Topic: Currency

The Prospects for Sound Money

– January 11, 2012

by Tim Kelly A silver lining of the global economic crisis is that millions of people have been awakened to the importance of sound money to a modern economy. The housing bubble and subsequent bust, excessive leveraging, reckless speculation, and the s …

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Was 2011 a Dud or Springboard For Gold?

– January 11, 2012

2011 was remarkable in many ways for the precious metals markets. Gold soared to new highs in early September, hitting at an intraday record of $1,920/ounce on the fifth. Silver screamed to within a hair of $50 on April 28. Corrections ensued, and the metals ended the year on a disappointing note for silver and an underwhelming note for gold. Equities for the sector were down, to way down for junior ventures, logging their worst annual return since 2008.

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China to Remonetize Gold?

– January 4, 2012

China’s banks use gold as legal currency A prominent economist says that China’s economic importance is growing strong and steady that the ailing US and EU economies will exchange their gold reserves for Beijing’s financial bailouts. G-20 leaders are f …

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What the Price of Gold Means

– December 20, 2011

It’s amazing how so many people don’t get gold. It’s only been 40 years since the dollar was completely severed from it’s once proud golden heritage, yet most finance and econ people are wont to consider gold just another commodity—and a not very “usef …

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GoldInSafe

Explaining Central Bank’s Gold Purchases

– December 13, 2011

A dramatic shift in gold purchases has occurred. In the third quarter of this year alone, net gold purchases by central banks amounted to 150 tons — more than double the amount of the whole yearly total of 2010.

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The other Mises and his Monetary Plan for Reconstruction

– December 9, 2011

Unlike some of his followers, Ludwig von Mises invested considerable part of his life studying policy issues with a thorough knowledge of the economic conditions and statistics of his native Austria (he even had an estimate of the number of leading ent …

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Gold bugs and Paper bugs

– December 9, 2011

At Free Banking blog, Kurt Schuller points to Ralph Benko’s reply to Roubini’s statements that “this idea of a gold standard is pushed every other day by these gold bugs [and] is not even a theory it’s a theology,” and that the return to the Gold Stand …

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The Gutenberg Solution

– December 5, 2011

The European Monetary Union is evolving like a slow-motion train-wreck these days. Just a few weeks ago, the pundits and bloggers began to ponder the possibility of the Euro failing, and now many are claiming that this is all but inevitable (the Econom …

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What Happens If We End the Fed?

– December 5, 2011

Libertarians, some Occupy supporters are among those calling for an end to the Federal Reserve

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The First International Financial Crisis: Free Banking Failure or Regulatory Failure?

– December 2, 2011

The Baring Crisis of 1890 is pointed out as the first modern international emerging financial crisis. The collapse of the banking system in Argentina came very close to triggering a financial crisis in London, the major international financial center. …

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The Lenders of Hazard

– November 25, 2011

The following passage in a note at The Economist points out to the well-known problem of moral hazard with lenders of last resort. But the moral hazard problem affects more than just the financial institutions: The European Central Bank (ECB) rejects t …

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