligate governments resorting to deficit financing to pay for everything from wars to tax cuts. It is not so different this time, only the debt load is the highest ever in American history. Inflation is alive.” John Ing, Editor

“The Brookings Institution found that for the first time on record U.S. Businesses are being destroyed faster than they’re being created.” Investor’s Business Daily

“On an inflation-adjusted basis, using the same data from John Williams, silver would need to hit $568 to match its 1980 equivalent.”  Jeff Clark, Editor

“News that China is soon to surpass the United States as the largest economy in the world is a stark reminder of how the American people are harmed by the welfare-warfare state, crony capitalism, and fiat currency.” Ron Paul, Congressmen

“In an economic system, if the goal of the authorities is to reduce some particular risks, then the sum of all these suppressed risks will reappear one day through a massive increase in the systemic risk and this will happen because the future is unknowable.” Karl Popper, Philosopher

“As Marxist despots and tribal socialists from Cuba to Greece have discovered to their huge disappointment, governments can neither create wealth nor effectively redistribute it, they can only expropriate it and watch it dissipate.”  George Gilder, Author

 “So far, we have experienced 7 million foreclosures. Beyond that there are still nine million homeowners seriously underwater in their mortgages, and there are millions more who are stranded in place because they don’t have enough positive equity to cover transactions costs and more stringent down payment requirements.” David Stockman, Economist

“As official consumer inflation continues its upturn in the months ahead, and as overall retail sales continue to suffer from the ongoing consumer liquidity squeeze, the data should continue to trend meaningfully lower, in what rapidly should gain recognition as a formal new or double-dip recession.” John Williams, Economist

May 8, 2014

“Mortgage lending declined to the lowest level in 14 years in the first quarter as homeowners pulled back sharply from refinancing and house hunters showed little appetite for new loans.” Wall Street Journal

“I’ve met so many people who are in the markets, thinking they are absolutely brilliantly smart, thinking they can get out at the right time. The problem is they all think that. And when everyone races for the exit at the same time, we will have big problems.” William White, Former Chief Economist,  BIS

 “Chief executives are turning to that old device for boosting sluggish profits: takeovers. A takeover boom is a classic signal of the final stages of a bull market, a sign that financial engineering has taken over from genuine business expansion. Student debt has nearly doubled since 2007 to $1.1 trillion.” Buttonwood – The Economist

“The United Sates exported a record amount of gold to Hong Kong in January.” SRSrocco Report

“Promises that the misnamed Affordable Care Act would reduce costs are already being proved wrong.  Health care spending is surging.” Cal Thomas, Author

“There is a clear consensus that we are witnessing our second tech bubble in 15 years.” David Einhorn, Hedge Fund Manager

“If you really believe that it’s best to sell investments when they are high, and buy them when they are low, now may be the time to sell your stocks and buy some gold and silver.”  Mark J. Lundeen, Editor

“I think that within a reasonable time frame silver will probably trade over 100 dollars.” John Embry, Analyst

I’m increasingly worried about holding dollars. We can still trade in tangible unbacked dollars for real wealth, silver and gold. I’m buying all the physical precious metals I can, while they are still available.”  Richard Russell, Editor

This eruption of late cycle bubble finance hardly needs comment. These maneuvers amount to piling more debt on already heavily leveraged companies, but not to fund capital expenditures or new products. No, the freshly borrowed cash from a leveraged recap gets recycled out as a dividend to the LBO sponsors. This is financial strip-mining pure and simple.” David Stockman, Economist

“We have long suspected manipulation, but it is now clear to us that both the physical and paper bullion markets have been tampered with for quite some time.” Eric Sprott, Asset Manager

“Having invaded the economic order like the proverbial bull in a China shop, the state’s kingpins, functionaries, and intellectual bootlickers then have the chutzpah to blame ‘market failures’ for the wreckage they themselves have created.” Robert Higgs, Author

“The arithmetic of government statistics (jobs, growth and inflation) is distorted and dishonest almost beyond measure.” Paul Singer, Hedge Fund Manager

“The honest truth is no one has ever seen anything like this. Not even during the Great Depression in the Thirties has monetary policy been this loose. And if you look at the details of what these central banks are doing, it’s all very experimental. They are making it up as they go along. I am very worried about any kind of policies that have that nature.” William White, Former Chief Economist,  BIS

“The liberal elite’s disdain for a middle America of businessmen and churchgoers, which has always been linked to an uncritical admiration for Europe, has with Obama’s reelection created a political order teetering on the edge of fiscal collapse.” Bruce Thornton, Editor

“Since Warren Buffett first referred to derivatives as ‘financial weapons of mass destruction,’ the potential derivatives bubble has grown from an estimated $100 trillion to over $700 trillion.” Dr. Doolittle

April 30, 2014

“The entire global economy now clings precariously to one crucial phenomenon. That is, how much longer can the central banks of the developed world artificially suppress interest rates at near zero percent?” Michael Pento, Editor

“It’s not the rich – it’s the total cost of government that is killing the economy.” Martin Armstrong, Editor

“I bought a batch of American Eagle one ounce silver bullion coins today, on the temporary weakness in silver. I believe silver is the single biggest bargain around, at today’s prices. I understand that physical silver is so scarce that the U.S. government is buying silver in the open market in order to mint its coins.” Richard Russell, Editor

“The U.S. government is the largest buyer of its own debt.” Grant Williams, Editor

“Around 30% of mined silver comes from primary silver mines. The current low silver price is below the cost of production for primary silver miners.” Theodore Butler, Analyst

“There is nothing that would support a sustainable turnaround in retail sales, personal consumption, housing or general economic activity. There never was a broad economic recovery, and there is no recovery underway, just general bottom-bouncing that is turning down anew.” John Williams, Economist

“The value of money should not change – for it is our security and we must be able to count on it to bring what we want in the future.” Aristotle

“The Earned Income Tax Credit alone costs taxpayers $56 billion per year. The government’s fastest growing entitlement program pays out up to $5,800 to a family of three.” Ian Smith, Editor

April 18, 2014

“The U.S. national debt is the perfect example of what our current debt backed monetary system allows: the perpetual rollover of past debts by government as it continually burdens the private economy with ever larger liabilities.”  Mark J. Lundeen, Editor

“A skeptic would have to be blind not to see bubbles inflating in junk bond issuance, credit quality, and yields, not to mention the nosebleed stock market valuations of fashionable companies like Netflix and Telsa. The overall picture is one of growing risk and inadequate potential return almost everywhere one looks.” Seth Klarman, Asset Manager

“The current structure of global finance is going to have severe problems in the not too distant future. How best to survive the coming crash in the debt backed dollar is a question that is constantly on my mind. In past failed monetary experiments, gold and silver proved to be safe harbors to those wise enough to see the inevitable conclusion.” Mark J. Lundeen, Editor

“Taking into account the sharp increase in taxes that took place at the end of the 2012 calendar year, while the U.S. economy cumulatively grew by 12.4% between 2010 and 2013 – federal tax receipts grew by 28.3%.” Daniel Amerman, Analyst

“Gold is a present from God and I wish it would go lower so I could buy more.” Dr. Marc Faber, Editor

“These good times in the financial markets are underpinned by lies and corruption at the highest levels of government and finance, and certainly can’t go on forever. Reducing your exposure to the financial markets and buying gold and silver bullion at current prices seems the prudent thing to do in a world where demand for stocks and bonds comes primarily from the Federal Reserve’s Open Market operations, and gullible investors who fear no evil.” Mark J. Lundeen, Editor

March 28, 2014

“It is the savings from the curtailment of consumption, combined with minimal government involvement in economic affairs which generates economic growth.”  Chris Casey, Economist

“Silver is gold on steroids. When gold takes off, silver goes up faster. So, the idea you are going to get an old high or better on silver is a given.” Jim Sinclair, Analyst
“It is clear to me the American Empire is in terminal decline. Hubris, delusion, corruption, foolish disregard for future generations and endless foreign follies have set in motion a chain of events that will lead to a cascading sequence of debt defaults, mass poverty, collapsing financial markets, and hyperinflation or deflation, depending on the actions of feckless bankers and politicians.” James Quinn, Editor

“The best raw material to hold in my opinion is silver. That’s what I felt 30 years ago and is what I feel today. Silver is one of the very few commodities that the average person is capable of holding in his own possession.” Israel Freidman, Writer

“For the week ended March 12, Treasuries held in custody by the Fed dropped to $2.855 trillion: a drop of $104.5 billion. This was the biggest drop of Treasuries held by the Fed on record, i.e., foreigners were really busy selling.” Bond Reporter

“One thing stock-market bulls need to keep in mind is that the Dow Jones’ current bull-run began on 9 March 2009, and historically, five years is a long time for the Dow Jones to increase by 150% without a major correction.” Mark J. Lundeen, Editor

“Real retail sales are showing the U.S. economy on the brink of formal recession; annual growth has dropped to levels showing a near-term recession to be in place.” John Williams, Economist

March 13, 2014

“For 50 years or so the federal government has deliberately and to an increasing extent misstated probable future budget deficits… Private firms that deliberately misrepresent their financial statements in this fashion would be guilty of a crime…The magnitude of the misrepresentation is breathtaking.”  William Poole, St. Louis Federal Reserve Bank President

“Last year, the U.S. Federal Reserve enjoyed its 100th anniversary, having been founded in a blaze of secrecy in 1913. By 2007, the Fed’s balance sheet had grown to $800 billion. Under its current QE program (which may or may not get tapered according to the Fed’s current intentions), the Fed is printing $1 trillion a year.  To put it another way, the Fed is printing roughly 100 years worth of money every 12 months. (Now that’s inflation.)” Dennis Miller, Editor

“There are four large U.S. banks that each have exposure to derivatives in excess of 40 trillion dollars.” Michael Snyder, Editor

“The plague of our time is Keynesian economics. It has destroyed the economics profession and enabled the political class to obtain powers never intended.” Monty Pelerin, Editor

“Birth rates for women on welfare are three times higher than for those who are not on welfare and unmarried women have twice as high a birth rate as married women.” Daniel Greenfield, Author

“Keynesian stimulus does not work. Only real austerity works. This means cutting government employee incomes and retirement benefits. Eliminating regulators and regulations, cutting taxes, and selling government assets would all aid in the recovery process.” Mark Thornton, Economist
“The day is coming when Mr. Bear is going to do what he was born to do – take out the trash from the financial system. You can say goodbye to ‘economic growth’ and hello to soaring interest rates when he comes back to work. The best way to survive what is coming is to own assets with no counterparty risks; gold and silver bullion come to mind.”  Mark Lundeen, Editor

“The simple truth is the Fed’s taper of asset purchases is going to lead to a collapse of stock and real estate values in the United States. And this will cause major turmoil in currencies, equities and interest rates across the globe.” Michael Pento, Author

“We are once again building toward a massive financial crisis – one that will make 2008 seem like the good old days.” Peter Schiff, Author

“Historically the dollar has been the safe haven in a political or financial crisis, but that hasn’t been the case for four or five years now. Instead, what you have seen is a flight to other traditional safe havens such as gold and the Swiss Franc. The dollar has lost its magic. Nobody wants to hold it.”  John Williams, Economist

August 21, 2013

“The problem is clear; every level of government has promised too much and is now faced with the politically unappealing prospect of either drastically increasing taxes for the working age population or significantly reducing benefits for the retired (or future retired).” Eric Sprott, Asset Management

“Total U.S. government and private debt-to-GDP was about 165% in 1980, and 33 years later, it is now at 350%. The total debt peak is 260%, in 1929, leading up to the Great Depression. Therefore, the U.S. has hit a debt ceiling.” Eric L. Prentis, Editor

“In the U.S., the Fed continues to argue that money printing and QE can generate growth. There is literally no evidence of this in history. Japan and the UK have both engaged in massive QE programs to little or no effect. However, the Fed is terrified of losing control of the system and wants to continue doing anything no matter how futile in order to maintain the appearance of confidence. God forbid anyone figures out the emperor has no clothes." Graham Summers, Analyst

“The world is swiftly moving into the dangerous place where nations won’t be able to do business with each other because they don’t trust the institutions that control wealth, which includes central banks, commercial banks, and governments. The roar you hear in the distance this September will be the sound of banks crashing, followed by the silence of business-as-usual grinding to a halt. After that, the crackle of gunfire.” James Howard Kunstler, Editor

“Lower silver prices force Hecla Mining to a $25 million net loss in Q2.” Reuters

“Japan’s eye-watering national dept has topped one quadrillion yen.”AFP


“More debt and more inflation are constantly being shoved down our throats without our consent. Nevertheless, the market always trumps government intervention…and eventually it will eschew our debt and currency. This means investors must protect themselves by owning precious metals from the inevitable economic chaos that is sure to come soon.” Michal Pento, Portfolio Manager “The primary silver mining industry is not sustainable at present market prices. During the first quarter of 2013, the top 12 primary silver miners had a net income gain of $90.7 million, but now face losses of more than $45 million.”
Steve St. Angelo, Editor

August 6, 2013

“Fundamentally silver remains an indispensable metal.  It is one that mankind cannot do without.  There will always be uses and demand for silver.”  Miguel Perez-Santalla, Author

“The quality of jobs in America continues to steadily decline.  Only 47 percent of adults have a full-time job at this point, and 53 percent of all American workers make less than $30,000 a year.   Most families are just barely scraping by from month to month, and Bernanke has the gall to say that he needs to try to get prices to rise even faster.”  Tyler Durden, Columnist

“The Federal Reserve has propped up equities and bonds using money created out of thin air – so much so that both markets have become totally reliant and disturbingly addicted to fiat injections.”  Brandon Smith, Editor

“The all-time high nominal price for silver in January 1980 of $49.70 per troy ounce has not been hit since 1980.  Based on April 2013 CPI-U inflation, the 1980 silver-price peak would be $148 per troy ounce and would be $583 per troy ounce in terms of April 2013 adjusted dollars [using the 1980 inflation measure].”  John Williams, Economist

“It is almost universally asserted that the severe economic crisis under which the world presently is suffering has provided proof of the impossibility of retaining the capitalist system.  Capitalism, it is thought, has failed; and its place must be taken by a better system, which clearly can be none other than socialism.  That the currently dominant system has failed can hardly be contested.  But it is another question whether the system that has failed was the capitalist system or whether, in fact, it is not anticapitalist policy – interventionism, and national municipal socialism – that is to blame for the catastrophe.”  Ludwig von Mises, Economist

“Indeed, the U.S. economy is slowing, and Mr. Bernanke knows it.”  John Williams, Economist

“This is not a time when anyone needs to invent bullish reasons for gold and silver moving higher.  What’s verifiable is bullish beyond belief.  The COT market structure in gold and silver has never ever been better.  The accumulation and short covering by JPMorgan is breathtaking.  Metal flows in gold and, particularly, in silver are astonishing.  The move below cost of production looks to be the final act to the downside and the Launching pad to the upside.  With real facts like these, who needs to make things up?”  Theodore Butler, Analyst

“In our modern nightmare era of hyper-centralized economy, one word or rumor from Ben Bernanke now determines whether stocks dramatically rise or fall.  This is not the behavior of a healthy and vibrant fiscal system.”  Brandon Smith, Editor

“In 1960, Detroit had the highest per-capita income in the nation.  Now, in 2013, it is the nation’s poorest city.”   Arnold Ahlert, Author

“Every government should be expected to have an inherent tendency toward growth.  And in maximizing its own wealth and income by means of expropriation, every government represents a constant threat to the process of civilization.”  Hans-Hermann Hoppe, Author

 “The most important question for the future of America is how we treat our entrepreneurs.  If our government continues to smear, harass, overtax, and oppressively regulate them, we will be dismayed by how swiftly the engines of American prosperity deteriorate.  We will be amazed at how quickly American wealth flees to other countries.”  George Gilder, Author

“The optimism over the housing recovery has gotten well ahead of the underlying fundamentals.  While there are many hopes pinned on the housing recovery as a ‘driver’ of economic growth in 2013 and beyond – the data suggests that it might be wishful thinking.”  Lance Roberts, Editor

“Right now, the mainstream media is very excited that the federal budget deficit for this year might be less than a trillion dollars, but they are really missing the point.  The debt of the U.S. government is still growing much, much faster than the economy.”  Michael Snyder, Editor

June 24, 2013

“In real terms our GDP is contracting by about $500 billion a quarter, after adjusting for debt expansion – that’s $2 trillion a year, more or less.”

Michael Shedlock
 
“History shows that desperate, insolvent nations almost invariably resort to vain attempts at despotic control – capital controls, wage and price controls, border controls, people controls.”

Simon Black

“I think we are going to go through the wringer.  I think it’s going to get much, much worse.”

Ron Paul

“The policies of central banks, combined with those of overbearing government, are crushing the middle class and with them the single most important bastion of democracy.”

John Browne

“Money and interest rate manipulations courtesy of the Fed have allowed the government to amass a debt load that far outstrips its tax base.  Therefore, since the tax base cannot support the amount of outstanding debt it will have to monetize in a more aggressive and permanent fashion.  In other words, if you think prices are already killing the middle class and destroying your standard of living; just stay tuned, the worst is yet to come.”

Michael Pento

“Nothing is normal: not the economy, not the financial system, not the financial markets and not the political system.  The financial system still remains in the throes and aftershocks of the 2008 panic and near-systemic collapse, and from the ongoing responses to same by the Federal Reserve and Federal government.  Further panic is possible and hyperinflation remains inevitable.”

John Williams

“We are very close to or at a major bottom in gold and silver now, regardless of the potential for another short term downleg.  This is made plain by the charts.  COTs and sentiment are now at extraordinary extremes not seen in the entire history of this bull market.  This means that when the turn really comes we are likely to see a scorching rally which will be driven by massive short covering that will leave most investors standing, mouths agape.”

Clive Maund

“Through relentless government propaganda nearly everyone today believes that state intervention is a force for good, but the truth is very different.  Government intervention amounts to reducing wages and destroying savings through monetary inflation, while putting prices up.”

Alasdair Macleod

“During its decline, ancient Rome’s consumer prices were rising.  The empire was funding its army and bureaucracy by overissuing its coins and by diluting their silver content, as well as with ever rising taxes.  This monetary inflation was a major factor in Rome’s decline.  Inflation didn’t foster “growth” then, and it won’t foster “growth” for the United States today.  In fact, history teaches that since money was invented, every time governments begin to inflate their money supplies, no matter the method, it ultimately results in a disaster.”

Mark Lundeen

“The fate of the nation and the fate of the currency are one and the same.”

Dr. Franz Pick

“When in April the U.S. government reported a surplus of $112.9 billion (thanks to tax collections, Fed and GSE remittances) – the largest surplus since April 2008, many wondered if DC’s profligate ways were over, and if maybe the so-called U.S. austerity was starting to kick in.  It wasn’t.  Because as the just released May data showed, not only did the U.S. go right back to its deficit ways, posting a negative surplus of $138.7 billion, the largest May deficit since 2009, but the amount the U.S. government spent, a total of $335.9 billion, was the largest May outlay in history, and the 4th greatest spending month.”

Zero Hedge

“The global economy is slowing once again.  The Central Banks are finding out that QE is no longer having a positive effect or even worse is now having a negative effect on the markets.  Stocks are in a bubble.  Bond markets are beginning to burst.  Rates are rising.”

Graham Summers

“The Department of Energy was instituted on 8/04/1977, to lessen America’s dependence on foreign oil.  And now it’s 36 years later and the budget for this ‘necessary’ department is at $24.2 billion a year.  It has 16,000 Federal employees and approximately 100,000 contract employees.  Thirty-four years ago 30% of our oil consumption was from foreign imports.  Today 70% of our oil consumption is from foreign imports.”

Night Watchman

“I think the Japanese situation is very dangerous because Japan’s tax revenues, when you look at the numbers, they have to use almost 50% to service their government debt – their Federal government debt.  So if interest rates rise further, Japan is basically bust.  I think this is a very dangerous thing that the Japanese are starting and I believe it will most likely be the trigger for the next big global crisis in financial markets and the world economy.”

Felix Zulauf

“In April, foreign investors, official and private, sold $54.5 billion of Treasury [bonds], the biggest monthly sale in history.”

T. Durden

“Global growth, earnings and incomes remain very subdued.  But at the same time financial markets, hooked on central bank ‘heroin,’ have created an enormous and – in the long run – untenable gap between themselves and the real economy’s fundamentals.  This gap is getting to dangerous levels, with positioning, sentiment, speculation, margin and leverage running at levels unseen since 2006/2007.”

Bob Janjuah

“There is a giant expanding bubble waiting to implode brought to us by a seemingly never ending supply of a monthly $85 billion flood of fiat money from the Federal Reserve.  Once the bubble actually bursts, the U.S. economy will be left in ruins.  When it bursts, there will be no new round of bailouts like the ones that the banks got in 2008.  Instead, American will descend into an era of zero-sum austerity and virulent political conflict, extinguishing even today’s feeble remnants of economic growth.”

Aubie Baltin

“The IRS refunds $4 billion child tax credits per year to illegal immigrants whose kids do not live in U.S.”

Michael Shedlock

“I think you all should be ready, because rates are going to go up.”

Jamie Dimon

 If you can receive 2-3 times as much money from unemployment, disability, and/or welfare benefits (subsidized housing, food stamps, free cellphones, etc.) as you can from a temporary or part-time job, and live a life of leisure, why work?”

Mises Institute

“Trying times like these are designed to wear you down and force weaker hands to capitulate before reversing.  We remain steadfast in our conviction that the precious metals investment thesis remains healthily intact, and that the real price action in the gold and silver story has yet to be seen.  And we see increasing evidence indicating that the next big upward reversal is near at hand.”

Adam Taggart

June 10, 2013

“The last two months – as homebuilder stocks surge and housing prices spike – have seen Architectural billings plunge by the most since November 2008.  The current level of activity is at its lowest since June 2012 – hardly indicative of the rampaging rapacious demand for homes that we are spoon-fed day after day.”

Zero Hedge

“Keep in mind the fundamental difference between precious metals and other financial markets: the former are seriously oversold and the latter seriously overbought.”

Alasdair Macloud

“$212,525,587,000,000 – According to the U.S. government, this is the notional value of the derivatives that are being held by the top 25 banks in the United States.  But those banks only have total assets of about 8.9 trillion dollars combined.  In other words, the exposure of our largest banks to derivatives outweighs their total assets by a ratio of about 24 to 1.”

Michael Snyder, Editor

“In ten years all important animal life in the sea will be extinct.”

Dr. Paul Ehrlich, 1970, a liberal favorite

“We could use up all proven reserves of oil in the entire world by the end of the next decade.”

President Jimmy Carter, 1972

“People with financial assets are all doomed.”

Marc Faber, Editor

“Every swindle is driven by a desire for easy money; it’s the one thing the swindler and the swindled have in common.”

Mitchell Zuckoff

“The risk is that the Fed is now caught within a ‘liquidity trap.’  The Fed cannot effectively withdraw from monetary interventions and raise interest rates to more productive levels without pushing the economy back into a recession.   The overriding deflationary drag on the economy is forcing the Federal Reserve to remain ultra-accommodative to support the current level of economic activity.  Mainstream economists and analysts keep predicting stronger levels of economic growth while all economic indications are just the opposite.” 

Zero Hedge

“There is a reason why the Fed and other central banks have been unable to achieve a healthy and viable economy even after five years of trying to manufacture one from a printing press.  The truth is an economy soaked in debt just doesn’t grow because it is always marked by at least one, if not all three, of the following growth-killing conditions: high interest rates, rampant inflation and onerous tax rates.”

Michael Pento, Analyst

“There has been no change in the underlying consumer-liquidity structural problems that are constraining consumption.  There is nothing that would support a sustainable turnaround in retail sales, personal consumption, housing or general economic activity.  There never was a broad economic recovery, and there is no recovery underway, just general bottom-bouncing that is turning down anew.”

John Williams, Editor

“I believe we are in a worse state now than ever before in this country.  With the surveillance state closing in on us, we are fighting to keep our country free from our own government.”

Nat Hentoff, Author

“Precious metal prices will soon explode out of control and take the vast majority by surprise.  The upward move will be so violent most will be afraid to buy in, until gold and silver have doubled and tripled in price.”

Ron Struthers, Editor

May 13, 2013

“Taxes of all kinds discourage production.  Man works to satisfy his desires, not to support the State.”

Franc Chodorov, Economist

“By focusing on increasing demand and consumption by any means, the Keynesian Cultists miss the key dynamics of sustainable growth and fail utterly and completely to acknowledge the corrupt and exploitative nature of our cartel-state crony-capitalism economy.”

Charles Hugh Smith, Editor

“The public may be ready to bail out of the prevailing banking model into things that have been considered ‘money’ for a few thousand years, namely real gold and silver.  The basic fact remains: there isn’t enough to go around.”

James Kunstler, Editor

“When the bond market finally does crack, it is going to be one epic nightmare that is going to make 2008 and 2009 seem like a picnic.  It will be a different kind of crisis; but it will be an enormous crisis.  These people that are bullish about stock and bonds and the bond market, they do not understand anything.”

Adam Taggart, Author

“The world we are living [in] isn’t capitalism, as many people would like to make you believe.  We live in a world of interventionism: that is government interfering in the market…This is what has brought about all the trouble we face today.  If we had true capitalism, we wouldn’t have the current problems, to be sure.”

Thorsten Polleit, Economist

“Soon the problems will become bad enough that they will hit the fan once again and this time, there will be real Hell to pay.”

Mark Grant, Editor

“The demand for silver has completely overwhelmed existing inventories and the ability of the mints and their refiners to produce more product.”

Robert Mish, Writer

“Can it really be a matter of dispute that existence of a high debt level should be taken as convincing evidence of a country where the petty tyrants in office and the host of public drones whom they employ have enjoyed far too much sway for far too long and so have clogged up the machinery of wealth creation with a plethora of regulations, a nest of subsidies, a tangle of vested interests, and a legacy of malinvested capital.”

Sean Corrigan, Commodity Manager

“A policy of artificially cheapened credit cannot but cause mispricing of risk, misallocation of capital and a deeply dislocated financial infrastructure, all of which will ultimately conspire to bring the fake boom to a screeching halt.”

Detlev S. Schlichter, Editor

“When it becomes serious, you have to lie.”

Jean Claude Juncker, Prime Minister of Luxembourg

“Let’s hope the Boston Marathon bomber is a white American.”

Salon - a popular Liberal website

“What we get from the administration instead of pragmatism is politics; instead of constructive strategies shed of ideology, we get steady attacks demonizing the wealth creators and discrediting the private sector, along with rhetoric that seeks to exploit divisions by blaming the rich and positioning them against the rest.”

Mort Zuckerman, Publisher

“Revenue to the government was $2.58 trillion in fiscal 2007.  But despite all the government spending and money printing by the Fed, revenue for fiscal 2013 is projected to be just $2.7 trillion.  The growth in Federal revenue has been just over $100 billion in 6 years!  Nevertheless, our publicly traded debt has grown by $7 trillion during that same time frame.  The fact is that the U.S. economy isn’t growing fast enough to significantly increase the revenue to the government, but our debt is still soaring.” Michael Pento, Asset Manager

“They won’t take our bank accounts…they will take our retirement accounts.”

Jim Rogers, Author

April 15, 2013

“I went to sleep Friday as a rich man.  I woke up a poor man.” John Demitriou, Retired Cypriot

“The probability of the largest disorderly default loss in history has increased dramatically.” Credit Suisse

“The U.S. Mint’s silver coin sales reached an all-time high of 13.2 million ounces in the first three months of 2013.  If annualized, the Mint would sell 52.8 million ounces of silver in 2013 – a new record.” David Baker, Analyst

“The major monetary metal in history is silver, not gold.” Milton Friedman, Economist

“Nothing can be more important to every intelligent man than economics.  His own fate and that of his progeny are at stake.  Whether we like it or not, it is a fact that economics cannot remain an esoteric branch of knowledge accessible only to small groups of scholars and specialists.  Economics deals with society’s fundamental problems; it concerns everyone and belongs to all.  It is the main and proper study of every citizen.” Ludwig von Mises, Economist

“From now onwards, in my view, the bailouts will also be at the expense of the asset holders, the governments will one day take away 20-30% of my wealth.” Marc Faber, Editor

“The most reliable constituency for Big Government is single women, for whom the state is a girl’s best friend, the sugar daddy whose checks never bounce.  A society in which a majority of births are out of wedlock cannot be other than a Big Government welfare society.  Ruining a nation’s finances is one thing; debauching its human capital is far harder to fix.” Mark Steyn, Author

“The economic repercussions of having people feel that their money is not safe in banks can be catastrophic.” Thomas Sowell, Author

“Expect to hand over anywhere between 30% and 40% of your hard earned assets to whatever parasitic government happens to be your host because in the new socialist international normal, ‘it’s only fair.’” Tyler Durden, Editor

April 1, 2013

“History has shown us time and again how money printing ends.  It never turns out well.  There is not one example where it has.” Graham Summer, Editor

“There never was a recovery, and none is pending.” John Williams, Editor

“We do not need any form of central planning.  We need the free market, which is another way of saying we need to let people make their own decisions, enter into the agreements of their choice, and be secure in their private property.” Lew Rockwell, Editor

“Nothing is normal: not the economy, not the financial system, not the financial markets and not the political system.  The system remains still in the throes and aftershocks of the 2008 panic and the near-systemic collapse, and from the ongoing responses to same by the Federal Reserve and Federal government.  Further panic is possible and hyperinflation is inevitable.” John Williams, Editor

“After spending $21 billion, the Department of Energy managed to create just 29,000 green jobs – which translates into $728,000 per job.” Bloomberg

“Yesterday Senator Tom Harkin introduced S.544, ‘a bill to require the President to develop a comprehensive national manufacturing strategy.’  In effect, Senator Harkin wants the President to centrally plan the economy.  Never mind that the President has zero experience in business or manufacturing.  But hey, this worked out so well for Stalinist Russia, it’s no wonder Mr. Harkin wants to copy that.” Simon Black, Editor

“Nations are not ruined by one act of violence, but gradually and in an almost imperceptible manner by the depreciation of their circulating currency, through excessive quantity.”  Nicholas Copernicus, 1525

“The deep dark secret of the entire European mess is that the minute a real legitimate bank run begins, it’s game over.  Spain got a taste of this last year when a bank run brought the country to its knees in less than six months.  Now that Cyprus has revealed that deposits are not safe in Europe, you better buckle up because the bank runs are coming.  And when they do, the European crisis will hit overdrive.  Once deposits flee, banks have to sell assets to meet the capital flight.  When banks have to sell assets to meet deposit flight, they need capital.  And European banks don’t have any extra capital.  They’re leveraged at 26 to 1 and would need to raise over 1 trillion pounds at least.  If you are not prepared for this…prepared for potential systemic collapse brought about by Europe…you need to act now.” Graham Summers, Editor

“Unlike gold, silver has huge industrial demand, and industry will pay whatever the price the market asks to obtain the silver they need.  If an automotive manufacturer uses $35 of silver to make a $40,000 car, do you believe they will stop buying silver if prices rise where it now costs $350 in silver to produce a $40,000 car?  And going without silver is out of the question for most of industry, as silver is used for its unique physical and electrical properties.” Mark J. Lundeen, Editor

“Much of the social history of the Western world over the past three decades has involved replacing what worked with what sounded good.” Thomas Sowell

March 14 2013

“Our government is becoming very good at the big lie.”

Charles Biderman, CEO TrimTabs

“The sustainability of Italian public finances is in jeopardy.  The euro crisis will therefore return shortly with a vengeance.”

Lars Feld, Advisor to Chancellor Merkel

“Washington has settled into a comfortable pattern: instant gratification for spending binges that do nothing for any of the problems they purport to be solving, assuaged by meaningless commitments to start the 12-step program next year, or next decade or next century.  No other big spender among the advanced democracies lies to itself about the gulf between its appetites and its self-discipline.”

Mark Steyn, Author

“The stock market has become totally detached from economic realities.  There is a term for when asset prices become detached from fundamentals, it’s called ‘A Bubble.’  This is the reason the Fed is beginning to shift its tone.  It realizes it has blown another bubble and that we’re likely headed for another crash.  And this time around the Fed will be totally out of ammo to stop it.  Unlike 2008 which was just a warm-up, this will be the real crisis featuring full-scale systemic failure.”

Graham Summers, Editor

“It is vital to understand that what we face is by no means the plain vanilla version of governments just printing into hyperinflation…Literally, you pray for only hyperinflation.  Society can survive that.  It cannot and has never survived an all out Sovereign Debt Crisis.”

Martin Armstrong, Author

“The United States’ current fiscal and monetary policies are unsustainable.”

Martin Feldsten, Economist

“If we can’t even cut federal spending by 2.4 percent without much of the country throwing an absolute hissy fit, then what hope does America have?”

Michael Snyder, Editor

“Inflation is on the rise in the financial system in a big way thanks to the Fed and other Central Banks’ money printing.  However, the Fed has now realized that things are beginning to spiral out of control.  As a result it is managing down expectations for further stimulus.  This will not contain inflation in any real way.  Indeed, we are beginning to get signs that a truly horrific inflationary storm is brewing.”

Graham Summers, Editor

“Central banks’ attempt to boost borrowing, consumption and wages by inflating asset bubbles leads to the poverty effect, not the wealth effect.”

Charles Hugh-Smith, Editor

“$118 million an hour: that is how much money the Federal Reserve Bank of the United States is creating as you wake, work or sleep.”

Mark J. Grant, Author

“The malfeasance of the U.S. government and the Federal Reserve in the handling of fiscal and monetary policy has been a primary driving force behind the spike in gold and silver prices of recent years.  That malfeasance is getting much worse, at an escalating pace.  It is not about to get better.”

John Williams, Editor

March 4, 2013

“If you have not already taken steps to prepare for systemic failure, you need to do so now.  We’re literally at most a few months, and very likely just a few weeks from Europe’s banks imploding, potentially taking down the financial system with them.  Think I’m joking?  The Fed is pumping hundreds of billions of dollars into EU banks right now trying to stop this from happening.”

Graham Summers

“The Austrian School is enjoying its most spectacular surge in growth in its entire history.  A generation of smart young people are reading everything they can find on Austrian economics.”

 

Lew Rockwell

 “Zimbabwe’s stock market was the best performer this decade – but your entire portfolio now buys you 3 eggs.”

Kyle Bass

“They say that time is money.  What they don’t say is that money may be running out of time.”

Bill Gross

“Trillions of dollars of debts may be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives.”

Kyle Bass

“The financial world, at the moment, is a scary place.  The signs of this are all about us and yet the consensus view is to worry about nothing.  This has been caused by one singular action which is the orchestrated input of cash into the financial system by every major central bank on Earth.  Money will go somewhere as it is created which is exactly why the markets are close to all-time highs while economic conditions have crumbled precipitously.  It is not this market which is in a bubble but all of them and it is systemic by its very creation.”

Mark J. Grand

“There are tens of millions of conservative American patriots who seek an opposition party to represent their conviction that America will not get back on the path to strength and prosperity without restoration of freedom, limited government, free markets and traditional values.  Today’s big question is whether the Republican Party is going to be that opposition party.  If not, it is not conservative values and convictions that will be abandoned.  It will be the Republican Party.” 

Star Parker

“Every great cause begins as a movement, becomes a business, and eventually degenerates into a racket.” 

Eric Hoffer

“More and more governments and Central Banks are now turning to policies which, they hope, will make the currency they issue lose purchasing power faster than the currencies issued by their trading ‘partners.’  The planned end result of these policies is to reduce the purchasing power of their own citizens faster than other governments can do likewise.  This is popularly called a ‘beggar they neighbor’ policy.  It is, in fact, a ‘beggar thyself’ policy.”

Bill Buckler

“The situation is getting worse and worse and worse.  We are running a massive six decade Ponzi scheme, and it’s fast coming to a real breaking point.”

Lawrence Kotlikoff

“Worldwide debt stands at $220 trillion, a figure that when compared with world GDP of $62 trillion, shows a debt to GDP ratio of 350% and still growing exponentially.  Common sense should tell you that it is not sustainable.”

Aubie Baltin

“At the end of the day, Spain will default which will suck several hundred billion Euros worth of collateral out of the system at which point we’ll experience a Lehman-type event times ten.”

Graham Summers

“The first stage of the inflationary process may last for many years.  While it lasts, the prices of many goods and services are not yet adjusted to the altered money relation.  There are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in a considerable rise of all prices, although the extent of this rise will not be the same in the various commodities and services.”

Ludwig von Mises

“The underpinnings of our economy and financial system are so precarious that the un-abating risk of collapse dwarfs all other factors.”

Seth Klarman

“The penny currently costs almost 3 cents to make and the nickel more than 10 cents.”

Bloomberg

“If you normalize interest rates, I’m not talking about a spike, just normalize where they were before QE and took them to 5.7%, Federal funding costs of the debt, that’s $500 billion a year in [added] interest expense that goes out the door.  We’re having a heart attack over an $85 billion sequester when we can lose $500 billion just if you normalize.”

Stanley Druckenmiller

February 19, 2013

“Any society that would give up a little liberty to gain a little security will deserve neither and lose both.”

Benjamin Franklin

“Beware the greedy hand of government, thrusting itself into every corner and cre4vice of industry.”

Thomas Paine

“If the practice persists of covering government deficits with the issue of notes, then the day will come without fail, sooner or later, when the monetary systems of those nations pursuing this course will break down completely.  The purchasing power of the monetary unit will declined more and more, until finally it disappears completely.”

Ludwig von Mises

“No longer are Republicans arguing with Democrats about whether government should be big or small.  Instead they are at odds over what kind of big government the U.S. should have.”

Janet Hook

“The foremost corporate responsibility is to serve others so well you produce a profit.”

James Cook

February 4, 2013

“Small businesses are evaporating like ice cubes scattered on a Death Valley highway in July.”

Charles Hugh-Smith, Editor

“Based on generally-accepted-accounting principles – or GAAP-based accounting – the 2012 consolidated financial statements of the United States Government showed a $6.9 trillion deficit for fiscal 2012, up from $4.6 trillion in 2011.  The latest detail published by the U.S. Treasury showed the uncontainable and uncontrollable actual federal budget deficit to be deteriorating rapidly.”

John Williams, Editor

“The situation is getting worse and worse and worse.  We are running a massive six decade Ponzi scheme, and it’s coming to a real threatening point…We are using accounting that would make Bernie Madoff blush.”

Professor Laurence Kattikoff, Economist

“Hard work and earning a living are the ethics of past generations that are slowly being ground to dust in the flurry to socialize America and re-distribute wealth.  Having succeeded and having money is now thought of as a crime not far behind rape and arson.”

Mark Grant, Author

“Structural liquidity issues tied to contracting real consumer income, and to lack of expansion in consumer credit, continue to prevent sustainable real growth in broad economic activity, let alone personal consumption and retail sales.”

John Williams, Editor

“The policies of the socialist Left, under the banners of ‘social justice,’ ‘equality,’ and ‘compassion,’ have inflicted catastrophe in many forms – poverty, moral decline, criminality, violence, illness, and death – upon countless millions of people in the U.S. and around the world.”

Freedom Center

“If the U.S. loses another triple AAA rating, then the financial markets could face systemic risk.  The reason is that U.S. Treasuries are one of the senior most forms of collateral used by the banks to backstop the $600+ trillion derivatives market.”

Graham Summers, Editor

“In the not too distant future the U.S. will face a collapse in our bond and currency market similar to what is happening in Europe.”

Michael Pento, Asset Manager

“Currently politicians, lawyers, regulators, economists and predatory-bankers have more control over American business than do the businessmen who actually do something economically useful.  When the house of cards now called ‘the economy’ comes tumbling down, watch our financial media call it a failure of Capitalism.  But it won’t be; it will be a failure of our left-leaning Big Government and Academia.”

Mark J. Lundeen, Analyst

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure.  It is a sign that the U.S. Government can’t pay its own bills.  It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies.”

Barrack Obama, 2006
 
“When this crisis is over most people will not have a pension that they can live on.”

Egon Von Greyerz, Analyst

“The next time you go to the supermarket take a good look at the content you get for the price you pay.  Pay attention to it over time and you’ll be surprised to see it shrink.  They’ll be no notices or fan fair, just less content for the same price.  That’s inflation, and it will never show up in the statistics.”

Robert M. Williams, Analyst

“The actions of the Federal Reserve in order to maintain the extreme health of the U.S. bond market are no different in their implications than Weimar financial moves were to avoid the economic pain of reparations or for that matter Zimbabwe’s constant Federal borrowing.”

Jim Sinclair, Analyst

“The melancholy truth is that our debt, deficit, and entitlement problems will not be seriously addressed until a critical mass of citizens feels the pain of these self-interested, shortsighted, catastrophic policies.”

Bruce Thornton, Editor

 

“Money printing doesn’t work.  It has been tried for 2,000 years and hasn’t worked.  It always ends in tears…”

Fred Hickey, Analyst

“Federal debt figures don’t include any of the additional $5.48 trillion in debts held by various government agencies.  Nor do they include any of Fannie Mae’s or Freddie Mac’s obligations, two private companies that were taken over by the federal government during 2008 and whose total obligations stand at a little more than $5 trillion.  When you add these other, genuine, federal obligations that exist right now, today, you come up with a total debt figure that’s much more than $20 trillion.”

Porter Stansberry, Editor

“Government does not create; government destroys.  And the bigger government gets, the more it destroys.” 

Andy Sutton, Market Strategist

January 21, 2013

“Irredeemable paper money has almost invariably proved a curse to the country employing it.”

Irving Fisher, Economist

“Years of unsound ‘money’ and credit have done their dirty work.  The Great Credit Bubble has created a badly maladjusted economic structure.  Our economy’s capacity to create real wealth has been badly diminished, while our debt load just spirals out of control.  As a society, we’ve over-promised and do not have the capacity to deliver.  Yet we still believe issuing additional financial claims improves the situation.  Not unpredictably, we’ve reached the late and precarious stage of an inflationary cycle where more monetary inflation just demands more monetary inflation.”

Doug Noland, Editor

“The Keynesian Model no longer works, it is counter-productive and destructive.” Charles

Hugh-Smith, Editor

“In the entire history of man, no fiat currency (with nothing but a government promise behind it) has ever survived!  And you think our current Federal Reserve notes will be the great exception?”

Richard Russell, Editor

“The slow pace of national ruin is itself insidious, creating the illusion that the problems are not that great or can be solved later.”

Bruce Thornton, Editor

“Federal civilian employees in 2011 averaged $128,226 in total compensation ($84,671 in wages and $43,555 in benefits).  Private-sector workers, meanwhile, earned half of that: ($53,463 in wages and $11,099 in benefits)…The Federal workforce has become an elite island of secure and high-paid workers, separated from the ocean of average America workers competing in the global economy.”

Chris Edwards, Analyst

“Americans have virtually no clue how fast things can change once investors lose confidence in our ability to get our fiscal act together.”

Arnold Ahlert, Columnist

“Deteriorating chances of the U.S. government taking any serious action to address its sovereign-solvency issues continues to hold the potential for extremely negative selling pressure on the U. S. dollar in the global markets, for significant upside pressure on domestic inflation, and for severe intensification of the ongoing economic and systemic-solvency crises.”

John Williams, Economist

“There is a 0% chance of any Fed exit ever.  This entire experiment ends with civil unrest and martial law.  That is the exit strategy.”

Michael Krieger, Editor

“The Federal Reserve continues its reckless printing, borrowing and spending while our leaders continue the ruination of our dollar.  The world is watching the charade and will, at some point, give up on the U.S. dollar and throw their hands up in surrender.  When that happens, it will be an economic tsunami for the U.S. economy.”

Roxanne Lewis, Editor

“The United States is truly submerging.”

Jim Grant, Editor

“The debt crisis is eating its way ever further into the budgets of Europe’s core countries, but policymakers are celebrating the obfuscation of this fact as a success.” Hans-Werner Sinn

“All economic data in the U.S. at this point is completely meaningless, with regional distortions, seasonal adjustments, political pressures and overall central planning making a mockery of the U.S. economic data apparatus.”

Zero Hedge

“The economic implosion in Europe is accelerating.”

The Coming Depression

“The largest recipients of U.S. bailouts were in fact foreign banks based in Europe.  Also bear in mind that the biggest beneficiaries of QE2 were European banks.”

Graham Summers, Editor

“The prevailing political realities of the United States do not allow for any meaningful course correction.  And, without meaningful course correction, America is doomed.”

Mark Steyn, Author

January 7, 2013

“With his perspective and theories, Dr. Bernanke…is now surrounded by a group of likeminded ‘Keynesian’ academics, and they together perpetuate groupthink in epic proportions…there’s no doubt these unchecked ‘academics’ are operating with dangerously flawed theories and doctrines.”

Doug Noland, Analyst

“The excessive cost of infrastructure, in which a railroad from Boston to Washington is estimated to cost $150 billion and take 30 years to build, is very largely due to the jungle of environmental, safety and other regulations which now bedevil any large project.  Infrastructure projects now cost about 10 times what they did in 1900-50, in real terms, and at least double the highly regulated European Union.  The U.S. economy cannot survive with this additional burden, which imposes heavy costs and additional delays on even the simplest activity.  Without the 1970s increase in regulation, GDP would today be 45% higher.”

Martin Hutchinson, Author

“In Germany, gold is now available from vending machines in airports and railway stations – Gold to Go.  Shoppers can buy a 1-gram wafer of gold or a larger 10-gram bar.”

Satyajit Das, Author

“We have just seen a big increase in QE or are about to, Europe continues to ease and now we are going to see huge money creation in Japan, probably more so than ever, after Japanese elections.  Japanese voters elected a new prime minister who’s vowed to adopt a large stimulus, cut interest rates and take other measures to revive growth in the No.3 global economy.”

Ron Struthers, Editor

“In 2011, the Fed bought over 70% of U.S. debt issuance.  Based on the projections for QE 5, the Fed will buy upwards of $480 billion of the $918 billion in new U.S. debt issuance.  Between this and the Fed’s monthly monetization of $45 billion worth of Mortgage Backed Securities, the Fed will be soaking up 90% of all net new dollar-denominated fixed-income assets next year.  There are several implications to this.
1) The U.S. will be lurching ever closer to an EU-style debt crisis.
2) There will be an even greater shortage of high quality collateral in the financial system going forward.
3) Inflation will continue to rise.”

Graham Summers, Editor

“Investors are choosing to buy silver at a ratio to gold that is well above what is available.  This uptrend doesn’t show any signs of slowing either…physical silver sales relative to gold are greater than 50:1.”

Eric Sprott, Asset Manager

“It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments.  Ideologically, it belongs in the same class with political constitutions and bills of rights.”

Ludwig von Mises, Economist

“When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it.”

Frederic Bastiat, Economist

“We must question the morality of Fed programs that trick people (as if they were Pavlov’s dogs) into behaviors that are adverse to their own long-term best interest.  What kind of government entity cajoles savers to spend, when years of under-saving and over-spending have left the consumer in terrible shape?  What kind of entity tricks its citizens into paying higher and higher prices to buy stocks?  What kind of entity drives the return on retiree’s savings to zero for seven years (2008-2015 and counting) in order to rescue poorly managed banks?  Not the kind that should play this large a role in the economy.”

Gordon T. Long, Asset Manager

“As Milton Friedman taught us, spending is a far more accurate gauge of the government burden.  If government spends a dollar, that dollar is taxed away from someone.  If it’s borrowed, it’s removed from productive use, setting the stage for higher taxes later.  If the government prints more dollars to fund spending, our purchasing power falls.  Transferring purchasing power from the people to the government via inflation is a form of taxation.”

John Stossel

“Inflationary cycles always create powerful constituencies.  After all, credit booms and the government printing press provide incredible wealth-accumulating opportunities for certain segments of the economy.”

Doug Noland, Analyst