The Dow Jones Industrials has rallied in the face of incredible skepticism with a litany of reasons why it shouldn’t be happening, that are of course all domestic oriented. This is fantastic for it shows the market is NOT historically at a high. Bubbles come when the vast majority claim the rally will never end. What is […]

The Roosevelt Administration’s Proposal For Voluntary Annuities   The Administration’s Proposals-   When President Roosevelt submitted his legislative package to Congress on January 17, 1935, the Administration’s proposals contained three provisions designed to provide retirement security for older Americans:   1. A System of Old Age Pensions- These were state-run welfare programs for the elderly. […]

Some question about Sovereign Defaults and how often they occur seem to assume the the Age of New Economics ushered in by Keynes eliminated that possibility and besides, it only took place once in 1931. Even within the United States, the federal government promised to honor the debt of the Continental Congress. They did not. […]

Did Italy fail to see reality from the bondholder’s perspective, or the real reality from the long-term viability perspective? The latest article from the Economist says Italy is jeopardizing Europe and the Euro. Perhaps it is about time since the politicians spend without remorse and then the people are expected to sacrifice their entire future […]

Shakespeare’s Polonius offered this classic advice to his son: “neither a borrower nor a lender be.” Ben Franklin commented on the subject of debt saying: “Rather go to bed supperless than rise in debt.” The politics of debt has always ruined the state. The celebrated British economist John Maynard Keynes said it like this: “If I […]

First: Hamilton’s comment demonstrates that EVEN the Federalists were more respectful of the limitations on government than what we have today. Of course, Jefferson’s arguments would be the best. That is not the point. The point is even the worst at the birth of the USA was far better than what we have today. Secondly, […]

U.S. Supreme Court IN RE SINKING FUND CASES, 99 U.S. 700 (1878) 99 U.S. 700 (L.Ed.) SINKING-FUND CASES. UNION PACIFIC RAILROAD COMPANY v. UNITED STATES. CENTRAL PACIFIC RAILROAD COMPANY v. GALLATIN. October Term, 1878 APPEAL from the Court of Claims. Appeal from the Circuit Court of the United States for the District of California. The […]

Those who are new readers are probably unfamiliar with what I have called the Golden Rule of Reactions.  When it comes to TIMING, it is vital to understand the basic tenets of cyclical analysis. That fundamental principle is where do we draw the line between a change in trend and a mere reaction. That line […]

Perhaps the two crazy theories to top the list are: (1) Canadian Tax Protesters are claiming that there is a legal person who has to file an income tax return, and then there is the natural person who the income belongs to therefore that person is not subject to income tax. The Canadian Tax authorities have […]

Diego Maradona, the Argentine soccer star who played for Italy between 1984 and 1991, is charged with owing Italy more than 32 million euros in tax. Upon visiting Italy, on one occasion they confiscated a diamond earring and auctioned it off. Then again they took his watches and sold them upon visiting Italy. http://www.bbc.co.uk/news/world-europe-21586345 The […]