American fiscal vices are sufficient to corrupt a world of financial virtue.
by Peter Schiff
Baltimore — (TFN): Economists who now see American troubles spreading around the world are predicting that foreign central banks will ignore the gathering inflation threat and follow the Fed down the rate cutting path. Similarly, they argue that since the downturn [...]
by John Browne
Baltimore — (TFN): As the economic indicators turn down and election year politics heats up, the calls from politicians for more government intervention and enhanced economic stimulus are becoming more strident. Last week, with the onset of the general presidential campaign, and with increased attention on the economy shown by the Bush administration, [...]
Baltimore — (TFN): Ever since Robert Rubin began the tradition in the mid-1990s, it has been a significant element of the Treasury Secretary’s job description to continuously state that a strong dollar is in the national interest. It is widely regarded that such utterances, if repeated often enough, can constitute the sum total of what [...]
by John Browne
Baltimore — (TFN): This week I watched Fed Chairman Ben Bernanke charm the rain-soaked graduating class of Harvard, my Alma Mater. As he spoke, I was reminded of an anecdote involving President Franklin D. Roosevelt during the commencement speech he gave at Harvard in 1936: Amidst a similar downpour, he said, “Well, Harvard [...]
Baltimore — (TFN): As China grapples with the consequences of its devastating earthquake, it is finally confronting the destabilizing forces bubbling up beneath its economic landscape. This week, several key Chinese officials, usually not known for their candor, conspicuously noted the need to both stimulate domestic consumer spending and bring down roaring inflation. While at [...]
by Peter Schiff
Baltimore — (TFN): For those holding out hope that the American economy can miraculously avoid a long and deep recession, consumer credit is often viewed as the wonder drug that can cure all manner of economic ills. As such, this week’s report showing $15 billion growth in consumer credit was widely heralded as [...]
by Peter Schiff
Baltimore — (TFN): With what many have described as a flash of monetary discipline worthy of Paul Volcker, Ben Bernanke reduced short-term interest rates this week to a mere 2%, apparently turning a deaf ear to those on Wall Street who wanted more. But now that the dollar-crushing side effects of cheap money [...]
by John Browne, Senior Market Strategist Euro Pacific Capital
Baltimore — (TFN): Last week, food shortage became an American reality. Costco, Wal-Mart and other food stores limited the purchase of certain food staples in bulk form. Purchases of rice in California and of oil and flour in Queens were restricted. Customers were angry, voicing strong concern [...]
“Colleges and universities would simply be forced to offer affordable tuitions or go out of business—just the way they used to back in my father’s day. Similarly, if the government allowed real estate prices to collapse, Americans would not have to take on so much debt to buy houses.”
—Peter Schiff
by Peter Schiff
Baltimore — (TFN): Those [...]
by Peter Schiff
Baltimore — (TFN): High-profile bankruptcies of mainstay American retailers, such as The Sharper Image and Linens ‘n Things, as well as the proposed mergers between Blockbuster/Circuit City and Delta/Northwest, and the admissions from the nation’s leading student lenders that their business models are no longer viable, mark the beginning of a long overdue [...]
By John Browne, Euro Pacific Capital - Senior Market Advisor
Baltimore — (TFN): Last week, General Electric — one of the finest companies in the world and an American icon — announced a major fall in earnings. Amazingly, the bad news surprised Wall Street. GE shares fell 13 percent in a single day. Some surprise!
GE is [...]
"By allowing the accumulation of even more taxpayer guaranteed debt, the moves will merely delay and exacerbate the housing problems and will increase the size of losses when these two government sponsored enterprises ultimately fail." — Peter Schiff
by Peter Schiff
Baltimore — (TFN): How do you know when you’re through the looking glass?
A fairly good indication [...]
"Backing paper money with mortgages is nothing new. The French tried it in the late 18th Century, and it lead to hyperinflation." — Peter Schiff
by Peter Schiff
Baltimore — (TFN): This week, as the financial sector began to give way under the unbearable weight of bad mortgage debt, the Federal Reserve stepped in to save the [...]
"There is little doubt that the vast amounts of cheap, U.S.-dollar liquidity pumped into both American and international economies by the U.S. Federal Reserve Board(particularly under former Fed Chairman Alan Greenspan averted some naturally occurring and corrective recessions and led to a series of unprecedented asset booms. The mistake was in thinking that this virtual [...]
by Peter Schiff
Baltimore — (TFN): Prior to my last appearance on CNBC in October 2007, I had made more than 50 appearances on the network over the prior two years. In those segments, I repeatedly exposed the superficiality of our prosperity, described the American economy as a “house of cards”, pointed out that borrowing and [...]
by Peter Schiff
Baltimore — (TFN): Unfortunately one of the few things still made in America is inflation. In fact, it now ranks as our greatest export. A significant by-product of the current global economic system, wherein Americans spend money they do not earn to buy foreign products that they do not make, [...]
By Peter Schiff
Baltimore — (TFN): In the face of US recession, economic stimulus packages have become quite the rage.
Despite the fact that the Fed still believes that a recession is unlikely to occur, Bernanke & Co. followed up on last week’s emergency 75 basis point rate cut with a 50 basis point kicker on Wednesday. [...]
Baltimore — (TFN): Is it good news or bad news? TFN's weekly Dollar Bear Peter Schiff was just appointed economic advisor to Ron Paul's grassroots campaign for the nomination as presidential candidate of the GOP.
Peter states: “We need a plan that stimulates savings and production not more of [...]
"Gold is not in a bubble market: The Fed is sending the message that inflation is going to get a whole lot worse and that it couldn’t care less. As the price of gold continues to climb as a result, look for more excuses to minimize the significance of the move." — Peter Schiff
by Peter [...]
If you missed last week's TFN financial news coverage, here a few of the highlights!
by J. Christoph Amberger Baltimore — (TFN): The first trading week of the new year began quite ominously, with a substantial drop in the American stock indexes. This meshed well with some of our most popular TFN contributions this week… [...]
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