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February 2013

When Push Comes to Shove, Central Banks Print

Inflation is always and everywhere a monetary phenomenon– Milton Friedman With worldwide demand for oil ebbing [.5% growth in ’11 and .3% since ’08 (compound annual growth rate – CAGR)], and with huge new discoveries, it would be logical that the price of related commodities would be falling. The price of gasoline, for example, is currently 2.3 times its $1.61/gallon low of four years ago. The price of gold, while …Read More

‘Margin Tax’ a potential disaster for Nevada

On Jan. 31, the Nevada Supreme Court reversed a lower court decision and reinstated the “margins tax” petition sponsored by the state’s teachers’ union. As a result, the proposed tax likely is to be on the 2014 general election ballot. The Texas experience Texas adopted a margins tax in 2006 with its effective implementation in 2008. There were five goals of the Texas experiment: fairness, broad based, modern, understandable and …Read More

Living in an age of gold rather than a Golden Age

The real size of the U.S. budget deficit On Jan. 17, to little fanfare and even less media coverage, the Treasury reported (a month late) that the Generally Accepted Accounting Principles deficit was $6.9 trillion, or 46 percent of total U.S. economic activity for 2012. The 2011 GAAP deficit was $4.6 trillion. GAAP accounting is required of all publicly traded companies in the U.S. The GAAP deficit includes the present …Read More