Monthly Archives: February 2009

The First Electronic Bank Run

U.S. Representative Paul Kanjorski, (Dem. Penn.) was recently interviewed on Washington Journal (see, ). An irate woman called in to the program and complained bitterly that her utility costs were too high; she couldn’t afford to feed her family; and that she didn’t even make $10 an hour, but she made too much to qualify for food stamps. She seemed infuriated at the Congress for failing to protect the American people from the current economic crisis.

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Posted by on February 15, 2009 in Economy, Emergency, Gold & Silver Coin, Money


Moral Bankruptcy Causes Economic Collapse

When a nation’s monetary system is based on mere promises to pay (paper and digital debt instruments) rather than payments (actual production; gold and silver coin), irrational consequences and a virtual “insanity” inevitably follow.

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Posted by on February 10, 2009 in Economy, Gold & Silver Coin, Lies, Money, What Can't be Paid


What’s the Value of a Promise that Can’t be Kept?

The February 1st New York Times published an article entitled “Big Risks for U.S. in Trying to Value Bad Bank Assets”. This article helps illustrate the insanity that inevitably follows when a nation embraces the lies of a fiat monetary system based on debt instruments (promises to pay) rather than the hard truth of specie (gold and silver coin; actual payments). In essence, the NYTimes article shows the impossible task currently facing gov-co: Devise a way to continue to delude the American people, the world, and even gov-co itself into believing that our fiat money system is based on truth (or even reason) rather than lies.

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Posted by on February 10, 2009 in Economy, Lies, Money


Warrant of Attorney

Everyone’s heard the term “power of attorney”. Some have heard the term “letter of attorney”. But until last week, I’d never heard of the term “warrant of attorney”. “Warrant of attorney” appears in only 26 Supreme Court cases ranging from A.D. 1824 to A.D. 1952. Oddly, the term hasn’t been used by the Supreme Court of the United States for over a half century. That omission, plus the timing, leads me to suspect that a “warrant of attorney” may only apply within the common law and/or within The States of the Union.

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Riding the Hyperinflationary Tiger

Zimbabwe will introduce a Z$100-trillion note, in its latest attempt to keep pace with hyperinflation that has left its once-vibrant economy in tatters. The new $100 000 000 000 000 bill would have been worth about US$300 last Thursday, but the value of the local currency erodes dramatically every day. Just last week, the bank had introduced billion-dollar bills with the same goal, but those notes are no longer large enough to keep up with hyperinflation. The last official estimate put inflation at 231 million percent in July, but outside experts now believe it is many times higher.

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Posted by on February 1, 2009 in Economy, Gold & Silver Coin, Money


Who’s Gonna Pay?

The January 29th Financial Times reports:

“DAVOS, Switzerland — Even as Congress looks for ways to expand President Obama’s $819 billion stimulus package, the rest of the world is wondering how Washington will pay for it all.

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Posted by on February 1, 2009 in Economy, Money


Who’s Runnin’ this Economy?

According to the January 29th Financial Times:

“Air freight accounts for 35 per cent of the value of goods traded internationally and the International Air Transport Association said traffic volumes had fallen by 22.6 per cent year-on-year in December. The airline industry reported an “unprecedented and shocking” plunge in global air cargo traffic.”

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Posted by on February 1, 2009 in Economy