Archive - Aug 18, 2010 - Blog entry

Is the Mother of all bubbles about to pop?

Where The Economist “Big Mac” Index Finds Currency Value.

Money supply is declining, ZIRP and QE hasn't worked, so what's the Fed supposed to do? More of the same? This article takes a look at banks and their role in the money supply and credit process, what banks are actually doing, and why they are critical for an economic recovery. The article comes in two parts. Here is Part 1.

I am getting requests for a PDF download of the entire article, "The Dodd-Frank Wall Street Reform and Consumer Protection Act: The Triumph of Crony Capitalism." You will find the link here.

Is the real yield for the Japanese yen actually to 4.1%? The yen strength will eventually end, because while gold cannot be created out of thin air, currency can. Expect a massive quantitative easing that sends the printing presses into triple overtime.

Markets in a Flash

· The Dollar has started to weaken in the past few hours against other major currencies. China continues to shift the world’s largest FX reserves out of Dollars.

· The USD/JPY is trading very close to its lows, further weakness in the USD may see the pair making new ground.

Since world leaders and economists continually display a lack of even the most rudimentary of understanding about the unsound nature of our monetary system, I’ve decided to write them a “Monetary Policy for Dummies” to help them understand why the policies and solutions they constantly advocate amount to legalized theft that destroys the wealth of the nations.