Letter from a Reader
Monday, the 30th of April 2012
I recently received a letter from a reader who wondered why the United States should back its currency with gold. To learn more...
When Money Fails to Function
Friday, the 30th of March 2012
Money functions best as a medium of exchange when its value fluctuates the least. When it maintains a relatively constant value, it allows people to price goods relative to other goods. When money fails to function, how can people price goods?
WSJ: Fed Buying 61 Percent of U.S. Debt
Thursday, the 29th of March 2012
The Federal Reserve is propping up the entire U.S. economy by buying 61 percent of the government debt issued by the Treasury Department, a trend that cannot last, Lawrence Goodman, a former Treasury official and current president of the Center for Financial Stability, writes in a Wall Street Journal opinion article published Wednesday.
As U.S. Rakes Largest Monthly Deficit in History, 2012 Tax Revenues Net of Refunds Trail 2011
Saturday, the 17th of March 2012
A few days ago we noted that based on preliminary data, the February budget deficit would hit $229 billion (yes, nearly one quarter of a trillion in one month, about where real Greek GDP is these days)—the largest single monthly deficit in history. Unfortunately, this number was low.
U.S. Money Base Will Explode to $15–$17 Trillion
Thursday, the 15th of March 2012
With tremendous volatility in gold and silver, KWN wanted to speak with the firm that is calling for $10,000 gold to get their take on what readers should be focused on at this point.
All Your Internets Belong to US, Continued: The Bodog.com Case
Tuesday, the 13th of March 2012
And what happens to the politically incorrect, now?
Greyerz: Greek Deal to Collapse Causing Trillions to be Printed
Thursday, the 8th of March 2012
Today, Egon von Greyerz told King World News even if a Greek deal is announced, at some point it will collapse. Von Greyerz also said the consequences of the collaps will be massive.
Four Problems with Taxing the Rich
Monday, the 27th of February 2012
According to The Wall Street Journal, President Obama would like to raise taxes on the rich. Apparently, he wants you to believe that this will reduce the federal government's budget woes. There are four problems with this.
Symptoms of the Three Phases of Inflation
Monday, the 30th of January 2012
Inflation, of course, is the expansion of the money and credit supply (cause) beyond the expansion of the underlying goods in the market. In time, this expansion tends to raise prices (effect). When rising prices are perceived by most people, people begin to expect rising prices and adjust their behavior accordingly.
When will Gold Reach a New High?
Friday, the 20th of January 2012
Some investors are frustrated and a few are worried that gold seems stuck in a rut. This stall in price has happened before, of course, but since 2001, it's always eventually powered to a new high. Unless one thinks the gold bull market is over, it's natural to wonder how long might we have to wait before seeing another new high.
The Rise of the Praetorian Class
Thursday, the 19th of January 2012
Much attention has been paid to the "disappearing middle class" and the "vanishing American Dream." While the observations are laregely accurate, they are also misleading.
The U.S. Government is Bankrupt
Saturday, the 14th of January 2012
Everyone knows that the U.S. government is bankrupt and has been for many years. But I thought it might be instructive to see what its current cash-flow situation actually is.
2012 Forecasts
Friday, the 30th of December 2011
A new wave of foreclosures is on its way. This is...
Suspend Habeas Corpus and Enact Martial Law?
Monday, the 12th of December 2011
Americans seem ready to forfeit their most basic civil liberty--actually, all their civil liberties--without a whimper.
Lamenting Bailouts
Tuesday, the 29th of November 2011
Some people are lamenting the bailouts the Fed has been making because the bailouts are ultimately falling on taxpayers, but...
Governmental Influence
Friday, the 30th of September 2011
As inflation grows, so does government’s influence. Why?
Secrets of QE, Gold & Currency Wars
Tuesday, the 20th of September 2011
Along with volatility in stocks and historically low yields in bonds, investor attention has recently been drawn to currencies. This is due to the currency wars that broke out in 2010 and have expanded lately. The recent Brazilian decision to cut interest rates to halt the appreciation of the real and the Swiss decision...
The Center of Gravity Shifts Slowly
Friday, the 2nd of September 2011
To an extent not fully appreciated by the investing public, financial markets are influenced by human emotion just as much as they are by economic data, corporate earnings, and dividend yields. Of all human motivations, fear is perhaps the most powerful. When people get scared, the "fight or flight" instinct forces us to take action.
Market Demand vs. Government Demand
Monday, the 29th of August 2011
How much difference can there be?
Beyond the Tipping-point
Sunday, the 14th of August 2011
The first thing we must understand is that the economic policies of the Keynesians and central bankers are not pure economics. Rather, they are the pursuit of social objectives by economic means.
The U.S. Government's Fight against Money
Tuesday, the 26th of July 2011
To follow the travails of a $20 gold coin from 1913 to the present...