SRSROCCO REPORT: U.S. Ponzi Scheme & Peak Silver
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Items from Professor Preponomics:
U.S. News
Fed “Stimulus” Has Made Inequality Worse, Hurt Economic Growth (Cato Institute) Article Quote: “…Fed policy has contributed to the rise in income inequality in this country. It has also resulted in misallocation of capital in ways that will only be fully discovered when the policy is reversed.”
High-Yield Hedge Fund Stops Redemptions (WSJ via CNBC) Quote: “Icahn, an activist investor, also renewed his repeated criticism of the high-yield market, calling it a “keg of dynamite that sooner or later will blow up.” He contended that some junk bond funds lack necessary liquidity and investors need to know more about their risks.”
The Governor of Alaska Calls for INCOME TAX (USA Today) Spoiler Alert: When there is no way to reconcile state finances short of serious cost cutting measures, the solution (in the eyes of the government) is simple: just call for more tax revenue.
Yellen Interested in Climate Change and Risk to Financial System(Washington Examiner) Presented without further comment except to say that this leaves me nearly speechless.
International News
China Has Officially Joined the Currency Wars (Contra Corner) Commentary: Devaluation of the yuan may be coming. In fact, this writer suggests, it may be unavoidable.
Personal Economics and Household Finance
The Fake IRS Phone Scam is BACK (Clark Howard) Reader Alert: Sophisticated phone scammers have scammed 1,000 people out of $5M. In some cases, they impersonate local law enforcement and threaten people who don’t pay up immediately with imminent arrest. As difficult as it is to imagine falling for this, many people do. Educate and warn your friends, family members, and co-workers.