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Hedgeye CEO Keith McCullough: The U.S. Collapse Will Follow Europe's, And Bernanke Will Be Fired Kamelia Angelova | May 27, 2010, 11:15 AM | 3,635 | comment 20 The domino effect of debt maturity is coming to America, says Keith McCullough, CEO of Hedgeye Risk Management. "The U.S. is on the road to perdition and it is not going to end well." "When you burn your currency, you promote inflation and you enrage your citizens," says McCullough. He says that Ben Bernanke will soon be voted out for his excess borrowing policies and failure to deliver on promises to cut...

Keynesianism Delivers a Decade of Zero Economic Growth Economics / Great Depression II Jan 05, 2010 - 12:28 AM By: Dr_Ron_Paul This past week we celebrated the end of what most people agree was a decade best forgotten. New York Times columnist and leading Keynesian economist Paul Krugman called it the Big Zero in a recent column. He wrote that "there was a whole lot of nothing going on in measures of economic progress or success" which is true. However, Krugman continues to misleadingly blame the free market and supposed lack of regulation for the economic chaos. It was encouraging...

Fiscal Insanity Virus Rapidly Spreading The Globe (Part 1) Warning: A dangerous new virus, FIV, is rapidly spreading the globe. /snip Scientists have dubbed the disease, FIV, the Fiscal Insanity Virus. FIV is more contagious and far more dangerous than the common flu virus now making its rounds. The primary symptom of FIV is irrational, often delusional fear of deflation. The virus has an uncanny ability to seek victims in positions of authority. Those afflicted with the virus start taking (or promoting) fiscally reckless actions guaranteed to damage the host country. /snip The ZIRP Symptom Those severely inflicted with FIV...

U.S. Rep. Ron Paul, who has been an opponent of the government's bailout plan, spoke Friday with CNN's Kiran Chetry on "American Morning." The Texas Republican says the bailout's infusion of government money will lead to inflation, that our current monetary system is coming to end, and the market, not politicians, can best solve the economic crisis.Kiran Chetry: The last time you were with us you explained why you were against the government's bailout plan, why you were voting against it, and you didn't believe focusing on buying these troubled assets was the smart thing to do. Since then, they've...

1. The Federal Reserve cut interest rates to as low as 1% so that after inflation we had negative interest rates.

Given last week's dramatic events — the bankruptcy of Lehman Brothers, the end of Merrill Lynch's independence, and an $85 billion US-government bailout of insurer AIG — most financial institutions are likely to become more sensitive to the state of their net worth. For instance, all it takes for a financial institution that has a net worth of $30 billion and assets of $600 billion to go under is for the value of assets to fall by 5%. In the current financial climate, it can easily happen; hence, most financial institutions are not immune from the potential threat of going...

In the dozen or so years until 2007, it had become as close to a global orthodoxy in economic policy making as we ever see: Central banks should target a low and stable rate of inflation. This replaced earlier orthodoxies -- such as that central banks should maintain a fixed exchange rate with an ounce of gold, which was abandoned in 1971. Though inflation targeting left far more latitude for government officials to expand the money supply, it too ultimately proved too great a shackle on the exercise of central bank wisdom. The U.S. Federal Reserve, the European Central Bank,...