A Simple Solution Ends The Problem Of Student Debt

By Sol Palha – Re-Blogged From http://www.Gold-Eagle.com

The real issue is that there are college students that don’t want to work…but want to go to the best colleges money can buy. Moreover, the parents are encouraging this. What happened to the day you went to the college you could afford, and you worked to pay for all of it or, at least, helped your parents.  The problem lies with the parents and the kids – i.e. the parents are encouraging this asinine behaviour.  Today’s generation believe that they are entitled to the best of the best without having to work for it.   College Graduates that are drowning in debt, but still refuse to give up on luxuries is a perfect example of this principle in action. Instead of tightening their belts, they continue to add to the debt…and then cry wolf when everything starts to fall apart.

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Losing Ground In Flyover America, Part 3

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

As we indicated in Part 2, the Fed’s crusade to pump-up inflation toward its 2.00% target by hammering-down interest rates to the so-called zero bound is economically lethal. The former destroys the purchasing power of main street wages while the latter strip mines capital from business and channels it into Wall Street financial engineering and the inflation of stock prices.

In the case of America’s 80 million working age adults (25 or over) with a high school education or less, the Fed’s double whammy has been catastrophic. As we demonstrated yesterday, the employment-to-population ratio for this group has plummeted from 60% prior to the great recession to about 54% today.

In round terms this means that the number of job holders in that pool of the less educated has shrunk from 49.4 million to 43.5 million since early 2007. That’s nearly 6 million workers gone missing or 12% of the total from just nine years ago.

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Debt To Escape Velocity

By Andy Sutton & Graham Mehl – Re-Blogged From http://www.Silver-Phoenix500.com

One of the biggest buzz-terms of the falsetto, faux recovery has been ‘escape velocity’. If there are any NASA engineers left, they can correct me, but I believe the term was used in physics or perhaps rocket science to describe the velocity an object must reach to break the hold of the Earth’s gravity. And you think Economics has some formulas? I’d LOVE to see the one for the real escape velocity.

Getting back to the economic version of rocket science (don’t even tell me that isn’t funny), we have been hearing the term for the past several years. Ironically it started with the central banking crowd, although they never quite told us what exactly the economy had to do to accelerate beyond the grasp of the ‘great recession’.

The point of this piece, however, is not to poke fun at seemingly benign policymakers and their silly words. The thrust of this article is going to be to demonstrate both visually and mathematically using some simple constructs that it is debt that has reached escape velocity and not the economy. Granted, myself and many others have written about this for years and if you’re reading this you probably have known it for that long.

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Taxes vs Subsidies

cropped-bob-shapiro.jpg   By Bob Shapiro

There’s a truism in economics that, if you want more of something you subsidize it, and if you want less of it then you tax it. A quick look at government policy here in the US shows that this is as true today as it ever was.

But, since Americans have been taught to have knee jerk reactions, let’s try just to look as dispassionately as possible, not considering whether any of the policies are “needed desperately,” “are for a good cause,” or some other worthwhile purpose. Let’s just look at what is.

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