Money Supply
Revisiting The Greatest Crash In History
Submitted by Tyler Durden on 01/06/2016 09:50 -0500All we can do is point out the risks, so that people can at least prepare on an individual level. A major lesson everybody should take to heart from the Cyprus experience is this: when the next crisis strikes, do not believe any of the promises uttered by government or central bank officials. You will be lied to in the critical moments, and you could stand to lose a lot if you believe the lies.
Are We Headed For Another Bust?
Submitted by Tyler Durden on 01/05/2016 12:36 -0500Fed policymakers seem to be of the view that the almost zero federal funds rate and their massive monetary pumping has cured the economy, which now seems to be approaching a path of stable economic growth and price stability, so it is held. Yet, manipulations by the Fed could not bring the economy onto a path of stability and prosperity but, on the contrary, set in motion the menace of the boom-bust cycle. This raises the likelihood that the elimination of bubbles as a result of a tighter stance while good in the long-term for wealth generators is likely to trigger a severe economic slump in the near to medium term.
The Tragicomedy Of Self-Defeating Monetary Policy
Submitted by Tyler Durden on 01/04/2016 21:25 -0500Bill Dudley and the Federal Reserve (Fed), in their efforts to influence economic growth may have created a speculative and consumption driven environment that is crushing productivity growth. Ingenuity, not debt, made America an economic powerhouse. If we are to resume down that path we need the Fed to end their “self-defeating” policies and in its place we must demand ingenuity from them. The Fed, along with government, needs to properly incent productivity. The Fed should start this arduous task by removing excessive stimulus which will take the speculative fervor out of markets and allow asset bubbles to deflate.
The Uncomfortable Truth About The Great Boom And This "Recovery"
Submitted by Tyler Durden on 12/31/2015 08:53 -0500Despite such endless financial engineering, sales for the S&P 500 have been declining for the last three quarters. And profits have declined for the first time since the 2009 expansion. Simply put: The recovery is a mirage... It isn’t real... And it isn’t sustainable.
Falling Interest Causes Falling Profits
Submitted by Gold Standard Institute on 12/29/2015 01:45 -0500Most people assume that prices move as a result of changes in the money supply. Instead, let’s look at the effect of changes in interest.
US Economy - A Year-End Overview
Submitted by Tyler Durden on 12/28/2015 11:34 -0500It becomes ever more tempting to conclude that the timing of the Fed’s rate hike was really quite odd, even from the perspective of the planners...
Guest Post: Has There Ever Been A More Selfish Generation?
Submitted by Tyler Durden on 12/27/2015 22:20 -0500Because we squandered our opportunity to correct our own problems, our problems shall be our legacy. It’s wretched how dumb we are in our greed to have everything right now in the cheapest way possible and how willing we are to force the debts of that consumption upon our grandchildren and to pretend that won’t hurt them. We live in economic denial.
Why 'The Regime' Hates Gold
Submitted by Tyler Durden on 12/24/2015 20:10 -0500There’s only one investment we can think of that many people either love or hate reflexively, almost without regard to market performance: gold. And, to a lesser degree, silver. It’s strange that these two metals provoke such powerful psychological reactions - especially among people who dislike them. Nobody has an instinctive hatred of iron, copper, aluminum, or cobalt. The reason, of course, is that the main use of gold has always been as money. And people have strong feelings about money. From an economic viewpoint, however, money is just a medium of exchange and a store of value. Efforts to turn it into a political football invariably are signs of a hidden agenda, or perhaps a psychological aberration. So, let’s take some recent statements, assertions, and opinions that have been promulgated in the media and analyze them.
Do We Need The Fed? (Spoiler Alert: No!)
Submitted by Tyler Durden on 12/22/2015 11:21 -0500The only way to restore economic stability and avoid a major economic crisis is to end the Fed, or at least allow Americans to use alterative currencies. Some economists and policy makers claim that the way to stop the Federal Reserve from causing economic chaos is not to end the Fed but to force the Fed to adopt a “rules-based” monetary policy. Adopting rules-based monetary policy may seem like an improvement, but, because it still allows a secretive central bank to manipulate the money supply, it will still result in Fed-created booms and busts.
All Of The World’s Money And Markets In One Visualization
Submitted by Tyler Durden on 12/17/2015 21:13 -0500How much money exists in the world? Strangely enough, there are multiple answers to this question, and the amount of money that exists changes depending on how we define it. The more abstract definition of money we use, the higher the number is.
Gold & The Federal Funds Rate
Submitted by Tyler Durden on 12/17/2015 20:05 -0500It is widely assumed that the gold price must decline when the Federal Reserve is hiking interest rates. It seems logical enough: gold has no yield, so if competing investment assets such as bonds or savings deposits do offer a yield, gold will presumably be exchanged for those. There is only a slight problem with this idea. The simple assumption “Fed rate hikes equal a falling gold price” is not supported by even a shred of empirical evidence.
Money Velocity Is Crashing - Here's Why
Submitted by Tyler Durden on 12/17/2015 08:20 -0500Manipulating the PR optics (i.e. perception management) as a substitute for an open market doesn't make you omnipotent, it makes you a hubris-soaked fool.
On The Important Role Of Recessions - Austrians Had It Right
Submitted by Tyler Durden on 12/16/2015 16:30 -0500The continued misuse of capital and continued erroneous monetary policies have instigated not only the recent downturn but actually 30 years of an insidious slow moving infection that has destroyed the American legacy. “Recessions” should be embraced and utilized to clear the “excesses” that accrue in the economic system during the first half of the economic growth cycle. Trying to delay the inevitable, only makes the inevitable that much worse in the end.
10 Investor Warning Signs For 2016
Submitted by Tyler Durden on 12/15/2015 09:15 -0500Wall Street’s proclivity to create serial equity bubbles off the back of cheap credit has once again set up the middle class for disaster. The warning signs of this next correction have now clearly manifested, but are being skillfully obfuscated and trivialized by financial institutions. Nevertheless, here are ten salient warning signs that astute investors should heed as we roll into 2016.
Paper Money Versus The Gold Standard
Submitted by Tyler Durden on 12/14/2015 18:00 -0500We are living in a time that can only be considered monetary chaos. The media and the policy pundits may focus on the day-to-day zigs and zags of central bank monetary and interest rate policy, but what really needs to be asked is whether or not we should continue to leave monetary and banking policy in the discretionary hands of central banks and the monetary central planners who manage them.



