Dishonest Scales

by Larry L. Beane II

"Dishonest scales are an abomination to the LORD, But a just weight is His delight." (Prov. 11:1)

A crooked merchant can use dishonest scales as a way to steal from the customer. If the sign
says that a pound of Cajun pastrami sells for $9.99 per pound, you expect to get 16 avoirdupois ounces for ten bucks. But what if the merchant is clever and rigs the scale to read a full pound at only 15.5 ounces? That's not a lot to shave off, but like the urban legend of the computer programmer that rolls additional fractions of cents into his own bank account, when multiplied over thousands of transactions, that's a lot of money stolen. And what's to stop the merchant from lulling people into slowly changing the scales a little at a time, year after year, so that, say in 50 years, your "pound" of meat is really only 8 ounces? If it's done slowly enough, you won't even notice.

It seems that such schemes were around in the days of King Solomon, as Proverbs 11:1 demonstrates. In fact, there are at least two other mentions of "dishonest scales" in the Book of Proverbs.

READ THE REST

Gold is Precious

January 26, 2008

The Anti-Gold Gospel According to Kaletsky
by Antal E. Fekete

Antal E. Fekete
Gold Standard University
e-mail: aefekete@hotmail.com

Anatole Kaletsky is the author of the most recent Anti-Gold Gospel (www.gavekal.com, January 21, 2008.) He is an establishment journalist, Associate Editor (formerly Economics Editor) of The Times. He says that he instinctively dislikes gold because "historically gold has been a terrible investment and, even in the short term, gold has failed as a store of value". I am satisfied to leave this statement to stand on its own, and wish Kaletsky good luck in seeking a better store of value in fiat currencies.

It is patently disingenuous and unfair to compare the gold price to stock indexes. It would be fairer to compare stashed-away gold to passbook savings. A portfolio of equities takes managing. It may be beyond the reach of most wage-earners and pensioners while their savings is the main target of the pilferers who run the nation's banks and monetary system. Who said pilferers were after wealth invested in the stock market?

I strongly object to the idea that "gold is an investment". Gold is better described as a non-investment, more precisely a place where you park your savings when you cannot find satisfactory investment outlets either because interest rates are too low, or because the risk of holding equities is too high, e.g., after a bull run of the stock market driven by printing-press money. Gold is not an investment any more than a fire-insurance policy is. Governments have a sacred duty to protect the value of funds of the weak, who cannot fend for themselves in the investment arena. Without protection their funds would melt away like butter left in the blazing sun. Governments have failed miserably in discharging this sacred duty. The Biblical curse is upon them for "tormenting widows and orphans". READ THE REST

Peter Schiff Named Economic Advisor to the Ron Paul 2008 Presidential Campaign

January 25, 2008 4:44 pm EST

ARLINGTON, VIRGINIA – Newly appointed Ron Paul economic advisor, Peter Schiff, issued the following statement about Dr. Paul’s proposed comprehensive economic revitalization plan:

“We need a plan that stimulates savings and production not more of the reckless borrowing and consumption that got us into this mess in the first place. Ron Paul’s plan is the only one that amounts to a step in the right direction. If you want meaningful change - for the better that is - Ron Paul is the only candidate capable of delivering it. The others merely promise to continue the failed policies that are at the root of our current economic problems.”

Peter Schiff is president of Euro Pacific Capital Inc, and a frequent guest on CNBC, Fox News, and Bloomberg Television. He is often quoted in major financial publications and is the author of the book Crash Proof.

In the past Peter Schiff said the following of Dr. Paul: “Ron Paul is the real deal, a true statesmen and citizen politician in the traditions envisioned by the framers of our Republic.”

Mr. Schiff is available for interviews regarding Congressman Paul’s economic policies.

Congressman Paul’s comprehensive economic revitalization plan can be found online at: www.RonPaul2008.com/Prosperity

Ron Paul Unveils a REAL Economic Stimulus Plan

Four-pronged approach will strengthen the economy by reforming taxes, cutting spending, improving monetary policy and eliminating burdensome regulations.

FOR IMMEDIATE RELEASE

January 24, 2008

ARLINGTON, VIRGINIA –Republican presidential candidate Ron Paul has unveiled a comprehensive economic revitalization package. The four-pronged plan is designed to stem the current economic slide and address the unsound governmental policies that are harming Americans’ pocketbooks.

“Real economic reform must address the underlying reasons for the current economic malaise,” said Ron Paul. “This plan is more than just a band-aid for our economy; it fundamentally reforms four areas where government policies are damaging our national economy. When enacted, my plan will provide both short-term stimulus, and lay the groundwork for long-term prosperity.”

The comprehensive economic revitalization plan is available online at: http://www.RonPaul2008.com/Prosperity.

Gold price soars on South African power cuts

Gold and platinum prices hit record highs after South Africa’s main precious metals mines were forced to close on Friday for lack of power as the government said the country faced a “national electricity emergency.”

The halt in operations came as South Africa’s government had to take the drastic step of rationing power after the embattled state electricity company Eskom said it could provide only about 50 per cent of normal needs.

Mining executives warned of a potentially devastating impact on the industry, a mainstay of the economy, as Eskom said the mines might have to stay closed for up to six weeks.

The prospect of a long stoppage pushed spot bullion in London to a record of $923.4 a troy ounce while platinum jumped to a record high above $1,697 an ounce. South Africa is the world’s largest platinum producer, with a global market share of nearly 80 per cent, and the second largest gold producer.

Rhodium also jumped to a record high above $7,000 an ounce – South Africa accounts for more than 70 per cent of the world’s supply. READ THE REST

At the Edge of the Abyss

by Gary North

This week has been filled with surprises. It began with bad news for international stock markets. It got rolling with unprecedented news from the Federal Reserve System. It got wild with nutty news from a bureaucrat in New York. Then it settled down to wild swings on the American stock market.

All in all, this week was a sign that the economy is headed toward the falls. Keep close watch on the canoe 100 yards ahead of you. If, without warning, it disappears, start paddling for the shore. Either shore. Fast.

On Monday, Americans were home, celebrating the birth of Martin Luther King. Well, maybe not celebrating. But home.

The American stock markets were closed. That left foreign markets to set the pace. They fell. They looked like they were in free-fall. Then, the next day – day two for them – they fell again, only worse. FULL ARTICLE

Ron Paul stumps John McCain !

And is this the Devil whispering in Mitt Romney's ear???

Road to Hyperinflation is paved with Market Accommodating Monetary Policy

By Henry C.K. Liu,

Part I: A Crisis the Fed Helped to Create but Helpless to Cure

After months of denial to sooth a nervous market, the Federal Reserve, the US central bank, finally started to take increasingly desperate steps in a series of frantic attempts to try to inject more liquidity into distressed financial institutions to revive and stabilize credit markets that have been roiled by turmoil since August 2007 and to prevent the home mortgage credit crisis from infesting the whole economy.

Yet more liquidity appears to be a counterproductive response to a credit crisis that has been caused by years of excess liquidity. A liquidity crisis is merely a symptom of the current financial malaise. The real disease is mounting insolvency resulting from excessive debt for which adding liquidity can only postpone the day of reckoning towards a bigger problem but cannot cure.

Further, the market is stalled by a liquidity crunch, but the economy is plagued with excess liquidity. What the Fed appears to be doing is to try to save the market at the expense of the economy by adding more liquidity.The Federal Reserve has at its disposal three tools of monetary policy: open market operations to keep fed funds rate on target, the discount rate and bank reserve requirements.

The Board of Governors of the Federal Reserve System is responsible for setting the discount rate at which banks can borrow directly from the Fed and for setting bank reserve requirements. The Federal Open Market Committee (FOMC) is responsible for setting the fed funds rate target and for conducting open market operations to keep it within target. Interest rates affects the cost of money and the bank reserve requirements affect the size of the money supply. FULL ARTICLE

Tax Rebates: Old Wine in Old Skins

Mises.org Updates

Some 70 percent of economic growth over the past years was a result of consumption. Now that consumption is slowing down -- with lower retail expenditure during the Christmas season and dropping charges to credit cards -- a tax rebate will again fan consumption.

It will not do a thing to increase savings, from which future investments can be made, writes Wolfgag Grassl. We all know by now that the way out of a recession is through the building of capital goods, not through the temporary fattening up of American retailers and Chinese manufacturers.

Second, government can finance its largesse only by either raising taxes -- if for political reasons not now, then in future years -- or by borrowing even more. Already today, total public debt amounts to over $9 trillion, or two thirds of annual GDP. About 44 percent of it is owed to foreign entities. It will have to be paid back -- whether through years of lower consumption, or domestic inflation, or a reduction in the external value of the dollar. FULL ARTICLE