In Thursday’s post, I noted that central banks are adding approximately $2 trillion a year to the world’s money supply. Most of that freshly-created money goes into government bonds. However, some of it goes into equities. That’s right, stocks, like those traded on the NYSE and the NASDAQ. The Swiss National Bank and the Bank
In “Cries for more money creation grow louder,” (Feb. 29, 2016) I noted that Financial Times chief economic commentator Martin Wolf called for central banks to deposit money directly into the accounts of all adults in an effort to stimulate economic activity. Now, John Mauldin, noted publisher of numerous advisory services, recently wrote that former
The main reason to buy gold and silver is to protect against currency debasement, which is brought on by massive deficit spending that requires the Fed to print dollars to cover debt that could not be sold to private investors.
“First they ignore you, then they laugh at you, then they fight you, then you win.” — Mahatma Gandhi Mahatma Gandhi successfully sought the overthrow of tyrannical British rule in India via non-violent civil protests. In doing so, the above quote became synonymous with his name. Basically, Gandhi’s quote outlines how new ideas are received
Belatedly, Zimbabwe recently declared its currency, the Zimbabwe dollar, worthless. The marketplace recognized the worthlessness of the Z$ in 2009, when the Zimbabwe government adopted the US dollar as its main currency. Account holders with Z$ balances of zero to Z$175 quadrillion will be paid a flat US$5. A “quadrillion” has fifteen zeros.
The Congressional Budget Office (CBO) recently changed its projection for fiscal year ending September 30 to show a deficit of $506 billion. Despite the national debt now being north of $17.6 TRILLION and having doubled since Obama took office, statist economists, columnists and apologists immediately praised the $506 billion number. The LA Times; “. .
Jim Sinclair recently predicted $3,200 – $3,500 gold by 2020 and “emancipated gold” hitting $50,000. Because of Sinclair having made some really accurate calls in the past, his prediction caused quite a stir in the gold community. Even Ron Paul commented and gave reasoning why Sinclair’s predication is not preposterous.
When I entered the silver bullion business in 1973, few people knew what the Federal Reserve System was and what it did. Still fewer knew it was a central bank, and with little knowledge of what a central bank did. Those that knew the Fed existed knew that it expanded the nation’s money supply, which
In Austrian Economics circles there is currently a debate whether Bitcoin – the most widespread of the new crypto-currencies – is a legitimate currency or just a complex scam. The debate has become some somewhat reminiscent of the inflation vs. deflation arguments of a couple of years ago with each side digging their heels in
Despite the buzz about Janet Yellen being selected to head the Fed, so far the gold and silver markets are unimpressed. Over the months leading us to Obama’s selection, there was much speculation that a Yellen appointment would fillip gold and silver prices, but that was not the case. Prices were expected to rise because