The Myth of the Unchanging Value of Gold

Wednesday, September 10th, 2014 by posted in Banking, Capitalism, Economics.
gold_standard teaser

Reprinted from According to mainstream economics textbooks, one of the primary functions of money is to measure the value of goods and services exchanged on the market. A typical statement of this view is given by Frederic Mishkin in

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Penny Polemics and Pontifications

canada penny

No sooner does the Canadian penny gets axed, do the establishment chimps start flinging dung at the critics of this move.  In the latest from the National Post, anyone criticizing the government’s decision to drop the penny is casually labeled


The Decline and Fall of the Roman Denarius

Monday, February 27th, 2012 by posted in Banking, Capitalism, Economics, History, Politics.
Fall of Rome

History repeats itself, so the scholars say.  But according to Mark Twain it just rhymes.  Literary quips and hair-splitting aside, I’ve found that one of the most valuable things anyone can do to advance their knowledge and understanding of the


And the Global Liquidity Binge Continues

Friday, January 27th, 2012 by posted in Economics.

Forget Fed chairman Bernanke and his central planning cronies “considering additional asset purchases,”  the unsettling truth is right before your eyes (charts via Bianco Research at The Big Picture): Here are some comparative charts (note the first is scaled in

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Is Quantitative Easing 3 Coming in U.S.?

Sunday, December 4th, 2011 by posted in Capitalism, Economics.

Within the past few months, many financial commentators and pundits have speculated that the Federal Reserve could soon announce a renewed push at “quantitative easing.”  These prediction usually go hand in hand whenever there is an upcoming Federal Open Market


Banking Jargon 101

Thursday, December 1st, 2011 by posted in Capitalism, Economics, Politics, Socialism.
Currency Swap

In case you’ve been living under a rock recently, you would have noticed that another major announcement from the world’s monetary authorities was released a couple days ago.[ref][/ref]  Markets everywhere rallied as investors gleefully piled in to just about every

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Fed, BoC, and Other Central Banks Ready To Save Europe

Wednesday, November 30th, 2011 by posted in Capitalism, Economics, Uncategorized.

It was only a matter of time: (Reuters) – The world’s major central banks acted jointly on Wednesday to provide cheaper dollar funding to European banks facing a credit crunch as the euro zone’s debt crisis drove EU ministers to


Soros Calls for More ECB Intervention

Monday, November 21st, 2011 by posted in Uncategorized.

Color me a shade of unsurprised blue.  Financial heavy weight and big government buddy George Soros is out with another plan to save the EU.  Rather than rely on the forced but subtle nationalization of undercapitalized banks by euro governments,

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Jonathan Weil On the Insolvency of FRB

Saturday, November 19th, 2011 by posted in Uncategorized.

Remember when Murray Rothbard wrote this classic from The Case Against the Fed? For the very essence of fractional-reserve banking is that the bank is inherently insolvent… In outlining what he calls the “joke” balance sheets of European banks and

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Gold Confiscation in Tough Times

Wednesday, November 16th, 2011 by posted in Uncategorized.

In the land of central banking where large financial institutions buddy up with government bureaucrats for their fill of private profits and socialized losses, here is just another outcome of an unsustainable fractional reserve banking system: [youtube_sc url=] Since Gerald

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A Twisted QE3

Friday, September 23rd, 2011 by posted in Capitalism, Economics, Education, Politics, Socialism, Trade.

The Federal Reserve announced yesterday that they will engage in a policy called “the twist” – meaning they will sell some of their short-term US treasury holdings in exchange for long-term US treasuries.  This is said to be neutral to

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The Definition of Insanity

Thursday, September 15th, 2011 by posted in Capitalism, Economics, Politics, Regulation, Socialism.
Money Black Hole

Just a few hours ago, the European Central Bank announced “in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of


40 Years of Fiat Currency – Is Gold as ‘Cheap’ as it was in 1971?

Thursday, August 18th, 2011 by posted in Capitalism, Economics, Education, History, Politics, Politique.
From 1971 the US Dollar was backed by Elvis Presley's Gold records - All 141 of them!

Originally Published on Monday was the 40th anniversary of the irredeemable fiat dollar. Unlike the preceding 39 anniversaries, this one was actually noticed! Here, I present several charts that show the changes to the Fed’s balance sheet since 1971.

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CNBC, Clueless in Economics

Thursday, August 11th, 2011 by posted in Economics, Education, History, Politics, Regulation.

This morning before heading out to work I managed to watch a panel discussion on CNBC. Jim Grant of Grant’s Interest Rate Monitor was a guest for about 15 minutes. Now I usually watch CNBC strictly for entertainment purposes, that

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Can Precious Metals Save Your Portfolio?

Wednesday, August 10th, 2011 by posted in Capitalism, Economics, Education, History, Trade.
Gold and Silver Bars

With the recent market turmoil, investors of all types are increasingly turning to an asset class that has been out of favour for decades; precious metals. Gold in particular is attracting serious attention. In recent months we’ve seen Bill Gross

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Savers vs. Speculators

Monday, July 25th, 2011 by posted in Capitalism, Economics, Politics, Regulation.

Here is a great short documentary by financial analyst Max Keiser on how most western economies were, and still are, geared towards low interests rates and speculation by the policies of their central banks. I don’t think Keiser thinks of

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Competing Currencies: The Gold Standard of Monetary Systems

Wednesday, February 23rd, 2011 by posted in Capitalism, Economics, History.
Could this be your future currency of choice?

Discussions regarding monetary policy and currencies in particular will often include some talk of abandoning fiat currencies in favour of commodity backed units of wealth.  While the defunct Confederate States of America attempted to back their confederate currency with cotton

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Paper vs. Gold

Wednesday, February 9th, 2011 by posted in Capitalism, Economics.
William McKinley and the Gold Standard Act of 1900

Gold versus Paper Most people take it for granted that the world will never return to the gold standard. The gold standard, they say, is as obsolete as the horse and buggy. The system of government-issued fiat money provides the


The Fiat Money End Game – to Infinity and Beyond

Monday, December 20th, 2010 by posted in Capitalism, Economics, Politics.

Jim Sinclair has a slogan “QE to infinity.” That’s “Quantitative Easing to infinity.” That’s inflation to infinity. That’s the case for gold and silver in a nutshell. I think he’s right. I’d like to explain why I think he’s right,