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Tag Archives: fiat currency
Here’s Why Modern Unbacked Money Derives Value from Gold
Here’s Why Modern Unbacked Money Derives Value from Gold Photo by Giorgio Trovato This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: The value behind money, why gold’s price has grudgingly responded to recent market turmoil and what higher energy prices mean for gold and […]
One Ring to Rule Us All: A Global Digital Fiat Currency
One Ring to Rule Us All: A Global Digital Fiat Currency We’ve written extensively about the “war on cash.” In a nutshell, governments would love to do away with cash in order to better track and control their citizens. There have been numerous moves closer to a cashless society in recent years, from capping ATM withdrawals to doing […]
The funny-money game
The funny-money game The sense of general unease that I detect among those I meet and discuss economics and financial matters with is increasing —with good reason. Clearly, what everyone calls inflation, rising prices or more accurately currency debasement, will lead to higher interest rates, threatening markets which are unmistakably in bubble territory. The consequences […]
After the Gold Standard, Government Grew While the Dollar Shrank
After the Gold Standard, Government Grew While the Dollar Shrank Public-domain image via Picryl.com Why ending the gold standard led to a bigger government and a smaller dollar As The Hill’s Robert P. Murphy notes, most Americans associate the end of the gold standard and the ensuing dollar erosion with Nixon and his 1971 decision to […]
The dollar’s debt trap
The dollar’s debt trap On the fiftieth anniversary of the Nixon Shock, this article explains why fiat currencies have become joined at the hip to financial asset values. And why with increasing inevitability they are about to descend into the next financial crisis together. I start by defining the currencies we use as money and […]
A Look Back at Nixon’s Infamous Monetary Policy Decision
A Look Back at Nixon’s Infamous Monetary Policy Decision Putting the World on a Paper Standard Half a century ago one of the most disastrous monetary policy decisions in US history was committed by Richard Nixon. In a television address, the president declared that the nation would no longer redeem internationally dollars for gold. Since the […]
Central Banks Are Now in the Endgame
Central Banks Are Now in the Endgame Central bankers were handed the Midas curse half a century ago. Midas turned everything that he touched into gold– even his own food. Exactly 50 years ago (15 Aug, 1971) central bankers were handed a much worse curse by Nixon. But instead of turning everything into gold, their […]
A Global Liquidity Crisis Is Underway
A Global Liquidity Crisis Is Underway I’ve been analyzing currency wars for years. In fact, I’ve written a book called Currency Wars, so I have some expertise in the subject. A new front in the currency wars is emerging, but it has not yet erupted into blatant currency manipulation. That will probably come in early 2022. […]
More Money Doesn’t Mean More Wealth
More Money Doesn’t Mean More Wealth Photo by Shane The Federal Reserve has targeted a 2% inflation rate for years, as though it’s a holy grail. As though 2% inflation was an economic panacea that would perfectly balance employment, business investment and bank lending. Recently, the Fed has loosened the reins on inflation and let it […]
The Real Digital Plot
The Real Digital Plot The move to end paper money and move toward a national cryptocurrency took a major step recently when the House Financial Services Committee task force expressed support for experiments to create a digital cryptocurrency version of the U.S. dollar. They argued that the United States had to keep pace with China, […]
The everything death spiral
The everything death spiral Inflation is back in the establishment media headlines, as prices are rising across the economy. But rather like generals fighting the last war, business and economic journalists are dusting off models of inflation last used in the early 1980s. The idea, for example, that “inflation is always a monetary phenomenon” worked well […]
Runaway Money and Overconsumption, or… the Story of Monetary Mischief in Madagascar (Episode 42 of Crazy Town)
Runaway Money and Overconsumption, or… the Story of Monetary Mischief in Madagascar (Episode 42 of Crazy Town) Way back when money consisted of iron pieces, if you wanted to buy a horse or some spices to season your horse meat, you practically had to carry an olympic weightlifting set with you. Early bankers figured out […]
Everything is On Fire
EVERYTHING IS ON FIRE “Everything is on fire” – Heraclitus (535-475 BC) What Heraclitus meant was that the world is in a constant state of flux. But the big problem in the next few years is that the world will experience a fire of a magnitude never seen before in history. I have in many […]
