Senator Elizabeth Warren Proves Herself as Stupid as Advertised

This is a bit off topic, but worth discussion.  With certain federal subsides for student loans set to expire in July, Senator Warren has proposed an 'interesting' idea.  From the Huffington Post:

Warren and her co-sponsor John Tierney propose that students be allowed to borrow directly from the government at the same rate that banks get from the Federal Reserve -- 0.75 percent. They argue: 

Some people say that we can't afford low interest rates for students. But the federal government offers far lower rates on loans every single day -- they just don't do it for everyone. Right now, a bank can get a loan through the Federal Reserve discount window at a rate of less than one percent. The same big banks that destroyed millions This is not fair. And it's not necessary, either. 

The federal government makes 36 cents on every dollar it lends to students. Just last week, the Congressional Budget Office announced that the government will make $51 billion on the student loans it issued this year -- more than the annual profit of any Fortune 500 company, and about five times Google's yearly earnings. We should not be profiting from students who are drowning in debt while we are giving great deals to big banks 

..... 

Warren and Tierney assert, "For one year, the Federal Reserve would make funds available to the Department of Education to make these loans to our students." For the Fed, completely different banking rules apply. As "lender of last resort," it can expand its balance sheetby buying all the assets it likes. The Fed bought over $1 trillion in "toxic" mortgage-backed securities in QE 1, and reportedly turned a profit on them.  It could just as easily buy $1 trillion in student debt and refinance it at 0.75 percent.

In other words, instead of joining Rand Paul to make the Federal Reserve less powerful, Senator Warren's proposed solution to Fed malfeasance in the banking sector is to give that same Federal Reserve more power over student loans.

But, of course, what did you expect?!?

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How Vladimir Putin Played Idiot Texas Secessionists Like a Fiddle

These people allowed themselves to be used in a Kremlin propaganda video; how stupid could you be?!?



Highlights:

• They make some decent points about money, but this isn't the solution.
• Author's Note: THIS is.

• These people are a bunch of civil war re-enacter dipshits.

• Ignore the Fed -- That's actually not a bad idea.

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Peter Schiff DEMOLISHES Larry Kudlow

With all due respect Larry Kudlow, you probably shouldn't have gotten out of bed this morning:



Highlights:

• Ben Bernanke is not Paul Volcker and President Obama is no Ronald Reagan
• Personal Note: That's the understatement of the year!
• Everything they've done since 2008 has made the situation worse.
• This decline in Gold is a buying opportunity.

• The money printing will continue and the inflation is there; anyone who shops knows that.

• Who cares what the government says in their doctored numbers?!? 

• For the record: This David Goldman character is a moron.

• With all due respect to Larry Kudlow, none of this stuff has materialized...YET!!!

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Kevin Freeman: You can run but you can't hide (except maybe in Texas)

Cahnman's Musings has been familiar with Kevin Freeman since we read his book Secret Weapon last year.  Thus, it heartens us to hear Freeman speak approvingly of Rep. Giovanni Capriglione's effort to establish a gold bullion depository in the state of Texas. Freeman writes:

The most asked question after people grasp that we are in a global economic war is “What do I do with my money?” Now, it is a pretty astounding revelation to understand that the next global war, or more precisely the one we are in now, is not fought with tanks and planes. It is fought with money and computers. It is not a cyber war as so many have thought. It is an economic war and cyber is simply one of the many battlefields.

It wasn’t a cyber attack that doomed Cypriot depositors to lose 10%, 30%, or 80% of their deposits over 100,000 Euro (or however it ends up). No, it was bank failures and the pressures of the International Monetary Fund, the World Bank, and the European Union. These were terms “handed down.” No computer needed in this case.

Of course, there is a massive cyber battle underway. In fact, just last week may have been the largest attack in history. Here at home, JP Morgan Chase depositors logged on to their accounts recently only to see zero balances across the board. We have been told that this wasn’t hacking but rather a computer glitch. but, it could have been hacking and that is the point.

Once someone realizes that this is a global economic war they understand that their bank accounts, life savings, stock holdings, and even currency could come under attack. The immediate response is to ask how to protect your money. Unfortunately, there is no “one size fits all” answer. The reality is that no single approach can work.

....

The reality is that gold has been confiscated in the past and could be confiscated in the future.  If the IMF can raid Cyprus-held bank accounts, do you believe gold bars in your home would be immune?


It is interesting to note that the state of Texas may ask for their gold to be held in the state. A new bill sponsored by Giovanni Capriglione and supported by Governor Rick Perry may pave the way for one place to possibly hide. If successful, this bill opens some interesting possibilities as mentioned by Jim Rickards, best-selling author of Currency Wars. [Rickards has been featured extensively warning of the risks of a dollar collapse. He led a war game effort in the Pentagon that showed how Russia and China could destroy our currency.]

It makes us breathe just a little easier knowing that Kevin Freeman favors these efforts.

Update: Apparently, Kevin Freeman helped craft this plan.

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