Gold in 2012
We all understand that the future is unknowable. Events yet to come cannot be predicted. Nevertheless, the outlook for 2012 is probably set in stone, and the reason is simple. The financial crisis imperiling the globe…
Read the articleA wider perspective.
Ideas and analysis on money, markets and the world around us.
Europe’s future
Now the New Year reviving old desires, The thoughtful soul to solitude retires. The Rubaiyat of Omar Khayyam We are at the threshold of a New Year and accordingly should accept Omar Khayyam’s recommendation, and as our…
Read the articleGold price set for hyperbolic increase
I recently posted an article for GoldMoney showing how US True Money Supply (TMS) appeared to be growing at a hyperbolic rate, and that gold was also on a hyperbolic course. The difference between hyperbolic and…
Read the articleMoney supply explosion will lead to accelerating inflation
This is the time of year when City pundits produce their forecasts for the forthcoming year. Historically there has been little point to this exercise. Instead, here is the one chart which defines the background to all…
Read the articleEurozone government defaults looking certain
For some time I have taken the view that rescuing eurozone governments from their financial crises was too big a job for the European Central Bank, which should stick to keeping the banking system going. The only hope…
Read the articleThe End of the EU
Last Friday, David Cameron came back from Brussels having rejected proposals to draft a new European Union treaty, having failed to get promises of adequate safeguards to protect Britain’s financial sector. But given…
Read the articleDeflating the derivatives balloon
Derivatives have a bad name for many commentators, with some describing them variously as dangerous or even weapons of mass destruction. The sheer size of over-the-counter derivative markets is staggering. According to…
Read the articleCurrency swaps – the beginning of a 'solution'?
By far the most important event of the week was the joint announcement by the world’s leading central banks that they were extending existing US dollar swap agreements and lowering the swap rate. Furthermore, these…
Read the articleThe transatlantic panic
In recent months the European sovereign debt crisis has acquired a transatlantic scope. The political posturing in the summer surrounding the debate to increase the US government’s debt limit has highlighted the…
Read the articleWatch out for maturing debt
It was hoped that the appointment of Mario Monti to head a new Italian government would stabilise Italian and European bond markets. Instead, after a brief pause, bond yields on Italian debt rose back above the seven…
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