Last week, Fed Chairman Ben Bernanke made a speech in Chicago where he warned that a long period of interest rates could lead to asset price bubbles or speculative lending ending in a new financial crash. Sadly, Bernanke is like a general fighting the last war. He’s worried about another banking crisis, fearful of another
The following is an excellent presentation by Christine Hughes of Otterwood Capital Management on the beginning of the end of the Japanese bond market and how it has negatively impacted gold in the short term. On April 4, 2013 the Bank of Japan announced their “2-2-2-2” policy in which they will attempt to create 2%
The entire purpose of modern economics is to obfuscate the truth; to convince the masses to support policies that are contrary to their own interests. In the early twentieth century, economists in the United States realized the opportunity to transform their lot in life from that of dreary academicians to well paid pseudo-celebrities by becoming
With gold and silver having suffered their biggest declines in their 12-year bull market, Bloomberg TV invited Ron Paul to comment. Watching the video, one can easily see that the interviewers thought that they could hammer Ron, a long-time and vocal advocate of gold, because of the price drops. They were wrong. The video is
Stanley Druckenmiller is the former manager of Duquesne Capital, one of the most successful hedge funds ever. He recently gave a rare interview with CNBC in which he spoke about entitlement reform and the implications of our unsustainable national debt. Washington DC has a serious spending problem. One that will eventually lead to a dollar
In this must watch video, British MEP Daniel Hannan addresses the Oxford Union as part of its debate on the Occupy Wall Street movement. The act of bailing out the banks with the taxpayer’s money, he says, will one day be viewed as a generational crime. The Occupy movement was correct in that something had
Uncharted Territory, LRC podcast #331 Bill Haynes and Lew Rockwell discuss why the US has avoided hyperinflation and why the dollar may long be the world’s reserve currency, despite the Fed’s promises of unlimited money creation. The Fed, as Lew notes, came into existence after major bankers met on Jekyll Island, Georgia, and formulated
There’s an interesting interview with Marshall Auerback of Pinetree Captial Management posted over on Mineweb.com. It’s interesting not because of any particular subject matter, but rather the complete contradictions presented therein. The first half consists of a well-reasoned case for owning gold and why it is being remonetized in an overextended financial system. By contrast, the second half is a fallacy laden justification of many of the failed policies that are driving people to own gold.
In May, I presented what appeared to be an extremely bullish divergence between the price of silver and its Accumulation-Distribution Line (ADL). I asked whether the price of silver would rise to meet its ADL or would the ADL fall to match the price? Two and a half months later, there has been absolutely no resolution to this situation. The divergence remains, and if anything, has actually increased slightly.
I’m always amazed at the number of people I meet who believe that Washington DC will still get its spending under control, that it’s just a matter of getting the right person, or the right party, into office and disaster will be averted. Or, that when we finally hit a real crisis, politicians will do the right thing – which is, incidentally, the complete opposite of what they’ve been doing for the last 100 years. Those are long odds if you ask me.