Ideas and analysis on money, markets and the world around us.
Over the last week-and-a-half we’ve had a very good example of why the Fed and other central banks have no practical alternative to continued money printing. The mere hint that the FOMC would start “tapering” its…
Read the articleMany people believe there is a significant risk that the Irving Fisher debt-deflation theory of great depressions is still an economic threat today. They overlook the fact that Fisher published his theory examining…
Read the articleIt is approximately a month since Japanese monetary policy makers destabilised their financial markets, and triggered instability everywhere else. Emerging-market currencies have been hammered, as have European and US…
Read the articleIt’s an exciting week for “Fedologists” – those successors to the Kremlinologists of the Cold War, who made a living out of analysing what Soviet central planners were up to. Today’s American central planners at the Fed…
Read the articleThe price of gold continues to oscillate between $1,370 and $1,400 per troy ounce, still unable to break higher, but also finding significant support a good 4% above the April minimum. Similarly silver seems to be…
Read the articleUp until the late 1960s, it was considered prudent for everyone to have some savings. By forgoing consumption, savings gave the ability to consume more at a later date through the accumulation of interest income. This…
Read the articleBoth Keynesians and monetarists believe that increased government spending, or more money injected into the economy, is sometimes necessary. The intervention is in the form of unfunded government spending, artificially…
Read the articleUS M3 rose above $15.1 trillion in April, however monetary growth seems to have slowed down significantly over the past 3 months, despite the Federal Reserve’s continuing to inject over $85 billion a month as part of…
Read the articleThe price of gold is hovering just under $1.400 per troy ounce as it consolidates well above its April low of $1.321 per ounce which set the bottom and the current support level. The major resistance level is now at…
Read the articleIt is clear that Western capital markets no longer generally regard gold as money. It has been relegated to the status of a risk asset, useful collateral, or simply a commodity with a history of being used as money.…
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