Mario Draghi, ECB chief, again reaffirmed his pledge to print more euros next month in a Keynesian effort to fillip economic activity in the eurozone. In December, the ECB’s measures fell short of market expectations, and stock markets declined. This time Draghi does not plan to disappoint.
The main reason to buy gold and silver is to protect against currency debasement, which is brought on by massive deficit spending that requires the Fed to print dollars to cover debt that could not be sold to private investors.
It’s astounding to hear talking heads blame the stock market collapse on falling oil prices. Lower oil prices should have caused stocks (except oil stocks, of course) to rise. This is especially true of the stocks that make up the Dow Transportation Index.
As is the case with most firms in the financial field, we have TVs running in our offices from the time we open to closing. Sometimes, we learn something of value, but most of the time the commentators talk about meaningless developments, such as the daily changes in value of the dollar to other currencies.
The Fed did not listen to me and leave rates unchanged. They hiked .25%, as was widely expected in more learned circle. I thought that Yellen and Company would fear being blamed for either a massive stock market sell-off or recession, both of which we may still see. The New York Times saw the Fed
Although many gold buyers readily accept that “gold is real money,” few can explain why gold is real money and why moving away from gold as money to fiat money distorts economic activity. The distortion being a boom followed by a bust, and the size of the distortion being determined by the amount of the
Frank Holmes of U.S. Global Investors recently published an excellent brief history of the role that gold has played in the American economy since 1789. Although a few salient facts were left out, the essay is an excellent, informative and easy read.
In the scheme of things, Greece’s problems are small potatoes compared with China’s. What makes the possibility of a Grexit (Greece exit from the Eurozone) significant is that it would call into question the concept of a unified Europe. If Greece exits, what about Portugal, Spain and Italy, which are also struggling with massive debt?
Greece remaining in the eurozone monetary system and keeping the euro as its currency appears less likely at the end of every marathon meeting of eurozone prime ministers and Greek representatives. Many analysts are of the opinion that dumping the euro and going back to the drachma would alleviate some of Greece’s pain. Of course,
China has come a long way since the days of Richard Nixon’s and Henry Kissinger’s “Ping Pong Diplomacy.” Its economy has grown to be the world’s second largest economy, and its manufacturing base is home to consumer products used around the globe. Now, China has broken into a nearly century-old financial club, the London Bullion