Ideas and analysis on money, markets and the world around us.
The interest rate fallacy There is a widespread assumption that interest rates represent the cost of borrowing money. In the narrow sense that it is a rate paid by a borrower, this is true. Monetary policy planners…
Read the articleBrexit has been a long, drawn-out saga. But finally, Theresa May’s indecision appears to be coming to an end. She has finally been cornered in a tragic opera with more twists and turns than Wagner’s Ring Cycle. May’s…
Read the articleGold and silver were more volatile this week, but they appear to be going their separate ways. Gold was up a dollar from last Friday’s close in European morning trade today (17 May), while silver was down 25 cents at…
Read the articlePresident Trump has declared he will extend tariffs of 25% on all America’s imports of Chinese goods. China is responding with tariff increases of its own. The consequences of this action and reaction will be to…
Read the articleThis week, gold traded in a very narrow range, up $6 from last Friday’s close at $1285 in European morning trade. Silver drifted lower, losing 15 cents on the week to $14.79 on the same time scale. Comex volume in gold…
Read the articleFriedrich von Hayek first published The Road to Serfdom in 1944. His book was subsequently popularised by a condensed version in The Reader’s Digest. This article re-examines Hayek’s theme in the context of today’s…
Read the articleGold and silver sold off this week, becoming heavily oversold in the process. Gold lost $15 on the week to trade at $1271 in early European trade today (Friday) and silver 46 cents to $14.64 over the same time-scale.…
Read the articleBehind the Huawei story, we must not forget there is a wider financial war being waged by America against China and Russia. Stories about China’s banks being short of dollars are incorrect: the shortage is of inward…
Read the articleFrom last Friday’s close gold recovered slightly after last week’s sell-off, gaining $7 at $1283 by early European trade this morning. Silver was up three cents at $15.04 over the same time period. Trading was generally…
Read the articleThis article explains why the US Government is ensnared in a debt trap from which there is no escape. Its finances are spiralling out of control. In the context of a rapidly slowing global economy, the budget deficit…
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