The great Austrian economist Ludwig von Mises noted that the income tax rests on a false premise, namely, that money can be taken from people without harming production.
The Fed faces a no-win scenario. Cutting rates would stimulate the economy, but reignite inflation. Holding rates could tame inflation, but risks crushing a debt-saturated system.
As the bank may discover eventually, if it doesn't already know, those "global standards" for gold are not really very high in regard to ethics and transparency.
After a one-off surge in April, consumer borrowing tanked again in May, a sign that Americans might be close to tapping out as they hit their credit card limits.
A recent report by Metals Focus argues that while there are still plenty of short-term headwinds, the gold price remains well-supported, with a strong potential for further upside.
With a massive revaluation of gold the government would achieve practically infinite money without issuance of debt and the awkwardness and embarrassment of monetizing bonds -- raw and direct inflation and currency devaluation.
This combination of growing government debt and diminished risk-taking isn’t good at all. At lower levels, it was reasonable to think we could grow our way out of the debt. That hope is gone.
