Living Dangerously

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

Regular readers of Goldmoney’s Insights should be aware by now that the cycle of business activity is fuelled by monetary policy, and that the periodic booms and slumps experienced since monetary policy has been used in an attempt to manage economic outcomes are the result of monetary policy itself. The link between interest rate suppression in the early stages of the credit cycle, the creation of malinvestments and the subsequent debt dénouement was summed up in Hayek’s illustration of a triangle, which I covered in an earlier article.

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Common Sense Monics

By Keith Weiner – Re-Blogged From http://www.Gold-Eagle.com

Support you’re driving a car, and you turn the steering wheel left [s/b right. -Bob]. You will feel the door and pillar of the car push your left shoulder (in a left-drive car). This is an observed fact.

Common Sense Physics

One idea—let’s call it common sense physics—is that a force is pushing you outward into the door. If you picture the center of the circle that the car is making in its turn, there is an apparent radial force on you. The direction of this force is outward. It is called centrifugal force.

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But “We Owe It To Ourselves”

By Keith Weiner – Re-Blogged From http://www.Gold-Eagle.com

Have you ever heard someone say this? It falls into the category of, it’s so perverse, so wrong, and so wrong-headed that there has got to be a constituency out there somewhere, to assert this!

First, let’s head off at the pass the objection that the majority of US government debt is held by foreigners. As of March this year, the US Treasury estimates that $6.3 trillion worth of Treasury bills and bonds are owned by foreign holders. This is not even close to the majority of it.

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The Crisis Next Time

By Nicole Gelinas – Re-Blogged From City Journal

Ten years after a financial meltdown, America hasn’t grappled with the root problems.

Interest rates on the United States’ ten-year Treasury bond recently hit 3 percent, which should be regarded as historically low. Instead, a decade after the financial crisis began, it’s remarkable for being that high, and economic and financial experts can’t agree on whether this new rate portends a brewing economic miracle or a looming economic crisis. What it really reflects is a conundrum: the economy is doing well, but in large part because Americans have borrowed too much, too fast, and at too-low rates—and a real risk exists that normal interest rates will kill this debt-fueled boom. In the decade after the 2008 debt-based meltdown, the U.S. still hasn’t kicked its addiction to borrowing.

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What Does Credit Repair Mean?

   By Nicole Clark

What is Credit Repair? Ask 10 people to define credit repair and you will probably get 10 different answers. Even amongst financial experts, there are disagreements about what credit repair is.

So exactly what is credit repair?

People on the far end of the spectrum will tell you that credit repair is a myth. That it is snake oil peddled by con-artists trying to separate you from your money. They feel that a bad credit rating is something you have earned and will have to endure without recourse. According to them, the only way you can “repair” your credit is to wait for the negative items on your credit reports to naturally fall off.

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Banks Suffer 20 Percent Jump in Credit-Card Losses

By I McGuire – Re-Blogged From Newsmax

U.S. banks have reportedly recently suffered a 20 percent jump in credit card losses.

The soaring bad debts has fueled fear about the financial health of middle America, the Financial Times explained.

Recently disclosed results showed Citigroup, JPMorgan Chase, Bank of America and Wells Fargo took a combined $12.5 billion hit from soured card loans last year, about $2 billion more than a year ago. The FT reported.

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