money

Switzerland: The Other Currency Manipulator

"Switzerland is manipulating its currency for the exact same reason China does: to help exporters gain a price advantage. And Switzerland is a big net exporter, with a current account surplus (exports minus imports) of 12 percent of GDP, compared to just 3 percent for China. Why aren’t we freaking out about Swiss currency manipulation? Probably because Switzerland’s small scale helps us understand what a manipulated currency really means: cheaper Swiss goods for U.S. consumers. With China, we somehow get this backwards." Continue reading →

Continue ReadingSwitzerland: The Other Currency Manipulator

Federal government now ruthlessly stealing thousands of dollars from small farmers’ bank accounts via ‘Bank Secrecy Act’

"If you run a family farm or other small business in which you regularly make large cash deposits at the bank, you could be in violation of a little-known federal law called the Bank Secrecy Act. Making regular cash deposits of any amount, in fact, could land you in the crosshairs of government tyrants who, according to CBN News, have already seized tens of thousands of dollars from family farmers whose only 'crime' was depositing their hard-earned cash in their bank accounts." Continue reading →

Continue ReadingFederal government now ruthlessly stealing thousands of dollars from small farmers’ bank accounts via ‘Bank Secrecy Act’

Millions affected after cyber attack on HSBC

"An unknown group launched a so-called 'denial of service' attack on Britain’s largest bank on Thursday evening, crashing web-based services for about seven hours. At its peak, HSBC was deluged with internet traffic 500 times its normal level, five times higher than the amount of traffic that hit the bank in a similar attack earlier this year. US financial group Capital 1 is also understood to have been hit by a similar denial of service attack at the same time as HSBC. Several parties have claimed responsibility for the attacks, which have been linked to Islamic groups protesting against controversial film The Innocence of Muslims." Continue reading →

Continue ReadingMillions affected after cyber attack on HSBC

“But there is no inflation!” – Misconceptions about the debasement of money

"There is no end to ‘quantitative easing’. It will have to continue forever. There is no ‘exit strategy’. The central banks are digging themselves – and all of us – an ever deeper hole. These forecasts have been accurate so far and they continue to be my forecast for the future. And here is another forecast: The present measures will over time be seconded with others that in my book I label ‘nationalization of money and credit’, that is, institutional investors will be coerced via legislation and regulation to remain invested in certain asset classes, the war on cash and the war on off-shore will continue and intensify, ultimately we will see capital controls." Continue reading →

Continue Reading“But there is no inflation!” – Misconceptions about the debasement of money

The New Trend in Gold

"Why is this happening? And what does it mean? Certainly some of the shift stems from concerns with the funds themselves. Another reason for the shift is certainly due to global economic, fiscal, and monetary concerns. As fears of systemic risk ratchet higher, it's only natural for investors to gravitate toward the safest methods for holding physical metal. Throw in events like what happened to MF Global last year, and it's easy to understand why many investors would prefer holding their own bullion over a fund. More important, what should we do as a result of this trend?" Continue reading →

Continue ReadingThe New Trend in Gold

What Ben Bernanke Will Do When the Accelerated Price Inflation Hits

"Many are familiar with the Ben Bernanke book, Essays on the Great Depression, which is a compilation of writings about the Great Depression by various economists. Fewer, however, are aware that Bernanke contributed to a work on inflation, Inflation Targeting. This second book may provide us with important clues as to how Bernanke will act if price inflation begins to accelerate. And, indeed, it appears that some time in 2013 a perfect storm of actors may develop to push price inflation much higher." Continue reading →

Continue ReadingWhat Ben Bernanke Will Do When the Accelerated Price Inflation Hits

Revisiting The ’87 Crash

"The key is to pay attention to the Fed. Volcker put the Fed into inflation mode, and big-spending Reagan only helped the inflationary cause throughout the 80's. Fast forward to 1987, and in comes 'The Maestro' Alan Greenspan as Fed Chairman. Within weeks of his taking over, the Greenspan Fed began tightening credit to stem the Volcker inflation that began with the Mexican bailout in 1982. Now, those who understand the Austrian Business Cycle Theory, know what happens once interest rates start to rise after a long period of double-digit monetary expansion. In 1987 it was a steep decline." Continue reading →

Continue ReadingRevisiting The ’87 Crash

1971: The Year That Nixon Chose Gold Over Paper

"The U.S. was now free from the shackles of that barbarous relic. It was high time for gold to get dumped into the dustbin of history. No longer were people supposed to think of it as money. And being that gold's industrial uses are minimal, its price was supposed to languish until the end of time. Also of note in 1971, Merrill Lynch went public. It was only the second brokerage firm to do so. That same year, it released its 'Merrill Lynch is bullish on America' ad during The World Series. Oh...and The Nasdaq was also launched in 1971. So as you can see, Paper Money America was about to be unleashed!" Continue reading →

Continue Reading1971: The Year That Nixon Chose Gold Over Paper

The ‘Red Pill’ Of Economics

"More and more people are starting to wonder if central banks like the Bank of England and The Fed can just 'rip up' the debt that they've bought via Quantitative Easing, and reduce the national debt of these countries with the stroke of a key. Asking this question, and thinking about the implications of it, is the equivalent of taking the 'Red Pill' of economics. If you start thinking about the possibility that the central bank could just rip up a government's debt, with few negative ramifications, then you might start thinking about government finances in a totally new way that makes you uncomfortable." Continue reading →

Continue ReadingThe ‘Red Pill’ Of Economics