Bankocracy

As Long As You Don’t Eat, Price Inflation Is Under Control

"USDA reports: Food prices have also been rising faster than in earlier years, and food price inflation has easily outpaced price inflation for many other types of goods. Among major consumer spending categories, only prices for transportation, which include a number of energy price measures, and medical care have risen faster than food prices[...] Since 2006, when commodity prices began their rollercoaster ride, the all-items CPI has risen 14 percent while the all-food CPI is up close to 20 percent. Here's the real concern: Americans are having to spend a larger portion of their disposable income on food; something that is a reversal of decades long trend." Continue reading →

Continue ReadingAs Long As You Don’t Eat, Price Inflation Is Under Control

Fargo man charged with coin theft from UPS hub

"A Fargo man has been charged in the theft from the UPS shipping center here of more than $65,000 worth of gold and silver coins being shipped by Treasure Island Coins to a customer. The first theft, which was of 20 American Eagle gold coins worth $33,797, was on April 15. The second, of 100 American Eagle silver coins worth $2,570, was on June 6. The third was six days after that. Twenty Canadian Maple Leaf gold coins worth $28,840 were stolen. Keller told police that Pulicicchio was best friends with someone who worked at UPS." Continue reading →

Continue ReadingFargo man charged with coin theft from UPS hub

Henry Hazlitt at The New York Times

"Hazlitt was the top man in economics at the most influential newspaper in the world during the most important period of revolution in the history of the United States. This is not a story that the American Left is aware of. Hazlitt was the most prominent disciple of Ludwig von Mises in the United States during these years. He was by far the most effective voice of liberty in the country, both in his ability to write and the influence of his position. The American Right forgets this. In an era of neoconservative dominance, Hazlitt’s libertarianism is not part of an intellectual legacy that the leadership of the conservative political movement chooses to highlight." Continue reading →

Continue ReadingHenry Hazlitt at The New York Times

Diamonds, Advertising, DeBeers and Sex

"Starting in 1935 in Indiana, U.S. states started altering their laws to abolish the action for breach of promise. Women responded, by Brinig's account, by requiring a down payment from their fiancees in the form of an expensive ring—which forfeited if the fiancee terminated the engagement. Think of it as a performance bond. Brinig looked at data on diamond imports and concluded that the demand for diamonds started to rise about 1935, four years before the Ayer marketing campaign that is usually given credit for creating the demand for engagement rings. The evidence also suggested that the custom began declining once premarital sex became widely accepted." Continue reading →

Continue ReadingDiamonds, Advertising, DeBeers and Sex

IMF’s Lagarde Pleads: Fed Tapering Will Be ‘Arduous’ on Global Economy

"The head of the International Monetary Fund cautioned the world's major central banks Friday not to withdraw their unconventional support for weak economies too soon, according to numerous wire service reports. IMF Managing Director Christine Lagarde said stimulative policies are still needed in key regions, especially Europe and Japan, which have struggled with prolonged weakness. 'Even if managed well,' Lagarde said of a central bank’s exit from easy-money policies, that could still present an 'arduous obstacle course' for other countries. Lagarde said what’s needed is greater policy coordination and cooperation for the sake of the entire globe." Continue reading →

Continue ReadingIMF’s Lagarde Pleads: Fed Tapering Will Be ‘Arduous’ on Global Economy

Moody’s considers downgrading top US banks

"Moody's has warned that it could cut the credit ratings of the six biggest US banks, saying the federal government may be less likely to bail them out if they got into trouble in the future. Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo could be downgraded, the rating agency said on Thursday. The review by the second-largest rating agency in terms of market share follows a similar statement from rival Standard & Poor's in June, and comes as governments are reshaping the regulation of banking and trying to prevent a repeat of the bailouts of the credit crisis era. Lower credit ratings could raise the cost of capital for bank holding companies." Continue reading →

Continue ReadingMoody’s considers downgrading top US banks

Gold’s rebound: Why it’s believable this time

"Kelly Teoh, market strategist at IG Markets who believes the upside in gold has legs, said investors are moving into the precious metal because Asian currencies are under tremendous pressure. 'If you look at all the various asset classes, the U.S. equities are at all-time highs, Asian ex-Japan equities are lagging, commodities is the only asset class that's underperformed so I see value in that,' she added. Barclays' chief technical strategist Dhiren Sarin says gold has either already formed, or is in the process, of establishing a 'very strong base.'" Continue reading →

Continue ReadingGold’s rebound: Why it’s believable this time

Swap your gold shares for coins, ETF firm offers

"Exchange traded funds have mushroomed in recent years as a highly popular way for private investors to own gold. Real holdings of gold, stored in bank vaults, are represented by shares which trade daily on the London Stock Exchange. This makes it possible for investors to buy and sell cheaply – and in relatively small quantities. Investors can choose to receive Britannias or Sovereigns, at a cost of 4.5pc per transaction. Britannias are made from one troy ounce and minted from 22 carat gold, while Sovereigns weigh just under a quarter a troy ounce. There is no tax to pay on the switch, ETFS says." Continue reading →

Continue ReadingSwap your gold shares for coins, ETF firm offers

Argentina Just Lost Huge To A Bunch Of Hedge Fund Creditors

"For years the country has been trying to avoid paying a bunch of 'vulture' hedge fund managers that refused to take a 70% haircut on Argentine bonds like every other investor. This has resulted in some wacky news items — Paul Singer getting the government of Ghana to impound an Argentine naval ship last October, President Cristina Fernandez de Kirchner flying commercial to see the Pope so her jet isn't taken — you get the idea. Now it's (almost) come to a head. A New York Judge fully rejected Argentina's appeal of a decision made last year — a decision that would've had it pay Singer and company in full." Continue reading →

Continue ReadingArgentina Just Lost Huge To A Bunch Of Hedge Fund Creditors

Brazilian Central Bank Launches Intervention Program To Stop The Bleeding

"The new intervention program announced by the BCB Thursday sees the central bank offering $500 million of dollar swaps in the currency derivatives market on a daily basis for the rest of 2013, and $1 billion of FX spot lines on Fridays. Essentially, the BCB is taking a big short position in the U.S. dollar. The BCB is conducting the majority of the real-bolstering intervention in the derivatives market as opposed to the spot market because under the latter scenario, the central bank has to burn through the U.S. dollar component of its foreign reserves in order to prop up the currency, whereas with swaps, foreign reserves don't come into play." Continue reading →

Continue ReadingBrazilian Central Bank Launches Intervention Program To Stop The Bleeding