The New York and Washington DC financial geniuses continue in their wayward path. Their specialty is weird finance and they desperately cling to implementing even more bizarre strategies. This would make a great comedy series if it wasn’t so tragic. Read the full story

You may have noticed that most of my articles are pretty in depth and lengthy. A fellow IDE editor recently pointed that out and issued a challenge … “I bet you ten bucks you can’t write a one page essay.” While no names will be mentioned I will soon document receipt of a $10 Federal Reserve Note (while it still holds value). Read the full story

The Fed pulled out its “nuclear” option last week when it announced coming purchases of $300 billion in long term Treasuries (and other similar extravaganzas). This is an act of total desperation. It will also serve as a key historic moment in US and global monetary economics. Let’s look closely at what it will mean to you.

Why exactly did the Fed resort to such a stunt? The stated reason is to bring down long- term interest rates in typical central planning fashion. A re-inflation of another credit bubbleis also in their pipe dreams. We all like low interest rates when we borrow,but our capacity to borrow is long gone. Unfortunately, low interest rates punish savers who should be the backbone of a healthy economy. Read the full story

The U.S. government is going to have to print up trillions of dollars worth of new money in an attempt to break out of this economic crisis. This excess supply of currency in circulation is going to lead to demand-pull inflation. Demand-pull inflation is described as too much money chasing too few goods.

The U.S. government is heavily in debt to the tune of over $11 trillion. How will we pay this back? We will certainly not default on our debt anytime soon. It’s possible that the government could simply inflate its way out of this mess, so essentially the biggest debt ever amassed could be paid back with almost worthless dollars. Read the full story