The issue of where a central bank stores its gold remains on the forefront. The Dutch people want to know where the Dutch gold is stored. Venezuela called home some 160 tons that previously was held in the US, London and Canada. China has made it clear where its gold is to be with the
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
A paradigm shift in silver could result in explosive price moves to the upside. Steve St. Angelo predicts such a paradigm shift.
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”.
Gold serves as the basis of the global monetary system for the simple reason that it exists as a finite, physical store of value. And unlike every issuance of debt or piece of printed money, there is no counter party risk – unless, of course, you don’t actually have the physical gold in your possession. Then it’s no more a basis of one’s reserves than all of the digital money created with a keystroke.
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.
The 99% and the 1%. We see it all over the news. There are protest movements in almost every major city focused on it. We all know that something is wrong, but almost no one can put their finger on the root cause. The reason is that the vast majority of people have no idea how banking works or where money comes from.
As anticipated, the solution to the banking crisis in the eurozone is the printing of still more fiat money. However, this approach is not a solution at all but a temporary band-aid that will have to be reapplied again unless changes are made in the Europeans’ love affair with socialism. Changing that will be much more difficult than getting six central banks to create more fiat currencies.
The title to an AP article on yahoo.com’s finance page tells it all: World’s central banks act to ease market strains, Central banks take action to provide cheaper dollar liquidity to financial system. Read the article if you want, but title really does tell it all. This is not a novel “solution” to the world’s