The Euro (Double) Standard
The received wisdom in economic history places much of the blame for the Great Depression squarely on the shoulders of the gold standard. For instance, Berkley economist Barry Eichengreen states, “Far from being synonymous with stability, the gold stan …
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Monetary Equilibrium and Relative Prices
There’s long been debate on the role of an elastic money supply in achieving monetary equilibrium in a free market. Namely, should the money supply follow a 100-percent reserve requirement on banks or should banks be allowed to make use of fractional r …
READ MOREGolden Paperweights, and Other Investments
Why gold isn’t money, steak isn’t food, and you’re not really reading this… File this one under “you’ve got to be pulling on my leg:” an unsigned editorial at Nasdaq.com makes the utterly risible claims that “gold has no value except as an investment …
READ MOREDear Alan, …
Integrity called. It wants its gold back. Memo To: Rep. Ron Paul [R TX] From: Jude Wanniski Re: Greenspan and Gold Dear Ron…I didn’t watch all of Greenspan’s testimony before the House Financial Affairs Committee last Wednesday, but I was lucky enoug …
READ MORELike Bugs Looking For Windshields
Largest Central Banks Now Hold Over 15 Trillion in Fictitious Capital By Russ Winter01/27/2012 I could not help noticing that China’s imports from Japan fell 16.2pc in December. Imports from Taiwan fell 6.2pc. The strong yen strikes again: Honda decide …
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Are the Fed’s Zero-Interest Rate Policies Too Expensive?
The cost to America’s economy, by destroying savings and price signals, is too great; the power of the Fed must be rolled back, then eliminated.
READ MOREWhat Does it Really Mean to “Peg” Money?
For economics, money seems to be the exception to the rule, the thing that the market cannot provide by itself. Therefore, it is said, the economist and the government must step into the market (in the form of a central banks and regulators) to manage …
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How to Use the Dollar Index (DXY)
Remember, you still need to pull the parachute ripcord even if your altimeter is broken.
READ MOREThe Prospects for Sound Money
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?
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.
READ MOREChina to Remonetize Gold?
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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