money

The Social Deterioration of Funny, Floating Money

"Most of our important relationships with other humans are monetary in nature. We have employment contracts, lending contracts, pension agreements, annuities, welfare, taxes, and, more broadly speaking, the prices paid for goods and services. The basis for all of these relationships is money. When the money becomes 'immoral,' all of these relationships also lose their moral character. Instead of investors, builders and producers, we become traders: trading assets; trading jobs; trading money for favors; trading spouses; trading our supposed 'beliefs,' for short-term gain in a zero-sum, and in fact negative-sum society." Continue reading →

Continue ReadingThe Social Deterioration of Funny, Floating Money

The Social Deterioration of Funny, Floating Money

"Most of our important relationships with other humans are monetary in nature. We have employment contracts, lending contracts, pension agreements, annuities, welfare, taxes, and, more broadly speaking, the prices paid for goods and services. The basis for all of these relationships is money. When the money becomes 'immoral,' all of these relationships also lose their moral character. Instead of investors, builders and producers, we become traders: trading assets; trading jobs; trading money for favors; trading spouses; trading our supposed 'beliefs,' for short-term gain in a zero-sum, and in fact negative-sum society." Continue reading →

Continue ReadingThe Social Deterioration of Funny, Floating Money

Putin Turns Black Gold Into Bullion as Russia Out-Buys World

"When Vladimir Putin says the U.S. is endangering the global economy by abusing its dollar monopoly, he’s not just talking. He’s betting on it. Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest gold buyer. His central bank has added 570 metric tons of the metal in the past decade, a quarter more than runner-up China, according to IMF data compiled by Bloomberg. The added gold is also almost triple the weight of the Statue of Liberty." Continue reading →

Continue ReadingPutin Turns Black Gold Into Bullion as Russia Out-Buys World

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

China Central Bank Injects Record Cash Into Money Market

"China's central bank on Tuesday injected CNY 450 billion into the money markets through open market operations, reports said. This was the largest ever single-day injection. The People's Bank of China conducts repurchase agreements and offers bills to maintain short-term liquidity. The bank has introduced more funds as liquidity tightened ahead of the Chinese Spring Festival holiday." Continue reading →

Continue ReadingChina Central Bank Injects Record Cash Into Money Market

Turkey will not halt Iran gold exports despite sanctions pressure

"U.S. officials are concerned that Turkey’s gold sales, which allow Iran to export natural gas, provides a financial lifeline to Tehran, which is largely frozen out of the global banking system by Western sanctions imposed over its nuclear programme. Turkey, Iran's biggest natural gas customer, has been paying the Islamic Republic for oil and gas imports with Turkish liras, because sanctions prevent it from paying in dollars or euros. Iranians then buy gold in Turkey, and couriers carry bullion worth millions of dollars in hand luggage to Dubai, where it can be sold for foreign currency or shipped to Iran." Continue reading →

Continue ReadingTurkey will not halt Iran gold exports despite sanctions pressure

Iranians shun own currency for Gold

"Iranians continued to purchase gold from every available centers on fears about it's economy, particularly the risk of soaring inflation and a wobbly currency. Worries about the declining buying power of the rial and doubts over the currency’s stability are the main drivers behind the flight to gold. Due to sanctions, Iranians have no choice but to invest in gold coins as they can't move their capital and invest in other countries. Treasured as a store of value, Iran’s gold coins, minted over centuries, are also culturally important. Produced by the Central Bank of Iran, a standard gold coin weighs 8.133 grams. It is also sold in smaller denominations." Continue reading →

Continue ReadingIranians shun own currency for Gold

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