Ideas and analysis on money, markets and the world around us.
The Eurozone is bust. The deterioration of TARGET2 imbalances have been hardly noticed, but in recent months it has been alarming. Despite official denials over the years that it is a matter of concern, it is…
Read the articleGold and silver lost most of last Friday’s strong rally during Monday and Tuesday before recovering some of their losses subsequently. In European morning trading today, gold was at $1909, down $20 from last Friday’s…
Read the articleDefinition: Hyperinflation is the condition whereby monetary authorities accelerate the expansion of the quantity of money to the point where it proves impossible for them to regain control. It ends when the state’s…
Read the articleGold and silver continue to consolidate in a narrow range this week, with gold up $16 on balance at $1914 in morning London trade, and silver up 26 cents at $24.27 in the same timeframe. Comex volumes were light to…
Read the articleThis article explains the effect of monetary inflation on GDP. Nominal GDP is directly inflated by additional money and credit, so GDP growth is simply a reflection of additional money in the economy. It gives no clue…
Read the articlePrecious metals rallied this week, with gold up $50 to $1910 in early morning trade in London, while silver rose $1 to trade at $23.86. It appears that the bullion banks are being squeezed again, and the table below…
Read the articleNote: all references to inflation are of the quantity of money and not to the effect on prices unless otherwise indicated. In last week’s article I showed why empirical evidence of fiat money collapses are relevant to…
Read the articleThis week saw heavy falls for precious metals, with gold losing $79 from last Friday’s close to trade at $1871 in early morning UK time today, and silver was hammered $3.65 to $23.14 over the same period. Gold has…
Read the articleThis article examines two inflationary experiences in the past in an attempt to predict the likely outcome of today’s monetary policies. The German hyperinflation of 1923 demonstrated that it took surprisingly little…
Read the articleAs our headline chart shows, this week gold and silver continued its sideways drift in a narrowing trading range. On the week, gold rose by $15 to trade at $1954 in early morning European trade today, and silver was…
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