Japan’s “Money Illusion” Will Fail, Goldman Warns

The Bank Of Japan (BOJ) says it is looking for consumer spending to stay on a recovery path, focusing on the relatively small increase in nominal wages rather than the steep slide in real wages. Goldman believes the BOJ’s view is founded on money illusion; and crucially, expect the positive effects to be clearly outweighed by the negative impact of lower real wages, and on a net basis see consumption falling. Simply put, once people wake up to the illusion of money, its impact will also fade.
Via Goldman Sachs’ Naohiko Baba,
Can the BOJ rely on ‘Money Illusion’? (Spoiler Alert – No!)
Nominal wages have finally edged into positive territory after more than 18 months of Abenomics. However, prices have spiked on cost-push inflation driven by yen depreciation since mid-2013and on the consumption tax hike in April 2014 (from 5% to 8%). As a result, real wages were still in negative territory (-1.4% yoy) even as of July, when the outcome of the successful spring wage negotiations should have been almost fully factored in.

This post was published at Zero Hedge on 09/05/2014.

THERE GOES THE JOBS RECOVERY STORYLINE

The Wall Street jackoffs all expected an increase in jobs of 200,000 to 250,000 for August. I guess being off by 30% to 40% is considered accurate for an Ivy League educated economist making over $1 million per year. The manipulated, massaged, seasonally adjusted, excel spreadsheet employment data has been released for public consumption by our keepers. They will now tell you what you are supposed to believe regarding the fake numbers. Maybe the weather was too warm for hiring. Maybe it rained or didn’t rain. Maybe ISIS and the looming threat of terrorist attack is deterring employers from hiring. It couldn’t have anything to do with Obamacare, Federal Reserve policies, government regulations and taxes, or the fact that families have 40% less net worth today than they had in 2007.
It’s actually far worse than the reported headline. One survey says 142,000 jobs were added. Of course the BLS excel spreadsheet birth/death adjustment added 102,000 jobs to the calculation, the highest adjustment for August in history. We all know small businesses are hiring like mad before full implementation of Obamacare after the elections. The broader population survey shows that only 16,000 more people were employed in August than in July. The MSM is silent about that number. The sheep must be kept sedated. And now for the best part. While reporting horrifically bad employment numbers, our beloved BLS drones also reported the unemployment rate dropping to 6.1%, the lowest rate in six years. Glory be!!! The economy must be booming and workers must be so ecstatic they are spending like there’s no tomorrow. What? Retail sales have been declining? How can this be? It sure smells like someone took a shit under the bed and won’t admit it. But let’s ignore the cognitive dissonance you are feeling and dig into the bullshit BLS numbers to get a few kernels of truth:

This post was published at The Burning Platform on Sept 5, 2014.

ECB Now a Hedge Fund; 1T Bazooka; ECB Promotes Euro Carry Trade; Draghi Has it Backwards

Draghi Has it Backwards
A director at a global financial company with offices worldwide pinged me in response to my post ECB’s 40bn Stimulus Gamble: ECB Pulls Out Bazooka, Cuts Rates, Buys Assets; Will this Stimulate Lending?.
Hello Mish,
Mario Draghi is an idiot. Banks create money when they lend. The loans create a requirement for reserves which ultimately reverts back as deposits at the ECB. The negative interest rate is therefore a tax on capital and a tax on lending. This not rocket science.
I’d start a charity whereby every newly appointed central bank board member is sent a free copy of Rothbard’s Mystery of Banking except I am beginning to doubt their ability to read.
Name Withheld by Request
Bond Bubble GrowsI responded to “NW” with “I agree 100%. All they have done is give banks the incentive to park money on sovereign bonds with diminishing yield. The bond bubble grows.“It is ridiculous that Spanish and Italian 10-Year bonds trade at a lower yield than 10-year us treasuries, yet that is the current state of affairs.

This post was published at Global Economic Analysis on Friday, September 05, 2014.

Travails of an American Tax-Victim Overseas

In a recent article on LRC, tax specialist and Forbes columnist Robert Wood shared a letter that one of his clients, Marilyn, had sent to President Obama about the travails of being a US Citizen who lives outside of the good ol USA. In order to explain more fully what is going on with offshore citizens, I’ve taken the liberty of writing a response from President Obama. I’m in the same boat as Marilyn and have suffered from the same outrageously punitive and discriminatory rules that she has.
Dear Marilyn,
My staff mentioned that we received your letter and that you were considering ending your status as US citizen because of my rules on reporting foreign financial accounts and treatment of foreign mutual funds. I know there’s lot’s of folks just like you who live offshore, so we’ve come up with some responses to your concerns.
Yes, my FBAR form has draconian penalties if you don’t fill out the paperwork for all of your financial accounts correctly [rubs palms together]. To make things easier on you, I’ve instructed the IRS to institute a voluntary disclosure program for people who don’t fill out the paperwork correctly. You tell us everything and we’ll consider only taking half instead of all of the account balance and we’ll even consider waiving the 5 year jail sentence in most cases. According to a precise reading of the rules, we could fine you far more than the account balance, so be thankful.
And to further ease your burden of running to the post office and mailing in your account information on the FBAR form each year, the form is no longer accepted by mail. If you’re foolish enough to mail in the form in order to report your accounts, we’ll treat that form as evidence of non reporting, subjecting you to the draconian penalties. [smirks and covers mouth with his hand]. I’ve also given the form a more user friendly name. Instead of FBAR, it’s called FinCEN Form 144(a). Your high priced tax guy can send in the information via the internet, where you can be sure the information is safe. [giggles]

This post was published at Lew Rockwell on September 4, 2014.

Do You Receive Free Lunch at Work? The IRS Wants to Tax it…

The IRS. There are few agencies more hated, corrupt, and degraded in the entire nation, and that’s saying a lot.
Unless you have been living under a rock for the past couple of years, you are well aware of the fact that the IRS was caught consistently abusing its extraordinary power in order to selectively target groups with which leadership disagreed with politically.
We also know that the IRS, and its former director of the Exempt Organizations Unit, Lois Lerner, subsequently destroyed evidence of misconduct by claiming emails had been lost and are unrecoverable, in a ludicrous series of purported events.
I thought the following Tweet summarized my sentiments as well as anything else I have seen…

This post was published at Liberty Blitzkrieg on Sep 4, 2014.

‘Now We Are At The Lower Bound’: Draghi Reaches The Dead-End Of Keynesian Central Banking

Europe is not growing much because most of its economies have been crushed under a mountain of debt, taxes, welfarism and statist dirigisme. Yet somehow the foolish pettifogger running the ECB thinks that driving the cost of money to the ‘lower bound’ (i.e. zero) will help overcome these insuperable – and government made – barriers to prosperity.
Yet in today’s financialized economies, zero cost money has but one use: It gifts speculators with free COGS (cost of goods sold) on their carry trades. Indeed, today’s 10 basis point cut by the ECB is in itself screaming proof that central bankers are lost in a Keynesian dead-end.
You see, Mario, no Frenchman worried about his job is going to buy a new car on credit just because his loan cost drops by a trivial $2 per month, nor will a rounding error improvement in business loan rates cause Italian companies parched for customers to stock up on more inventory or machines. In fact, at the zero bound the only place that today’s microscopic rate cut is meaningful is on the London hedge fund’s spread on German bunds yielding 97 bps – -which are now presumably fundable on repo at 10 bps less.
Needless to say, when your only tool is a hammer, everything looks like a nail. And when you are a Keynesian with a hammer, it is presumed that nothing much was hammered before yesterday. That is to say, the whole mindless drive by the ECB toward the zero bound, which Draghi pointedly claimed to have achieved this morning, presumes that balance sheets – – the accumulated record of past actions – don’t matter.
Instead, its all about the credit ‘flow’ today and tomorrow. Accordingly, lower interest rates – no matter how trivial the change – are ritualistically presumed to stimulate more borrowing in the real economy, and therefore more spending, income and virtuous circle of Keynesian growth.

This post was published at David Stockmans Contra Corner on September 4, 2014.

Federal Reserve Warns That “College May Not Pay Off for Everyone”

Back in May, the one regional Fed that has come to symbolize everything that is wrong with being a “master of the obvious”, and conducting pre-K level research at the expense of millions in dollars in taxpayer funds, and also the Fed where the current Fed charimanwoman emerges from, that of San Francisco of course, conducted one of its trademark frontal lobe-combusting “studies.” Specifically, that purveyos of intellectual titanism asked (and answered) “Is It Still Worth Going to College?” The SF Fed’s answer, in a nutshell, was a resounding “yes” as one would expect of course: because in a world in which marginal revolving debt demand is virtually zero, the only source of consumer credit – that opiate for the Keynesian masses and certainly for their shamans – for the past five years, is simple: car loans and, to a far greater degree, student loans.
Which is why we were shocked to find today that the “other” Fed, the one housing the most powerful trading desk in the known world, that located at Liberty 33, today issued a research piece with a very different conclusion, namely that “College may not pay off for everyone.” But… that does not jive with the west coast Fed’s kindergarten level, blanket summary. How is this east-vs-west coast Fed rivalry possible?
For the answer, we go to the NY Fed’s paper, presented below.

This post was published at Zero Hedge on 09/04/2014.

‘Now We Are At The Lower Bound’: Draghi At The Dead-End Of Keynesian Central Banking

Europe is not growing much because most of its economies have been crushed under a mountain of debt, taxes, welfarism and statist dirigisme. Yet somehow the foolish pettifogger running the ECB thinks that driving the cost of money to the ‘lower bound’ (i.e. zero) will help overcome these insuperable – and government made – barriers to prosperity.
Yet in today’s financialized economies, zero cost money has but one use: It gifts speculators with free COGS (cost of goods sold) on their carry trades. Indeed, today’s 10 basis point cut by the ECB is in itself screaming proof that central bankers are lost in a Keynesian dead-end.
You see, Mario, no Frenchman worried about his job is going to buy a new car on credit just because his loan cost drops by a trivial $2 per month, nor will a rounding error improvement in business loan rates cause Italian companies parched for customers to stock up on more inventory or machines. In fact, at the zero bound the only place that today’s rate cut is meaningful is on the London hedge fund’s spread on German bunds yielding 97 bps – -which are now presumably fundable on repo at 10 bps less.

This post was published at David Stockmans Contra Corner on September 4, 2014.

Icahn, Soros, Druckenmiller, And Now Zell: The Billionaires Are All Quietly Preparing For The Plunge

“The stock market is at an all-time, but economic activity is not at an all-time,” explains billionaire investor Sam Zell to CNBC this morning, adding that, “every company that’s missed has missed on the revenue side, which is a reflection that there’s a demand issue; and when you got a demand issue it’s hard to imagine the stock market at an all-time high.” Zell said he is being very cautious adding to stocks and cutting some positions because “I don’t remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people’s thinking.” Zell also discussed his view on Obama’s Fed encouraging disparity and on tax inversions, but concludes, rather ominously, “this is the first time I ever remember where having cash isn’t such a terrible thing.” Zell’s calls should not be shocking following George Soros. Stan Druckenmiller, and Carl Icahn’s warnings that there is trouble ahead.
Billionaire 1: Sam Zell
On Stocks and reality…
“People have no place else to put their money, and the stock market is getting more than its share. It’s very likely that something has to give here.” “I don’t remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people’s thinking,” he said. “If there’s a change in confidence or some international event that changes the dynamics, people could in effect take a different position with reference to the market.”

This post was published at Zero Hedge on 09/03/2014.

“A Printer And A Prayer” – The Three Problems With The Fed “Liquidity Coverage Ratio” Plan

A little over a week ago we wrote that in order to mitigate problems arising from record debt and soaring NPLs, the G-20 had a modest proposal for global banks: more debt. Specifically “in November said leaders will agree “that the world’s top banks must issue special bonds to increase the amount of capital which can be tapped in a crisis instead of calling on taxpayers to come to the rescue, industry and G20 officials said.” In other words, suddenly the $2.8 trillion in Fed injected excess reserves, split roughly equally between US and European banks, are no longer sufficient, and while regulators are on one hand delaying the implementation of Basel III and its tougher capital rules, on the other they are tactically admitting that whatever “generous” capital buffer banks have on their books right now will not be sufficient when the next crisis strikes.”
The proposal for the first time introduced GLACs, or bonds known as “gone concern loss absorption capacity”, seen by regulators as essential to stopping the world’s 29 biggest lenders from being “too big to fail.”
Some of our thoughts at the time: “according to the G-20, instead of having to collapse liabilities to offset that scourge of the New abnormal, namely Non-Performing Loans, banks are hoping to lever up, pun intended, the current scramble for yield and instead beef if up their cash asset, even if it means increasing the liability side of the balance sheet by issuing more debt. Because really all the GLAC do is limit how the banks may use the proceeds from such bond issuance. Then again, these being banks, one can be certain that the moment the GLAC cash is wired in, the funds will be used to ramp risk instead of sitting in a drawer somewhere, awaiting rainy days. Because nobody in a bank is paid for avoiding a crisis, and everyone is paid to generate a return even if it means making the systemic bubble even bigger.”

This post was published at Zero Hedge on 09/03/2014.

Icahn, Soros, Druckenmiller, And Now Zell: The Billionaires Are All Quietly Preparing For The Market Drop

“The stock market is at an all-time, but economic activity is not at an all-time,” explains billionaire investor Sam Zell to CNBC this morning, adding that, “every company that’s missed has missed on the revenue side, which is a reflection that there’s a demand issue; and when you got a demand issue it’s hard to imagine the stock market at an all-time high.” Zell said he is being very cautious adding to stocks and cutting some positions because “I don’t remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people’s thinking.” Zell also discussed his view on Obama’s Fed encouraging disparity and on tax inversions, but concludes, rather ominously, “this is the first time I ever remember where having cash isn’t such a terrible thing.” Zell’s calls should not be shocking following George Soros. Stan Druckenmiller, and Carl Icahn’s warnings that there is trouble ahead.
Billionaire 1: Sam Zell
On Stocks and reality…

This post was published at Zero Hedge on 09/03/2014.

State Treasurers Panic as Big Bank Liquidity Rules Set for Release Today

The continuing perversions and disfigurement of an entire nation’s financial system to accommodate insanely complex mega banks – the same ones who brought the country to the brink of financial collapse six years ago – takes center stage in Washington, D. C. again today.
Because Federal regulators do not want to have egg on their face if one of these global behemoths has to be rescued by taxpayers again, the Federal Reserve Board of Governors, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency are set to release new liquidity rules today. The rules will redefine the types of liquid assets these giant Wall Street banks must hold to meet the new Basel III Liquidity Coverage Rule set by the international banking body known as the Basel Committee on Banking Supervision, a group made up predominantly of global central banks.
The Federal regulators are expected to adopt rules that put a heavy reliance on banks holding short-term U. S. Treasury securities, one of the most liquid security classes around the world, in order to meet a bank run or credit crunch lasting 30 days.
The state treasurers’ panic over the rule is justified. According to press reports, the Federal regulators may exclude municipal bonds issued by states, counties, cities and school districts from the category ‘high quality liquid assets’ (HQLA) which could be easily liquidated should a mega bank experience a run on its assets. These municipal bonds fund critical projects like roads, schools, and bridges. Given the deteriorating infrastructure of the nation, these new rules may critically impact the economic interests of the U. S. while regulators show growing fealty to the wishes of foreign central banks.

This post was published at Wall Street On Parade By Pam Martens and Russ Marte.

WHY BURGER KING’S EXPATRIATION IS THE MORAL THING TO DO

It was announced last week that Burger King had bought a famous Canadian restaurant franchise known as Tim Horton’s to reduce the amount of taxes they “owe” to the US government. An upcry arose!
As usual the mainstream media and the people who watch it have the story totally wrong. Burger King is not giving US taxpayers a “raw deal” by looking to move abroad so as to save on profits which are not repatriated. Instead, the iconic fast food burger chain is doing the moral thing by moving its tax-base outside the war-mongering, highly socialist US federal government’s reach.
The mainstream media will never give you this side of the story. This obvious trend towards expatriation terrifies the talking heads. You have to come to alternative media sources like The Dollar Vigilante (TDV) Blog and others to get the truth. As Howard Kurtz writes at Fox News,
I feel confident in saying that most Americans are disgusted by the perfectly legal practice of US companies avoiding taxes by incorporating in another country.
If this is the case, it is because Americans love bombing other countries. They lust for blood. I can think of no other logical explanation Americans would want the machine in Washington to continue being fed. Burger King is not the first company to make the moral decision to leave the US tax farm. Many American companies are going abroad – as many as 70. These so-called “inversions”. Even the most American of investors stand behind the inversion. Iconic American billionaire, Warren Buffet, coughed up $3 billion so the hamburger chain could buy the Canadian donut outfit Tim Hortons. Buffett did this just one month after Obama denounced ‘inversion’ tactics as an ‘unpatriotic tax loophole’, ordering regulatory changes to undermine them.

This post was published at Dollar Vigilante on September 2, 2014.

Gold: The Thin End Of The Wedge

Gold had a horrendous year in 2013 disappointing many of its supporters; however, 2014 started brightly bringing with it much hope for an attempt at achieving new record highs. Gold prices moved quickly from the $1200/oz level to flirt with $1400/oz by mid-March. The summer brought some confusion with gold rallying and falling without much in the way of conviction in either direction. As optimists we can argue that the summer doldrums arrived to take the steam out of the market and that better times lie ahead. The pessimists suggest that gold is struggling to gain some traction and will head lower in the near future, so we will take a brief look at some of the factors that affect gold’s movements.
Factors for consideration regarding the purchase gold:
Back in June 2006 we listed some the reasons for buying gold as follows:
No new large discoveries of gold deposits dampening supply Lack of previous investment for gold exploration It takes up to 10 years to bring a new mine to production Falling gold production worldwide adding to its scarcity Gold EFTs take gold off the market thus reducing supply In the last Bull Run 70s to 80s gold prices increased 20 fold Metrics: DJIA vs. Gold, about 19ozs buys the Dow Jones, it has been 1:1 in the past and could be again in the future. Assuming the Dow Jones remains above 10,000 then the gold price could hit $10,000 Gold at its previous high of $850 adjusted for inflation puts the gold price at $2000 plus Geopolitical uncertainty, a nuclear Iran creates world tension which pushes up the price of gold A Dictatorial South America imposing restrictions such as increased taxation and nationalization will deter investment and reduce gold production India is growing and the sleeping dragon of China has awoken, their hunger for gold will drive gold prices higher Internet: information travels around the world in a nano-second, reactions to news, true or false, will add to the volatility of the gold price Web trading: increasing every day, resulting in the trends being more exaggerated than ever before The mania that I traded in during the last Bull market will be nothing compared to the coming Gold price explosion and the maniacal actions of traders and everyday people in the precious metals sector.

This post was published at Gold-Eagle on September 2, 2014.

Gold hungry Indians boost imports in UAE

Among the most popular imports into the UAE in the first three months of the year, were gold and diamonds. The country’s consumers bought about 20,000 kilograms of the material, valued at around Dhirham 37.9 billion. Most of the buyers were Indian staying in the UAE, or those visiting the country.
The UAE’s non oil trade reached Dh 256 billion in the first quarter of 2014, reflecting the continuous momentum of the country’s non oil foreign trade, driven by stronger performance in all the economic sectors, preliminary data of the Federal Customs Authority (FCA) showed.
A World Gold Council report has also alluded to this. Total gold demand in the United Arab Emirates (UAE) reached 25.4 tonnes in the first quarter of 2014. The 16% increase from Q1 in 2013, was largely driven by Indian tourists choosing to buy gold in the UAE, rather than their homeland in an attempt to bypass the Indian gold import tax.

This post was published at Mineweb

WILL THIS BE THE LAST LABOR DAY WORKERS CAN AFFORD TO ESCAPE THE US?

Ah, “Labor Day.” A government created day on which those people who work (read: producers) are supposedly celebrated by the people who don’t (government and welfare recipients). Pat yourselves on the back, entrepreneurs – the parasites love you. As I’ve written here in The Dollar Vigilante (TDV) Blog, approximately 65 million US citizens work. The rest receive welfare in various forms.

So, as you see, for about 252 million Americans, life is pretty good. The government taxes those who create vast sums of wealth, half of which is then stolen (“for the greater good”) and re-allocated to people who can’t work or won’t. A small percentage of this is allocated towards some useful things, sure, but most is squandered by the growing bureau-rat class.
So, it’s safe to say that about 252 million individuals are not interested in leaving the US. Expatriation!? They probably don’t even know what that means. They’d be absolutely insane to want to do so…. They have it pretty good. They’re born, they immediately get separated from their family and educated (read: brainwashed) in government year-round camps, torn from precious REM sleep and fed lackluster school lunches only to fail by world standards. And then, after lots of brainwashing (some of which costs hundreds of thousands of dollars), there is a job awaiting them in an exploding public sector – a militarized public sector at that.

This post was published at Dollar Vigilante on September 1st, 2014.

BIG, FAT TOLD-YA-SO: CENTRAL BANKS TRADING & MANIPULATING ALL MARKETS

The S&P, the Dow, US Treasury Bonds, CURRENCIES (WHAT THE $%^&!), Petroleum, Metals, Agricultural Products, everything. The Chicago Mercantile Exchange and CFTC have openly confirmed that CENTRAL BANKS are in the markets by posting the REDUCED FEE STRUCTURE for CENTRAL BANKS that trade the futures and options markets. That link goes to the CFTC. The Commodity. Futures. Trading. Commission. As in the Federal Government of the Iniquitous Gutter Kleptarchy, your tax dollars at work, ‘Merica. The CME has a special incentive program for Central Banks to trade. Isn’t that nice of Terry Duffy and the boys to give the Central Banks a break on fees? Aw.
Here is the write up at ZeroHedge, sourced from, yet again, Nanex.
There is no acid-trip rabbit hole deep enough to match the depths of insanity that have now been plumbed.
Are we fuzzy on what a ‘Central Bank’ is? Well, let’s go the definition just so everyone is crystal, crystal clear on this:
Central Bank: an institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the amount of money in the nation, and usually also prints the national currency, which usually serves as the nation’s legal tender.
Um, yeah.
Sooooo do you think that it is a tiny bit problematic for entities that PRINT MONEY to trade equity, currency and commodity markets?

This post was published at Barnhardt on August 30, 2014.

Pushback as US Expands Surveillance, Taxing Authority?

Several Swiss banks pull out of US tax programme … At least 10 Swiss banks have withdrawn from a U. S. programme aimed at settling a tax dispute between them and the United States, Swiss newspaper NZZ am Sonntag said on Sunday, quoting unnamed sources. Around 100 Swiss banks came forward at the end of last year to work with U. S. authorities in a programme brokered by the Swiss government to help the banks make amends for aiding tax evasion. “At least 10 banks that had decided at the end of 2013 to pay a fine have withdrawn their decision,” NZZ am Sonntag said, quoting unnamed lawyers and auditors. It did not name the banks concerned. – Reuters
Dominant Social Theme: Even though the US is seeking to spread its authority around the world, its functionaries are prepared to be reasonable.
Free-Market Analysis: This article can be seen two ways. One, the US tax regime that it is trying to install in Switzerland is being resisted, at least a little.
On two, the news can be seen as a message that once its tax regime is in place, US officials are prepared to be flexible, at least on the margins.
Got a gripe? Work within the system and you may find it’s resolved “fairly.”

This post was published at The Daily Bell on September 01, 2014.

Labor Day 2014: Economic solutions already here for full employment, zero public deficits and debts

Labor Day is an Orwellian holiday: US ‘leaders’ psychopathically pretend to care about American labor while lying about a real unemployment rate of close to 25% (the so-called ‘official’ rate excludes under-employed and discouraged workers).
Along with unemployment, Americans receive policy enabling oligarchs to ‘legally’ hide $20 to $30 trillion in offshore tax havens in a rigged-casino economy designed for ‘peak inequality.’ For comparison, $1 to $3 trillion ends global poverty forever, saving a million children’s lives every month from slow and gruesome death (here, here). And, as always, US ‘leaders’ lie-begat Americans intounlawful Wars of Aggression (in comparison, 11 days of US war cost would pay for all tuition of US college students).
Americans could have full-employment and zero public deficits and debt with monetary and credit reform.
These solutions are obvious upon a few moments of your attention. See for yourself:
What is monetary and credit reform?
Since the 1913 legislation of the Federal Reserve, the US has had a national ‘debt system;’ the Orwellian opposite of a monetary system. What we use for money is created as a debt, with the consequence of unpayable and increasing aggregate debt. This is a description of the simple mechanics of adding negative numbers. Although it’s taught in every macroeconomics course in structure, the consequences of increasing and unpayable debt are omitted (unpayable because it destroys what is used for money, and eventually the debt becomes tragic-comic in amount).

This post was published at Washingtons Blog on August 30, 2014.

Keiser Report: Fast Food Tax Evasion (E647)

The following video was published by RT on Aug 30, 2014
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss Burger King, yet another company fleeing America for yet another ‘free’ healthcare nation, Canada. Meanwhile, back in America naked incidents are on the rise and, in Europe, suicide tourism rises four-fold. In the second half, Max interviews Trace Mayer about bitcoin, central banking and geopolitics.