Economics

Doug Casey: Why America Should Default and You Should Live Abroad

"Reason TV's Nick Gillespie sat down with Casey to discuss why America should default on its debt, why he spends most of his time in Argentina these days, and the importance of self-reliance and free-market principles. His new book, Totally Incorrect, is a collection of conversations with Louis James that explore the ways in which government policy and centralized power threaten cultural and economic progress. In a series of engaging and wide-ranging dialogues, Casey and James talk about everything from the Great Depression to drug use to the Roman Empire." Continue reading →

Continue ReadingDoug Casey: Why America Should Default and You Should Live Abroad

U.S. gold bars and coins find new home overseas on Asian demand

"Booming demand for gold as a store of wealth among Asian investors is driving physical gold bars and coins out of the United States and into Asia. A growing number of gold vaults for affluent Asians and new precious metals investment products, particularly exchange-traded funds, have led to an exodus of gold owned privately from the United States into emerging economic powers such as China. On Friday, Commerce Department data showed U.S. exports of nonmonetary gold, which excludes central bank transactions, soared by 43 percent to $4 billion in December from the previous month." Continue reading →

Continue ReadingU.S. gold bars and coins find new home overseas on Asian demand

Paul Krugman’s Great Forecasting Failure: Argentina

"This is what Krugman wrote in May sandwiched in between my April and June warnings: 'Matt Yglesias, who just spent time in Argentina, writes about the lessons of that country’s recovery following its exit from the one-peso-one-dollar 'convertibility law'. As he says, it’s a remarkable success story, one that arguably holds lessons for the euro zone.' Some success story: out of control inflation. It will happen in the United States next, if the Federal Reserve continues to follow the mad dog printing advice of Krugman." Continue reading →

Continue ReadingPaul Krugman’s Great Forecasting Failure: Argentina

Argentina Is First Nation Censured by IMF for Economic Data

"Argentina became the first country to be censured by the International Monetary Fund for not providing accurate data on inflation and economic growth under a procedure that can end in expulsion. The declaration of censure was adopted yesterday by the IMF’s 24-member board, the Washington-based fund said in a statement. While it doesn’t have immediate effects, the decision takes the country a step closer to sanctions that include being barred from access to IMF loans." Continue reading →

Continue ReadingArgentina Is First Nation Censured by IMF for Economic Data

Up to 25% of India’s gold may be smuggled in

"An estimated quarter of the gold flowing into India is coming through irregular channels given the 'anti-gold' stance adopted by the government of one of the world's leading gold markets‚ Philip Klapwijk‚ global head of metal analytics at GFMS Thompson Reuters. 'You have a government that is clearly anti-gold in India and it is using the duty system to try hold back demand‚' he said. In January the government raised the duty on gold imports to 6% from 4%. 'What this is doing is stimulating the smuggling of gold into the country. It may be that at least a quarter of the gold coming into India is coming through unofficial channels‚' he said." Continue reading →

Continue ReadingUp to 25% of India’s gold may be smuggled in

Jim Rogers: Don’t Sell Your Gold and Silver Coins

"Demand for gold and silver coins is raging, and given the weak outlook for paper currencies, investors should hold on to these coins, says star investor Jim Rogers, chairman of Rogers Holdings. Gold coin sales hit a 19-month high last month, while silver eagle sales climbed to a record peak. 'You can’t get [silver coins]. They sell out,' Rogers tells Yahoo. 'Several mints have run out of coins, … because everybody’s worried about the future of the world.' Rogers says he 'wouldn’t rush in right now' to buy more coins, but would consider purchasing gold if prices fall further." Continue reading →

Continue ReadingJim Rogers: Don’t Sell Your Gold and Silver Coins

Absent Chavez devalues Venezuelan currency to aid gov’t finances

"Venezuela devalued its bolivar currency on Friday by 32 percent in a widely expected move that will shore up government finances after ailing President Hugo Chavez's blowout election-year spending in 2012 but will also spur galloping inflation. The move slashes the official bolivar exchange rate to 6.3 per dollar from 4.3 under currency controls Chavez created in 2003 that require importers and travelers to apply for hard currency through a state agency. Dollars on the illegal black market had for weeks been fetching nearly four times the official exchange, which economists cited as a sign an exchange rate adjustment was imminent." Continue reading →

Continue ReadingAbsent Chavez devalues Venezuelan currency to aid gov’t finances

Argentina Bans All Advertising

"Supermarkets and electronics retailers say Argentina's government has ordered them to stop advertising in the country's top newspapers, in a bid to weaken independent media companies as President Cristina Kirchner turns to increasingly unorthodox policies to prevent inflation from derailing an ailing economy. The order, confirmed by retailers and newspapers but denied by government officials, comes after retail executives say price-control czar Guillermo Moreno pressured them earlier this week to agree to freeze prices for two months. Executives say Moreno then told them to pull all newspaper sales ads in hopes this would somehow curb inflation." Continue reading →

Continue ReadingArgentina Bans All Advertising