money

BOE Supports Chinese Financial Domination

"Governor Zhou Xiaochuan met Governor Mervyn King today during Governor King's visit to Beijing. They agreed to facilitate discussions on the establishment of a reciprocal 3-year, renminbi (RMB)/sterling currency swap arrangement. The arrangement would be used to finance trade and direct investment between the two countries and to support domestic financial stability should market conditions warrant. They have agreed that the Bank of England and the People's Bank of China (PBoC) would work together to sign the final agreement shortly." Continue reading →

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Australia And China To Enable Direct Currency Convertibility

"The land down under is set to say goodbye to the world's 'reserve currency' in its trade dealings with the world's biggest marginal economic power, China, and will enable the direct convertibility of the Australian dollar into Chinese yuan, without US Dollar intermediation, in the process 'slashing costs for thousands of business' and also confirming speculation that China is fully intent on, little by little, chipping away at the dollar's reserve currency status until one day it no longer is. This latest development in global currency relations should come as no surprise." Continue reading →

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Don’t Sell Your Gold!

"You would be crazy to look upon the current events in the gold market and presume the golden age is over. It won’t end until America has a credible plan for dealing honestly with our country’s debt and Washington’s financial diarrhea. That isn’t likely for many more years yet. As I told attendees at the Global Currency Expo earlier this month, I don’t care if gold goes to $2,000 or $500, I don’t sell. I don’t cancel my homeowners insurance just because I don’t expect a fire at my house this year. Why would I cancel my lifestyle insurance just because some investors are bailing on gold?" Continue reading →

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Peter Schiff: Gold in the Crosshairs

"While the vast majority of economists see gold as the 'barbarous relic' described by Keynes, the sentiment has not stopped many central bankers from holding huge quantities as currency reserves. It is a curious phenomenon that the countries with the most daunting debt problems have the highest percentage of gold in their foreign exchange reserves. Many of these countries were formerly prosperous, and at various points in their histories had gold-backed currencies that required large reserves. These legacy assets now account for the bulk of their reserve wealth." Continue reading →

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Bill Bonner: Gold versus paper cash

"Maybe there really is a recovery...however weak. Maybe the feds really do have the situation under control. Maybe the central banks are right to print money. Maybe it will be clear sailing from now until Kingdom Come. And we'll be fools not to be on the boat along with all the other stockbuyers and gold-dumpers. One day, however...and we won't say 'when'...people will stop worrying about the quantity of the paper and begin worrying about the quality of it. They will find that they have plenty of paper...and that more is coming all the time. They will look in their vaults and wonder what they will do with all this paper money." Continue reading →

Continue ReadingBill Bonner: Gold versus paper cash

Bill Bonner: Turning Argentine…

"'Are you kidding?' said an Argentine friend. 'Nobody wants to save pesos. You get them. You spend them.' 'I've seen this show before,' said another friend. 'I was here in Argentina in the 1980s, when we had inflation of 1,000% per month. And I was in Moscow when the Soviet Union fell apart. Inflation hit about 800% there in 1993. I see signs of a big takeoff in inflation again. Watch out.' But for well-to-do Argentines, the quality of life here must be among the highest in the world. There are dozens of restaurants within a five-minute walk. You can sit outside. The weather is nice. And prices are cheap, if you convert your money on the black market." Continue reading →

Continue ReadingBill Bonner: Turning Argentine…

Fr33 Aid Abandons Non-Profit Tax Status in Favor of Bitcoin

"Many organizations seek non-profit recognition from the IRS in an attempt to protect themselves from asset confiscation. In April 2012, Fr33 Aid applied for this privileged status, but since then the process has been nothing but a bureaucratic nightmare. Today Fr33 Aid announced they have abandoned their IRS application and adopted bitcoin as their primary financial instrument. Fr33 Aid Treasurer, Teresa Warmke said: 'Now that there are ways for us to do banking without government involvement, we decided fulfilling (IRS demands) would not be a responsible way for Fr33 Aid to spend its money nor for our volunteers to spend their time.'" Continue reading →

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David Stockman: This Is a Giant Ponzi Scheme, It’s Just Debt on Top of More Debt

"Two days ago, former White House Budget Director in the Reagan Administration, David Stockman, dropped some financial bombs in an interview on FOX. He said the Social Security Trust Fund was 'filled with confetti.' Stockman said if the Fed was 'gone fishing' for six weeks (meaning it would stop the $85 billion a month 'open-ended' money printing), 'there would be calamity in the markets.' It seems everybody on both sides of the aisle hates his new book called 'The Great Deformation.' That tells me he’s doing something right." Continue reading →

Continue ReadingDavid Stockman: This Is a Giant Ponzi Scheme, It’s Just Debt on Top of More Debt

Fed Could End Up Paying Banks $77 Billion Annually on Excess Reserves

"The Federal Reserve could pay more than $77 billion a year in interest on the excess cash reserves it holds for commercial banks if rates follow the highest path forecast by Fed policy makers. The central bank already has paid more than $13 billion since 2008 when Congress authorized interest on reserve balances as part of financial-rescue legislation. The Fed earns interest income on its bond holdings and, after covering its operating expenses, returns the profit to the U.S. Treasury. Last year, the Fed remitted $88.4 billion. As the interest payments on reserves rise, this profit could shrink or disappear." Continue reading →

Continue ReadingFed Could End Up Paying Banks $77 Billion Annually on Excess Reserves

Bill Bonner: Is this the end for the bull market in gold?

"Is this the end for the bull market in gold? Everybody says so. And this was before gold tumbled on Friday. The fact is, the masses never got anywhere near gold. Not even close. Most people have never seen a gold coin....and few are as reckless as the aforementioned Mr. Norstog. Most are even more reckless! They'll wait gold to hit $2,000...or $3,000 before they buy. Which is why we're nowhere close to the top. Wall Street never marketed gold, deftly...or any other way. Not even in its usual greedy, heavy handed fashion. And the masses never bought it. Just the opposite. As the price of gold rose we saw ads in the paper soliciting people to SELL gold." Continue reading →

Continue ReadingBill Bonner: Is this the end for the bull market in gold?