A friend of mine, who was struggling with the idea of buying gold, lamented that gold only had any value if someone else perceived it to. Yes that’s true. As it is for everything, whether you’re talking about a share of Apple stock or a 1977 Chevy Malibu.
There’s so much confusion in the short term markets regarding QE and its ilk, that it’s easy to get whipsawed into oblivion – or at least complete frustration. You must maintain a steady fix on the big picture. Regardless of what the mainstream media experts would have you believe, none of the problems of the last four or forty years have been solved. In fact all of them are now worse.
I highly encourage you to read the latest interview with Hugo Salinas Price. Mr Price is a retired billionaire who made his fortune via a chain of appliance stores in Mexico. He is also a tireless advocate of sound money. His plan to reintroduce silver as a competing currency in Mexico would make it the most sought after money in the world bar none. It is well worth your time to understand the details of how he proposes to do this.
In the GOP presidential debates, when Ron Paul talks about economics he is a giant among pygmies. None challenge him. The best his opponents can come up with is to rail about the need to balance the budget. But, when he brings up the issue of the business cycle, the other candidates look like they want climb under the podium. Further, no moderator has ever sought to question his economic positions.
Fractional reserve banking is one probably the least understood aspect of money; further misunderstood is how fractional reserve banking—when it is used to expand the money supply—impacts our economy and causes the business cycle, which, if it runs to extremes, results in recession at best, depression at worst. People who want to protect savings and
ell, here’s an interesting tidbit from the Treasury Borrowing Advisory Committee (TBAC) compliments of Zerohedge. Their latest letter to Timothy Geithner contained the following paragraph: “There was a lengthy discussion regarding the bid-to-cover ratios…
It’s little wonder that so few people in the United States and Europe can think straight about basic economics with the constant flow of misinformation coming from the media and universities. Here’s an interesting piece out of Scotland from an Oxford and Harvard trained editor titled “When inflation could be good for you”.
Here’s an excellent interview with former Dallas Fed Vice President Gerald O’Driscoll in which he exposes the Federal Reserve’s recent dollar swaps with the European Central Bank for what they are: a continued bailout of Europe’s banking system by the US central bank.
Various reports coming out of last week’s G20 meeting in Cannes are suggesting that some member countries had proposed Germany use its gold reserves as collateral for a Eurozone bailout fund. This brought a series of quick and unequivocal responses:
Last week, the History Channel’s series Decoded, took on the question of whether Fort Knox actually contains any gold. It is available on Youtube in three parts, in case you missed it. Admittedly I had pretty low expectations for the mainstream media’s treatment of the topic. Of course the question is never answered, but by the time it was over…