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China: Every Boom Busts

Posted May 3, 2011

Since the beginning of the Industrial Revolution, every economic boom has been followed by an economic bust. The bigger the boom, the bigger the bust. Over the past 20 years,

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Birth Of The Debt Culture

Posted April 26, 2011

Once US dollars ceased to be convertible into gold at the beginning of the 1970s, there was no longer any constraint on the amount of dollar-denominated debt that could be

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A New Economic Paradigm

Posted April 19, 2011

Since the 1980s, a culture of debt has arisen in the United States. That change was the consequence of a misguided trade policy that gave rise to a current account

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The Loose Cannon Credit Crisis

Posted April 9, 2011

Starting in the 1970s, international credit flows began to destabilize the global economy. One country after another was plunged into crisis as dollar-denominated credit from abroad produced short-term booms followed

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ABANDONED PRINCIPLES

Posted April 4, 2011

There should be no confusion as to the origins of the global economic crisis that began in 2008. This crisis was set in motion in the 1960s, when policymakers in

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BERNANKE’S CHOICE

Posted March 21, 2011

For twelve years the US trade deficit financed the US budget deficit and held down US interest rates. From 1996 to 2008, the US trade deficit exceeded the government’s budget

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Why Won't Bernanke Come Clean on Glut?

Posted March 9, 2011

Perhaps the greatest mystery in the world of finance and economics is why Fed Chairman Ben Bernanke refuses to acknowledge that paper money creation by central banks produced the “global

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The Great Depression and The New Depression

Posted February 21, 2011

A worldwide economic depression began in 2008. This New Depression was caused by the same factors as the Great Depression and followed exactly the same pattern. Thus far, however, the

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Currency Manipulators Created $7 Trillion, Ca…

Posted February 12, 2011

The single most important development affecting the global economy over the past decade has been the creation of $7 trillion worth of paper money by central banks in developing countries.

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Debt-Financed Trade Caused The New Depression…

Posted February 5, 2011

The United States trade deficit hit $2 million A MINUTE in 2006. That was the rate ($800 billion that year) at which the US was going into debt to the

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