Sunday, November 23rd, 2014 MST

How the Government is Creating a Black Market in Financial Services

When the Dodd-Frank law was adopted with its vast increase in bank regulatory authority, the “too big to fail” problem was made permanent. In the name of never bailing out the banks again, new regulations have been imposed and some other financial services (like hedge funds and insurance companies) have been swept into the same regulatory net.

What do you suppose is going to happen now?

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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