If you’ve paid any attention to the inflation vs. deflation debate you’ve noticed that it is fairly convoluted. I’ve read the arguments in great detail and have come to the conclusion that it’s mostly a problem of semantics. Strictly speaking, deflation is a decrease in the supply of money and credit. As bad loans are written off, the supply of credit, which represents the lion’s share of the money supply, decreases.
Clearly a reckless Federal government is good for gold – or more accurately, our collective can kickers in Washington DC are very bad for the dollar. Contrary to the disinformation campaign of Wall Street, and their Federal Reserve sponsored economists, gold is not a bubble. Central banks are now net buyers of gold, and not because of tradition, as Mr. Bernanke would have you believe.
The history I was taught in school never held much interest for me. It seemed like a random progression of names, events, and dates attached to motivations that made little, if any sense. It wasn’t until I began my self study of economics, and particularly the nature of money, that a whole new world was presented to me. This was a world whose history was anything but random. In fact, almost every event throughout the history of Western civilization could be traced along a single thread of motivation: the control of money and resources.
Perhaps you’ve seen the stories this week about the $6.6 billion in one hundred dollar bills that the US Government managed to “lose” in Iraq back in 2003-4. Apparently, as part of the Iraqi reconstruction effort, plane loads (C-130 Hercules to be exact) of palettes containing shrink wrapped 100 dollar bills were flown in. $22 billion in all. As the Pentagon is attempting to close the books on the operation this week, it was revealed that some $6.6 billion cannot be accounted for.
In an interview on the Today Show yesterday, President Obama again exhibited his woeful lack of economic understanding.
According to Obama, our economic woes are structural problems that have resulted from large increases in productivity – like installing ATM machines and getting rid of bank tellers.
Alan Beattie, International Economy Editor of Financial Times and former economist at the Bank of England (the UK’s central bank), has produced the latest piece in the disinformation campaign against gold. In his article, “Britain was right to sell off its pile of gold,” Mr. Beattie puts forth the argument that Gordon Brown actually did
Friday, the FDIC closed eight banks, three in Florida, two in California, and one in each of three other states: Michigan, Massachusetts and Washington. So far this year, the FDIC has closed fifty banks, which puts it on pace to match last year’s 140 closures. To put this in perspective, in 2008 there were only
Mises Institute to hold seminar in Phoenix, AZ Saturday, April 10, 2010. Five authorities on money to speak to the dangers of monetary debasement and how it can lead to despotism.
A recent Financial Times noted that the proposed overhaul of US financial rules threatens the credit ratings of Bank of America and Citibank. Standard & Poor’s, one of the world’s top two credit rating agencies, says that as proposed, the rules would make it less likely that the banks would be bailed out by taxpayers if the bank ran into trouble again.
In moves that should have surprised no one, last week Zimbabwe defaulted on debt repayments and the United States raised its debt ceiling limit to avoid defaulting. Zimbabwe owed Caledonia Mining a mere $3 million. Because the debt was in US dollars and could not be printed (at least not by the Zimbabwean central bank),
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