Potato Sack Economics

By MN Gordon – Re-Blogged From David Stockman’s Contra Corner

Fiscal policy, as opposed to monetary policy, is more readily understood by the general populace. Income taxes, budget deficits, the national debt.  These are all tangible things the average working stiff can grasp a hold of, if they care to.

The consequences of ZIRP or QE, however, are less obvious to the casual observer.  They experience the wild booms and busts of central bank caused price distortions yet never connect the dots back to the Fed.  They may falsely condemn capitalism, and never scratch below the surface where the Fed’s money and credit games are lurking.

The industrious wage earner may also find that, despite working harder and harder, their lot in life never improves.  In fact, it may even regress.  Still, many won’t recognize heavy handed monetary policy as factors for their disappointment.

The recent college graduate, making a subsistence wage at a franchise coffee shop, buried under $50,000 in student loan debt, may be keenly aware that something is radically wrong.  How come the cost of school is at such disparity with the value it provides, they may ask?

Continue reading

See No Evil: What We Chose to Ignore in the April Jobs Report

By Peter Schiff – Re-Blogged From http://www.europac.com

We live in an age where bad economic news is not only unwelcome, but it is routinely overlooked or excused. On the other hand, good news is spotted and trumpeted even when it doesn’t exist. An ideal illustration of this dangerous tendency towards collective selectivity came last week when the markets and the media somehow turned an awful employment report into an ideal data set that confirmed all optimism and contained nothing but good news for investors. In truth, it was anything but.

Continue reading