Ideas and analysis on money, markets and the world around us.
There is a general belief that government finances are somehow immune from the financial reality faced by everyone else – an illusion fostered by bond markets and supported by the public’s wishful thinking. Look no…
Read the articleNeo-classical economists underestimate the importance of the link between savings and investment. The two should be regarded as linked together: you need savings to be available for investment in new production for the…
Read the articleFor most of the last century the default currency for international settlements has been the US dollar. This has given America ultimate power over international trade. In recent months, the US wielded this power against…
Read the articleSince China began to embrace economic progress in the 1990s and let the compelling forces of capitalism take hold to raise living standards in that country, its impact on world markets has been profound. Chinese capital…
Read the articleGreece has now defaulted, and other eurozone governments as well as agencies such as the International Monetary Fund, European Central Bank and European Investment Bank have retrospectively inserted themselves as senior…
Read the articleAs far as precious metals are concerned, there's plenty of comment about the bullish case for these metals with reference to economics and politics, but precious (if you'll forgive the pun) little analysis from a more…
Read the articleAccording to a story in Wednesday’s Wall Street Journal, the US Federal Reserve is considering buying long-term Treasury and mortgage bonds in return for deposits held at the Fed. There has been no comment from the Fed…
Read the articleIn a recent article in Fortune, Warren Buffett reiterated his well-known view on money. Far less celebrated, however, is the discerning view of his father, Howard Buffett, expounded in a brilliant speech in 1948 while…
Read the articleSons often rebel against their fathers, but what accounts for the difference between Howard Buffett’s view of gold, and that of his son – the famed investor Warren Buffett? While the latter is famous for his disparaging…
Read the articleRecently there have been reports that if Greece defaults on the new bail-out package, creditors will be entitled to seize her gold. Whether or not this is true, it raises one big question: given the severe financial and…
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