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Another rough day for precious metals and commodities yesterday, with the Organisation for Economic Cooperation and Development predicting a fall in global growth and arguments flaring between European leaders on the question of Eurobonds. On top of this, former Greek prime minister Lucas Papademos stated in an interview that ...
The reason we accept paper money as a store of value is habit. This habit has its origins in history, when banks took our gold as deposit and issued paper receipts for it. The gold has gone, but the paper with its habitual value remains, and we accept it without question. The only backing is a vague government promise. There is no sound ...
The French have spoken: they want socialism. But instead of speaking, the French should have been listening – listening to history, that is. It might perhaps have given them pause for thought. In Grand Illusions: Francois Mitterrand and the French Left, Joseph P. Morray describes how the French people turned to socialism by ...
Much has been learned from the ongoing financial debacle that has been painfully rattling the world’s financial structure in recent years. Foremost among these valuable lessons is the realisation that all financial assets have risks. Even the bonds of many sovereign nations are being called into question, and rightly so. Though ...
Here is a puzzle for Keynesian and other neo-classical economists. When a consumer buys something, he must choose; and if he increases his purchase of one product, he must reduce his purchases of other products by the same amount. In other words he cannot buy both. This must be true for whole communities as well. How then can you have ...
Europe is firmly back in the news again, with the European Central Bank hinting that it may resort to further easing measures in order to relieve the pressure on Spain. Benoit Coeure, executive director at the European Central Bank, pointedly noted yesterday that market fears over economic problems in Spain were "not justified". ...
The State Bank of Vietnam is instituting a de facto nationalisation of Vietnam’s gold market, in an effort to restore confidence in the country’s currency – the dong. Vietnam is suffering from a growing current account deficit and record-high inflation. The government's new measures will have unpleasant side effects, as ...
Easter Friday and western markets are taking a breather for the day. Yesterday’s price action in gold and silver was mildly encouraging from a bull’s standpoint, with the gold price sticking comfortably above $1,600, buoyed partly perhaps by the pain in Spain, which is taking up increasing space in news headlines. ...
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