Tuesday, December 11th, 2018 MST

Category: Money

Ron Paul and gold

Millennials, It was astonishing that when Ron Paul dropped out of the 2012 presidential race many of his followers jumped to supporting Bernie Sanders, an avowed socialist.  Ron Paul, of course, is a libertarian who rails against socialism in all forms.

A Fed rate hike in the works?

New York Fed President William Dudley said that he supports another rate hike this year if the economy “evolves as he expects.”  He also thinks it’s reasonable for the Fed to start selling part of its $4.5 trillion portfolio, which it accumulated through several quantitative easing programs.

A major danger of paper money: Rupees cancelled

The biggest problem with paper money is that it can be created at will; and history shows that whenever paper money is disconnected from gold, it is eventually printed until it is worthless.  Sometimes its destruction comes quickly,  some over decades. The second biggest problem with paper money is that it can be cancelled by

Driving the markets

Central bank actions and expectations of central bank actions are driving investment markets: the bond markets, the equity markets and the metals markets.  Economic news does not move the markets, except that markets move on how investors think that central banks will react to economic news.