Category: Fiat CurrencyThe analysis published under this category are as follows.
Tuesday, April 11, 2017
If there is any one thing in particular that threatens the collapse of our banking system and financial structures worldwide, it is the practice of fractional-reserve banking. The subject is rarely mentioned in the financial press. When it is mentioned, a clear explanation is usually not available.Read full article... Read full article...
Wednesday, March 08, 2017
Those who hoped President Trump would tone down his protectionist rhetoric will be unnerved six weeks into his tenure. From his meeting with business CEOs, Trump has put trade “front and center.”
So far, all is going well for the president. Markets are inching higher, and inflationary forces have picked up. However, bringing back jobs and reducing the trade deficit will be a tougher task.Read full article... Read full article...
Monday, February 27, 2017
- Cost of Best Picture winners show very significant devaluation of the dollar
- Average cost to make an Oscar winning film is over $43 million – in gold terms, this is over 106,000 ounces
- Four $15 million films show nearly 100% difference when priced in gold ounces
- Oscar fiasco was courtesy of error by accountants PWC
- Whilst the price of the films remained the same, the cost in gold ounces fell from 11.53% of the cost to make the Departed, in 2009 to just 6.4% in 2012
- In an error prone, irrational and volatile world, gold retains value over time …
Tuesday, January 24, 2017
Now that Donald Trump has been sworn in, Americans will start getting some glimpses of what his presidency actually means.
Here are some educated guesses of what to expect when it comes to the dollar and sound money issues, based on what we know before the kick-off of Trump's administration.Read full article... Read full article...
Wednesday, December 14, 2016
Post-election airwaves and publications today are filled with bad news, good news, and fake news.
The bad news is ‘fake news’ is very real. The good news is fake news is nothing new. The even better news for gold and silver stackers is they have learned to live with decades of fake news about sound money.
You already know all about fake news. It used to go by other names – lies, propaganda, false advertising, and brainwashing, to name a few. Now we can add polling results and agenda-driven predictions to that list.Read full article... Read full article...
Wednesday, November 23, 2016
Recently, the Chinese renminbi fell to its lowest level since late 2008. Currently, it trades around 6.88 to US dollar.
Read full article... Read full article...
Wednesday, October 12, 2016
We live in a world where the yield-starved and tech-savvy conspire in the basement of the underground and unaccounted. While the rise of Bitcoin and the explosion of alternative currencies may become the new scapegoat of behavioral finance, there is nothing quite like the reality of trickle down finance gone wrong.
Recently, EU officials called for putting safeguards on Internet currency.Read full article... Read full article...
Wednesday, September 28, 2016
Some say the U.S. dollar may die 5 days hence. The Chinese renminbi will kill it. Much is being made of plans by the International Monetary Fund (IMF) to add the renminbi to its basket of strategic reserve currencies called Special Drawing Rights (SDR). The IMF will make the change on October 1. While the implications for the Federal Reserve Note, currently the U.S. dollar, as the world’s primary reserve currency may be profound over time and the importance of this even should not be overlooked, the impact is unlikely to happen overnight.Read full article... Read full article...
Wednesday, September 14, 2016
“Kindly let me help you or you’ll drown, said the monkey to the fish as he placed him safely up the tree.” – Unknown
The financial system (mistaken for the economy) is so bloated with risk that any number of events could trigger an explosion that would reach much further than anyone could imagine – causing irreparable damage.
Because of the size and the massive dependence on the institutions (who have evolved like a cancer from big finance), the resulting carnage will reach out much further than the primary institutions.Read full article... Read full article...
Saturday, August 20, 2016
Since the early 19th century, economists have consistently preached that the value of money or its purchasing power should be stable or relatively stable. David Ricardo, in 1817, said: “A currency, to be perfect, should be absolutely invariable in value.”
According to this view, money as a unit of account should be equivalent to a yardstick measuring an immutable distance. Over the last century, this view of money has led economists to suggest that prices, reflecting the purchasing power of money, as measured by a price index , should also be stable and that central banks should actively interfere with the market economy to bring stability to such an index. The U.S. Central bank has essentially been following such a policy since its inception in 1913. Price stability is inscribed in the Maastricht Treaty, and the goal of hitting a 2% CPI inflation target is a variant of this widely-held view.Read full article... Read full article...
Wednesday, August 03, 2016
This year marks the 101st anniversary of Andrew Jackson rolling over and over in his grave.
Back in 1915, the brand new Federal Reserve pasted the 7th President's likeness on its first $10 debt note – a sharp slap to the President who fought and won his famously bitter battle to destroy the “corrupting monster” of central banking.Read full article... Read full article...
Monday, August 01, 2016
There are four stages of fiat money printing that have been used by central banks throughout their horrific history of usurping the market-based value of money and borrowing costs. It is a destructive path that began with going off the gold standard and historically ends in hyperinflation and economic chaos.Read full article... Read full article...
Wednesday, July 27, 2016
The insidious nature of credit expansion under the implicit guise of forced legal tender has worked it’s way (essentially) undiagnosed through many generations.
Viruses work from the inside out. They take over the control center of a cell. They use the existing machinery to proliferate.
Ultimately, the most successful become part of the host. Some become a part of the genome.Read full article... Read full article...
Monday, July 25, 2016
BY JARED DILLIAN: Shinzo Abe just scored a decisive victory in the upper house elections. Let me explain why that is not boring.
Abenomics was conceived in 2012 as a way to combat Japan’s never-ending deflation and pseudo-depression. It included a truly massive program of quantitative easing. This involved the printing of yen to buy all sorts of assets—including stocks!
Abenomics has continued for four years… with mixed results.Read full article... Read full article...
Thursday, June 09, 2016
Jörg Guido Hülsmann writes: It may seem unusual that an economist would talk about culture. Usually, we talk about prices and production, quantities produced, employment, the structure of production, scarce resources, and entrepreneurship.
But there are certain things that economists can say about the culture, and more precisely, that economists can say about the transformation of the culture. So what is culture? Well, to put it simply, it is the way we do things. This can include the way we eat — whether or not we dine with family members on a regular basis, for example — how we sleep, and how we use automobiles or other modes of transportation. And of course, the way we produce, consume, or accumulate capital are important aspects of the culture as well.Read full article... Read full article...
Saturday, May 21, 2016
Uffe Merrild writes: Denmark has been mentioned a few times during the American election campaign by Democrats who favor larger government and high redistribution of income, but also pundits like Paul Krugman have written about Denmark in his October 19th column at The New York Times. Fortunately most of his fiscal and general economic Keynesian points have been refuted in Episode 6 of Contra Krugman by Thomas Woods and Robert Murphy. But, some points regarding monetary policy need attention as well.Read full article... Read full article...
Friday, May 20, 2016
A highbrow is the kind of person who looks at a sausage and thinks of Picasso. - A. P. Herbert
The first reaction from the hard money camp would be to state we are insane or that we longer value hard money. Taking that line of thought would only set you on the wrong track; we are not against hard money or are the Gold standard. However, most of those in the hard money camp have a hard time dealing with reality. The reality is that very few even understand this concept and even fewer would be willing to embrace it. In the end, it’s the masses that determine if whether or not a new trend, fad or rule will be embraced or not. Have the masses done anything other than occasionally complain about how prices are rising? Did they embrace the Gold bull market from 2002-2011? Most of them focussed on the crash aspect and not the fact that Gold had soared significantly higher than it was back in 2002 despite the strong pullback? The answer on all fronts is no; to understand why no good deed goes unpunished, or why the masses will crucify you if you try to alter their mindset, watch Plato’s allegory of the cave. It provides a very simple and clear look into the mass mindset.
Monday, May 02, 2016
In 1967 the Jefferson Airplane sang:
“When the truth is found to be lies,
And all the joy within you dies…”Read full article... Read full article...
Wednesday, March 30, 2016
Establishment economists are the first vindicators that having a weak currency is essential to foster international trade. The utter absurdity that a nation can prosper when their coin of the realm buys less is inherently illogical. Yet, for the globalists, maintaining the myth that promoting exports in a system that is designed around transporting our domestic manufacturing capacity overseas is intellectually incongruent. So what is the essential argument for having a strong currency?Read full article... Read full article...
Friday, March 25, 2016
Global Currencies Madness:
When central banks and politicians “manage” global currencies, we can expect:Read full article... Read full article...