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Tag Archives: central banks
Crazy days for money
Crazy days for money This article anticipates the end of the fiat currency regime and argues why its replacement can only be gold and silver, most likely in the form of fiat money turned into gold substitutes. It explains why the current fashion for cryptocurrencies, led by bitcoin, are unsuited as future mediums of exchange, […]
The Foundation for Potential Price Hyperinflation is Being Laid
The Foundation for Potential Price Hyperinflation is Being Laid The Federal Reserve sure seems to have a tough time finding and reporting signs of rising inflation — especially when it’s hidden in other sectors like a lack of demand for energy. A recent example of the Fed’s “inflation blindness” comes from a speech Chairman Jerome Powell gave […]
Rabobank: You Only See How Stable A System Really Is By Pushing It To Its Limits
Rabobank: You Only See How Stable A System Really Is By Pushing It To Its Limits “Stonks” and “Burneds” We are, it is now being widely decried, in the middle of a “stonk” bubble. The Financial Times(!) is carrying an article calling on the Federal Reserve to stop its easy money; and Bloomberg(!) has strategy […]
Fed’s Near-Zero Rates Might Sound Good (Until This Happens)
Fed’s Near-Zero Rates Might Sound Good (Until This Happens) In some cases, the idea of a “near-zero interest rate” is a good thing. For example, if you qualify for 0% interest when you buy a car, you save money. But it’s much different when your retirement savings depends on getting a return on investment (ROI). In that case, near-zero […]
The Only Way Out of the Death Trap
The Only Way Out of the Death Trap I’ve said the U.S. is caught in a debt death trap. Monetary policy won’t get us out because the velocity of money, the rate at which money changes hands, is dropping. Printing more money alone will not change that. Fiscal policy won’t work either because of high […]
The U.S. Dollar Could Be Nearing Its “End Game”
The U.S. Dollar Could Be Nearing Its “End Game” From foreign countries trying to dethrone the dollar’s hegemony as global reserve currency, all the way to rising inflation weakening it… the U.S. dollar is in trouble. Pundits like Jim Rickards said (back in 2016): “The dollar won’t lose its reserve currency status overnight” — and he was right. But a new […]
This Potentially Catastrophic Inflation Surge Slipped Under the Radar (Until Now)
This Potentially Catastrophic Inflation Surge Slipped Under the Radar (Until Now) The FAO Food Price Index (FFPI) averaged 107.5 points in December 2020, up 2.3 points (2.2 percent) from November, marking the seventh month of consecutive increase. You’ve read about housing market bubbles, stock bubbles, and even credit bubbles. But the next bubble you’re about to discover could […]
Weekly Commentary: Short-Term Unsustainable
Weekly Commentary: Short-Term Unsustainable Outstanding Treasury Securities began 2008 at $6.051 TN, or 41% of GDP. Treasuries ended 2019 at $19.019 TN, or 87% of GDP. And then, in only three quarters, Treasuries surged another $3.882 TN to $22.900 TN, or 108% of GDP. We must wait a few weeks for the Fed’s Q4 Z.1 […]
Deflation: Friend or Foe?
DEFLATION: FRIEND OR FOE? Deflation is the most feared economic phenomenon of our time. The reason behind this a priori irrational fear (why should we be afraid of prices going down?) is the Great Depression. The most severe economic crisis of the 20th century was accompanied by a massive deflationary spiral that pushed prices down by 25% between 1929 […]
Building A false Economy On Hope And Printing Money
Building A false Economy On Hope And Printing Money False Economy’s End In Decay And Failure This article is in response to a piece about how it looks like massive stimulus is finally upon us and the only question is how big it will be. It would be wise to remember this is all an […]
Dear Governments, Spend as Much as You Can
Dear Governments, Spend as Much as You Can This week we heard further details about more trillions in upcoming spending and even changing monetary issuance laws (for CBDCs) worldwide. The International Monetary Fund (IMF), what critics might call a supranational leveraged buyout bank, was out this week making calls for governments worldwide to spend as […]
Economic and Monetary Outlook For 2021
ECONOMIC AND MONETARY OUTLOOK FOR 2021 The most important event in the new year is likely to be the Fed losing control of its iron grip on markets. The dollar’s declining trend is already well established against other currencies and commodities, leading to this outcome. Events in 2021 will be the consequence of a developing […]
US Dollar as “Global Reserve Currency” amid Fed’s QE and US Government Deficits: Dollar Hegemony in Decline
US Dollar as “Global Reserve Currency” amid Fed’s QE and US Government Deficits: Dollar Hegemony in Decline Other options also shaky. Central banks leery of Chinese RMB, its share still irrelevant. Euro’s share is stuck. But the yen’s share has been rising. The US dollar’s position as the dominant global reserve currency is an immensely […]
Who is Behind it Central Bankers & Can the Dollar Survive?
Who is Behind it Central Bankers & Can the Dollar Survive? QUESTION: Are the central bankers really behind this digital currency? Will that end the dollar as the reserve currency? Thank you for sharing your experience. HV ANSWER: No the central bankers are NOT the instigators. It was Christine Lagarde who when at the IMF was threatening counties they would be […]
