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.
At the Houston Mises Circle January 30, I sat on a panel and was asked how I saw the gold and silver markets doing in 2016. Basically, I said that metals prices hinged on what the Fed does with interest rates and with how the stock market reacts.
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.
Charles Payne, host of Fox Business News “Making Money with Charles Payne,” may have put his job in jeopardy Friday when he called into question the need for the Fed, the US’s central bank. Make no mistake, central bankers and the people who benefit from central banking are powerful, with tremendous influence in the media.
To Keynesians, easy solutions reside for monetary and economic problems. When the economy is in recession, deficit spend. When inflation heats up (meaning rising prices, which the developed world hasn’t seen for some time), choke back the money supply. Problems solved. Recessions are averted; inflation is held in check. So, if “managing” the economy is
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.
Quantitative easing opened a Pandora’s box that will not be closed until massive inflation spreads worldwide. Only when people quit accepting the digital money that central banks spew will it end. However, the end may be far, far away. Traditionally, central banks created money “out of thin air” to finance wars by buying new government
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