Sunday, September 21st, 2014 MST

Still more money creation

China is the latest to join the money printing binge, this time printing the equivalent of $81 billion.  The goal: to fillip an economy that grew in August at “only a 6.9 percent” annualized rate.  If the US economy were growing at 6.9 percent, the Dow would be at 25,000.

The world’s central bankers are true believers when it comes to Keynesian economics.  The Chinese are no different.  However, at least the Chinese government implemented programs that encourage the Chinese people to buy gold and silver, something not seen in any other country.

Fear of deflation guarantees inflation

Fears of financial crises aside, the primary reason for owning gold is as a hedge against inflation, inflation being defined as an increase in the money supply.   As more money is printed, the dollar loses value and prices rise.  A excellent example of this principle is the menu at an iconic restaurant in Phoenix, Durant’s.

Whatever it takes

In July 2012, Mario Draghi, president of the European Central Bank, steadied European money markets simply by saying, “. . . the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” Apparently, simply promising to do whatever it takes was enough because the ECB had

The Ukrainian conflict and gold prices

Reports abound that Tuesday’s (Sept. 2) drop in the price of gold was due to a ceasefire between Ukraine and separatist forces, or whatever you wish to call them.  Russian proxies–even Russian soldiers–would be more accurate. It is unlikely that any resolution to the Ukrainian conflict will please the West.  Vladimir Putin holds all the

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