Wednesday, April 16, 2014

Alexander Fraser Tytler, Cycle of Democracy (1770)

A democracy cannot exist as a permanent form of government. It can only exist until voters discover they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for candidates promising the most benefits from the public treasury, with the result a democracy always collapses over lousy fiscal policy,  followed by a dictatorship. The average of the world's great civilizations before they decline has been 200 years. These nations have progressed in this sequence: From bondage to spiritual faith; from faith to great courage; from courage to liberty; from liberty to abundance; from abundance to selfishness; from selfishness to complacency; from complacency to apathy; from apathy to dependency; from dependency back again to bondage.

Friday, January 31, 2014

One Year Central Banks Balance Sheets Change vs. Currency X-Rate Change: Impotent Correlation On Weak-Inverse-Relationship

Central Banks Balance Sheets- BOJ, Fed, BOE, ECB (courtesy of @AxelMerk)
Currencies denominated in US Dollars- Euro, Pound, Yen:
The weak-inverse-relationship might partially be accounted for by the US Fed paying 0.25% to Federal Reserve banks to hold Reserves, thereby keeping this portion of the Monetary Base out of M2.

BEA Preliminary January Report: Q4 2013 US GDP Weakened to 3.2%, Down From Strong Q3 of 4.1%

Q4 report breaks the three-quarter positive trend ending in Q3, off 0.9% quarter-over-quarter, weakness driven by lower Private Investment and Government Spending:

Google 3 Yr % Change- In light of Revenue & Profit Trends, Stock Price is High