Bank Run

Exposing The ECB's Illusory Independence

"...the pretense of independence serves as a fig leaf for interventions that are not only politically driven, but that are also utterly inconsistent with the principles of liberal democracy."

Barclays Warns "Grexit" May Return This Summer While Tsipras "Demonizes" IMF

"We continue to think Greece has the potential to return to the headlines, and we do not rule out the prospect of “Grexit” returning... We note the more fragile European political environment (Dutch referendum, UK’s EU referendum, likely snap elections in Spain, key elections in France and Germany in 2017) compared to previous episodes, and the possibility that the increased noise around Greece could potentially influence the UK referendum on EU membership. Furthermore, the ongoing migration crisis in which Greece plays a central role is exacerbating tensions at both domestic and European levels."

Was There A Run On The Bank? JPM Caps Some ATM Withdrawals

Under the auspices of "protecting clients from criminal activity," JPMorgan Chase has decided to impose capital controls on . As WSJ reports, following the bank's ATM modification to enable $100-bills to be dispensed with no limit, some customers started pulling out tens of thousands of dollars at a time. This apparent bank run has prompted Jamie Dimon to cap ATM withdrawals at $1,000 per card daily for non-customers. Of course, we are sure this is just another 'storm in a teacup' as why would anyone complain about a bank withholding people's money when they are assuredly tax evaders, terrorists, drug dealers and human traffickers.

The Path To The Final Crisis

We cannot be sure what shape the next crisis will take, although it seems likely that it will be yet another “deflation scare”, mainly caused by falling asset prices. However, we do know what the last crisis of the current system will look like. It will entail a crumbling of the public’s faith in fiat money and the institutions that issue and administer it.

Gold Money's picture

It is our mission to rebut any mainstream article that spreads misinformation about gold and/or shows a gross misunderstanding of monetary history. Matt O’Brien argues in the Washington Post that a “gold-backed dollar would have been a much more volatile one” and that “[gold]…has nothing to do with the price of food or housing.“ We show in a few simple charts why Matt O’Brien’s arguments are misguided, misinformed and just plain wrong.

Holiday Market Summary

With all of Europe and the U.S. closed for holiday, what little market action there was overnight came out of Asia, where China once again was engaged in its last hour "National Team" market manipulation, which saved the SHCOMP from a red close after the now traditional last hour buying spree pushed the Shanghai Composite from red on the session an hour before close to near the highs of the day.

"Everything Changes At Zero" - Investors "Obligated" To Fight The Fed

The financial world is growing increasingly crazy-looking. What is alarming is that central banks are brandishing these new tools without any viable evidence or theory that they will even work. This itself presupposes that central banks have any idea of what “work” might even mean in this brave new context. It used to be said, ‘Don’t fight the Fed’. Now as investors, if we want to protect our capital, we are all obligated to fight the Fed, and its international cousins, with whatever we have.

Ferrari Crashes

Another "no brainer" bites the dust. Ferrari is halted limit down in Milan trading and is crashing in US trading - now down over 40% from its "successful" IPO day highs...

Citi On Why Negative Rates Are Like Potato Chips: "No One Can Have Just One"

"Experience in other countries that have entered into this territory should sober you up on the likely economic and inflation impact. No country that has gone into negative rates has experienced major shifts in its growth and inflation profile – minor, yes; major, no. As a consequence every dip into negative rates has been followed by additional moves."

"Pandora's Box Is Open": Why Japan May Have Started A 'Silent Bank Run'

"... if the negative interest rate continues for longer or goes deeper, commercial banks may have to set negative interest rates on deposits, which would expand not only the tax on commercial banks, but also on depositors (households and companies). This could lead to a ‘silent bank run’ via a shift of deposits to cash (banknotes), which in turn damages the sound banking system by enlarging the leakage of funds from the credit creation mechanism in the banking system."