Archive for the ‘Biblical Economics & Money’ Category

Tipping Point Discussion

Tuesday, March 30th, 2010

We have mentioned the precarious position the U.S. is in: high unemployment, artificially low interest rates, heavy use of stimulus dollars, and over-leveraged consumers.  Everyone in the investment community is expecting a “tipping point” to occur in the U.S. bringing forth the next financial crisis.  The only question is “when”?  ...

Growth requires Energy

Monday, March 29th, 2010

A fundamental law of life is that growth uses energy.  This is true of an individual as well as a nation.  If you take away the energy supply of a person, they will cease to grow and begin to use any stored energy (fat) to sustain life until all the ...

Made in ????

Wednesday, March 24th, 2010

The following says it all: John Smith started the day early having set his alarm clock (MADE IN JAPAN ) for 6 am. ...

Credit Rating: Portugal versus United States

Wednesday, March 24th, 2010

A ratings agency lowered its rating on Portugal by one notch to AA-.  In 2009, Portugal had a deficit representing 9.3 percent of its national income.  How does the U.S. compare?  The following charts would indicate that the U.S. is in worst shape than Portugal:   ...

Allegations of Fraud in Italy

Thursday, March 18th, 2010

If Milan is successful, this could be the beginning of the domino effect:  

Expect More Mortgage Defaults

Thursday, March 18th, 2010

You are a 62 year old baby boomer and buy a home in 2006 for $385,000 and today it is worth $200,000.  Your payments are now $2,333 per month (principal & interest) and probably $500 per month in taxes and insurance or a $2,833 house payment.  The following table shows ...

The Great War of 2012 (A Micro-Novel)

Wednesday, March 17th, 2010

In looking back to the spring of 2010, politicians promised us that blue skies were ahead.  Little did we realized “blue” meant doom and gloom.  The economy improved in the 2nd quarter of ‘10 but the increase gasoline prices proved to be a bigger drag on consumers than economists had ...

Inflation versus Deflation- The Battle continues

Saturday, March 13th, 2010

Debt deflation is occurring in the residential and commercial real estate sector.  For most, the house is their largest asset AND their largest liability.  In the U.S., the residential market is dismal.  In our neighborhood, houses typically sell in weeks but there are a couple of listings in immaculate shape ...

The Collapse of Complexity

Thursday, March 4th, 2010

“Complex societies in the ancient world could collapse when the marginal costs of complexity got to the point where the returns on that complexity had vanished: basically, the cost of civilization got too high.” J. Tainter Having been in the finance and technology arena for 37 years, I am ...

The Function of Gold

Sunday, February 28th, 2010

Sometimes, it is best to get back to some foundational understanding about the current monetary system and where it went astray.  Man’s carnal desire to manipulate and control moved us off the gold standard.  The term “good as gold” was used for U.S. currency since you could exchange paper money ...