1. The term Capitalism was popularized by Karl Marx and Friedrich Engels. They explicitly used it to refer to people who owned private capital. It describes their interpretation of markets — from a Communist perspective. It is based on the context of their time (and ours) — in which governments own a significant portion of the capital in society and the economy. It is incomplete, and utterly incompatible with concept of free markets – especially as defined by the Austrian School of Economics. Read More…
A few weeks ago, I wrote an article about Bitcoin — the new encrypted, peer-to-peer currency that has everyone buzzing. I’ve done some research since my initial post, and I have to say, I’m not as excited as I was. Read More…
If you haven’t already come across one of the multitudinous articles flooding the Internet these days about Bitcoin, I’ll enlighten you: Bitcoin is the first successful digital crypto-currency. It is the first viable threat to monopolistic, uncompetitive government-issued money. And it is proliferating. Read More…
Your government would have you believe that prices — on the whole — declined for most of 2009, and have been increasing at only a snail’s pace since. The metric the government uses for determining this aggregate rate of change is the consumer price index — or the CPI.
And, as usual, your government is lying to you. Read More…
The United States is a nation full of spoiled brats. If we can’t have what we want, we borrow it. And if we can’t borrow it, we force politicians to give it to us. Read More…
This is a great article from the Mises Institute today, regarding the failure of Iceland’s currency, why it happend, and how it will ultimately happen to all fiat currencies (including the almighty dollar). Here’s an excerpt:
“As Richard Cantillon noted in his Essay on Economic Theory, enslaved humans usually produce for their masters about half the amount of finished goods that freed slaves produce for themselves. The great trick of the world’s elite may therefore have been to yoke the rest of us into debt slavery, without us realizing it, to feed their insatiable greed for power over the rest of us and to extract wealth from the rest of us, thereby avoiding Cantillon’s half-production trap, and thereby avoiding the need for they themselves to be in any way useful to anyone else.”
Disclosures: Paco is long gold and oil, and short Treasuries — all through leveraged ETFs.
Inflationary price increases are not coming. They’re already here. The Fed wants you to believe that we are still experiencing falling prices, but the Fed also wants to tell you that food (commodities) and energy don’t count. The Fed is lying to you. Read More…
“Markets can remain irrational longer than you can remain solvent.”
– John Maynard Keynes
I wish I had ten dollars for every market novitiate who had the temerity to enlighten me with the above quote in response to my proclamation that U.S. Treasuries are doomed to fail. Of course, then I’d be holding stacks of paper bearing the face of evil incarnate — Alexander Hamilton. By the way, yes, I did adjust my cliche for inflation. Read More…
Did you know that some of the most powerful entrepreneurial ideas in the lexicon of human knowledge arose from the ashes of economic catastrophe? It’s true. And the reason is a lot simpler than you think: when times get tough, unemployment increases. So what do people do? They become entrepreneurs.
If you’re thinking about starting a business — or even keeping one afloat in this economy — don’t be discouraged by the climate. If anything, find inspiration in the fact that — no matter what happens — things will turn around eventually. Read More…
I know you probably don’t believe it; you’ve heard it all before, and yet everything has turned out okay, hasn’t it? Sure! If “okay” means a failing currency, hyperinflation, a systematic destruction of the middle class, and the end of the United States’ role as the world’s preeminent financial power — and, indeed, its role as a sovereign nation. Yep. Things are just great.
Yes. I said deficit. Not debt.
According to the Obama Administration, the U.S. deficit will reach $18.6 trillion by 2020. Now let me ask you this: when has an administrattion ever underestimated a deficit?
And to move things even further into the red, let’s talk about U.S. debt. Read More…
3-29-10-paco-ahlgren-bottom-violation-podcast — Social Security goes in the red, Obama wins healthcare, Geithner’s response to the U.S. AAA rating threat, gold, and more…