money

Jeffrey Tucker: Top Alternatives to Paper Money

"I’ve just left the Liberty Forum in New Hampshire as the proud owner of three types of nonpaper, nongovernmental monies. They operate in competition with the government’s dollar. Yes, these include Bitcoin, the mind-blowing digital currency that has techno-geeks, edgy global traders, and even the World Bank buzzing about its potential to finally separate money from the state. Why are people working on alternative forms of money? It’s all about escaping a 100-year-old trend. Depression, war, and deliberate debasement have left us with a dollar that is a mere shadow of its former self." Continue reading →

Continue ReadingJeffrey Tucker: Top Alternatives to Paper Money

Need Bitcoins? This ATM takes dollars and funds your account

"Zach Harvey has an ambitious plan to accelerate adoption of the Internet's favorite alternative currency: installing in thousands of bars, restaurants, and grocery stores ATMs that will let you buy Bitcoins anonymously. It's the opposite of a traditional automated teller that dispenses currency. Instead, these Bitcoin ATMs will accept dollar bills -- using the same validation mechanism as vending machines -- and instantly convert the amount to Bitcoins and deposit the result in your account." Continue reading →

Continue ReadingNeed Bitcoins? This ATM takes dollars and funds your account

Mexico’s audit office tells Bank of Mexico to verify gold held at Bank of England

"The Mexican government audit office has reprimanded the Bank of Mexico for failing to verify its supposed purchase of $4.5 billion of gold vaulted at the Bank of England. The audit office confirms a complaint last year that the Bank of Mexico had purchased only 'paper gold' at the Bank of England and had no idea of the number of bars it had supposedly purchased, nor of the purity of the bars. The audit office has recommended that the Bank of Mexico 'make a physical inspection with the counterparty that has the gold under its custody, in order to be able to verify and validate its physical wholeness and the compliance with the terms and conditions of dealing with this asset.'" Continue reading →

Continue ReadingMexico’s audit office tells Bank of Mexico to verify gold held at Bank of England

Bernanke says Fed stimulus benefits clear, budget cuts a risk

"Federal Reserve Chairman Ben Bernanke strongly defended the U.S. central bank's bond-buying stimulus before Congress on Tuesday, easing worries monetary policymakers might be getting cold feet. The Fed chairman also urged lawmakers to avoid sharp spending cuts, which he warned could [..] create a 'significant headwind' for the economic recovery. Bernanke said Fed policymakers are cognizant of potential risks from their extraordinary support for the economy, including the possibility the public loses confidence in the central bank's ability to unwind its stimulus smoothly or the potentially destabilizing effect of low rates on key markets." Continue reading →

Continue ReadingBernanke says Fed stimulus benefits clear, budget cuts a risk

FED paper warns it might not be able to undo QE

"A new paper for the US Monetary Policy Forum and published by the Fed warns that the institution's capital base could be wiped out 'several times' once borrowing costs start to rise in earnest. A mere whiff of inflation or more likely stagflation would cause a bond market rout, leaving the Fed nursing escalating losses on its $2.9 trillion holdings. This portfolio is rising by $85bn each month under QE3. The longer it goes on, the greater the risk. Exit will become much harder by 2014. What is new is that these worries are surfacing openly in Fed circles." Continue reading →

Continue ReadingFED paper warns it might not be able to undo QE

ECB bailout plan in jeopardy as Italy’s voters reject conditions

"'The result touches us all,' said Spain’s foreign minister, Jose Manuel Garcia-Margallo. 'It is a jump into the void that bodes well for nobody, neither for Italy, nor for the rest of Europe.' Almost 57pc of the Italian vote went to parties that have vowed to tear up the EU austerity script. Together they control a majority of senate seats. The Five Star movement of comedian Beppe Grillo, which won 25pc of the vote, has called for a euro referendum and has a return to the lira as one of its manifesto pledges, while ex-premier Silvio Berlusconi has threatened to pull Italy out of the currency bloc unless the EU switches to a reflation strategy." Continue reading →

Continue ReadingECB bailout plan in jeopardy as Italy’s voters reject conditions

Bank of England’s Tucker Says He’s Open to QE as BOE Stresses Flexibility

"Bank of England Deputy Governor Paul Tucker said he’s open to adding to asset purchases as policy makers stressed the central bank has the flexibility to expand stimulus if needed. Tucker was testifying alongside policy makers David Miles, Charlie Bean and Ian McCafferty at a Parliament hearing in London today on the BOE’s latest quarterly forecasts. The BOE has said it will 'look through' a period of above-target inflation to keep nurturing growth, which Bean said 'made sense' in the current environment. Tucker also raised the prospect of negative interest rates at the hearing." Continue reading →

Continue ReadingBank of England’s Tucker Says He’s Open to QE as BOE Stresses Flexibility

ECB Should Join ‘Currency War’ to Weaken Euro, France’s Montebourg Says

"The European Central Bank should weaken the euro, confronting the new 'currency war' head on to help address economic stagnation in the region, French Industry Minister Arnaud Montebourg said today. Calling for a more activist and 'political' management of the currency shared by 17 European nations, Montebourg said at a press conference in Paris that he wants 'the European Central Bank to do its job.' 'The euro is too strong and doesn’t correspond to economic fundamentals,' he said. The ECB 'should prepare to confront a new currency war in which the weakening of currencies becomes a political tool.'" Continue reading →

Continue ReadingECB Should Join ‘Currency War’ to Weaken Euro, France’s Montebourg Says

Doug Casey on G20 Economic Suicide

"The result is that you don't just get one currency devaluing, but all currencies devaluing against real assets, commodities, goods, and services. I do believe that within the foreseeable future all these paper currencies are going to be devalued to zero – in other words, they will reach their actual intrinsic values. This is extremely serious, because the productive people of the world – the ones who actually consume less than they produce and save the difference, which is what all economic growth and progress depends upon – will be wiped out. When their savings vanish, it's going to create a social and political earthquake right off the Richter scale." Continue reading →

Continue ReadingDoug Casey on G20 Economic Suicide

Australian Gov Now to Seize People’s Live Bank Accts – If ‘Inactive’

"The government will from May 31 be able to transfer all money from accounts that have not been used for three years into their own revenues. Households face losing up to $109 million from their family savings as the Federal government moves to seize cash from inactive bank accounts. After legislation was rushed through parliament, the government will from May 31 be able to transfer all money from accounts that have not been used for three years into their own revenues ... The law is forecast to raise $109 million this year as inactive accounts for three years or more are raided by Treasury. The money can be reclaimed from ASIC but the process can take months." Continue reading →

Continue ReadingAustralian Gov Now to Seize People’s Live Bank Accts – If ‘Inactive’