All Posts Tagged With: "Federal Reserve"

David Stockman is Right, and We Should Probably Be Afraid

Iowa Politics Money Chess TaxesFormer Michigan Congressman and Reagan Budget Director David Stockman’s new book “The Great Deformation” provoked a flurry of insult and ridicule when it first came out back in April. I’m late to the party because as a law school graduate I spend all of my spare cash on liquor; in fact, I have not yet read the book. Fortunately for me, book tour promotional speeches are readily available on Youtube, and Stockman has no instinct for holding back.

Here is the gist; the Bretton Woods Conference made the dollar the reserve currency of the world, it was gold-based until 1971 when Nixon decided to let it float free, allowing the US to run endless trade deficits with mercantilist, export-led industrializing countries in East Asia. Along …


What I Learned as a Foreclosure Attorney

forclosed houseA sizeable chunk of my legal career has been spent neck-deep in the morass of the foreclosure wave that has wreaked havoc across the land several years ago. If you wonder what has made me cynical about both the economy and the competency of government, it was my year doing foreclosures.

First of all, I am not the big expert, and this is in no way legal advice; I worked long enough to learn how the process works and how it ties in to real estate market and the economy as a whole. I think I have put the picture together reasonably well, and I have learned a few things about our national obsession with real estate.

Banks Do Not Hold Mortgages

The fact that …


Completely Pointless and Utterly Absurd

First, some chemistry; iodine turns black when exposed to starch. So, a lighter ink which contains iodine will turn black when it comes into contact with starch, which is included in the manufacturing process of standard copy paper. When the ink is used on paper that doesn’t contain starch (such as most paper made with cotton fiber instead of wood pulp) the ink will maintain a sort of brownish-yellow color.

If you pay for gasoline with a fifty dollar bill, chances are the cashier will make a mark on it with a counterfeit detector pen. American currency, made of cotton fiber and not including starch, will leave the ink that lighter color. Counterfeit currency printed on regular paper will make the ink turn black.

Interestingly …


On National Debt, Default is Inevitable

Much attention has been focused on the size of the national debt as a whole; roughly $14.4 trillion. That number is astonishing, but the sheer size of the debt actually hides the true horror which is in store for the economy and future generations.

The debt has many component categories, the largest of which is called Marketable Debt. That means the portion of the debt that was issued in treasury securities that can be sold in the secondary bond market, and it is around $9.2 trillion. The rest is Non-marketable, and held mainly by the Social Security Administration through bonds that cannot be sold.

The Marketable Debt also has its own sub-components, based on the type of security that was sold to incur the debt …


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