RSSCategory: Category: Money & Currency

Bitcoin, Gold, and the Quantity of Money

Bitcoin, Gold, and the Quantity of  Money

Only gold serves as the objective measure of value necessary to act as the numeraire. It is no coincidence that the quantity of monetary gold is not fixed, but has elegant mechanisms to expand and contract in response to changing market demand.

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Inflation vs Deflation – Monetary Tectonics In 25 Amazing Charts

Inflation vs Deflation – Monetary Tectonics In 25 Amazing Charts

How is gold impacted in this inflation vs deflation war? The key conclusion of the research is that, due to the fractional reserve banking system and the dynamics of the ‘monetary tectonics’, inflationary and deflationary phases will alternate in the foreseeable future. Gold, being a monetary asset in the view of Austrian economics, tends to rise in inflationary periods and decline during times of disinflation. The key take-away for investors is to position themselves accordingly and consider price declines as buying opportunities for the coming inflationary period.

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Signs of A Cracking Dollar Hegemony

Signs of A Cracking Dollar Hegemony

The most important evolution in the last months and weeks is the increased effort from China to back away from the dollar. They are doing so in two different ways. First, the yuan is being used as the currency of trade in an increasing number of trading agreements. Second, the tensions between the US and Saudi Arabia are increasing. The latter is important as it is the cornerstone of the petrodollar system.

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Expect A Paper Currency Collapse

Expect A Paper Currency Collapse

here is a difference between money and money substitutes. We use these fiat currencies today, those are currencies backed by nothing except government promises, as a money substitute. They are all based on credit. The problem with fiat currencies today is that payment risk is growing and growing because of fiscal policies by governments (which are creating too much debt) and the monetary policies from central banks around the world (who are turning this debt into currency).

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People Bank Of China Promotes Participation In Gold Market

People Bank Of China Promotes Participation In Gold Market

The Chinese central bank People Bank Of China concludes their latest monetary policy report with several actions, one of which being: “The diversity of participants on the gold market will be promoted,

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100 Years Of Monetary Socialism Is Enough!

100 Years Of Monetary Socialism Is Enough!

Most of the readers are familiar with the dire consequences of having a central bank, therefore I will also not repeat the obvious and tell you how much the purchasing power of the Dollar has decreased nor talk about how our current monetary system leads to artificial booms and busts or fosters malinvestment. What I will be talking about is why I believe that, regardless of the above mentioned, the existence of a central bank is wrong and why it not only resembles but is pure socialism.

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Money, Gold And Liberty – What Has Changed In 2013?

Money, Gold And Liberty – What Has Changed In 2013?

The last year has been an interesting year in many respects, especially for precious metals. We saw strange fluctuations in the gold price, mainly because of the paper market, and also “creative” ideas by governments on how to control their citizens and their wealth.

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The Dollar And Gold In The New Great Monetary Game

The Dollar And Gold In The New Great Monetary Game

It’s fairly obvious that China is moving ahead with its plan to dismantle the dollar’s dominance in world trade and internationalise the Yuan. However, it would hasten this process if the Chinese make good on recent comments from the People Bank Of China.

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The Federal Reserve Is Leveraged Roughly 70 Times

The Federal Reserve Is Leveraged Roughly 70 Times

The Fed has $55 billion of total capital and assets of $3.843 trillion, which means that the Federal Reserve is leveraged roughly 70x.

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Western Governments Try Everything To Preserve Their Fiat Currencies

Western Governments Try Everything To Preserve Their Fiat Currencies

While major Western banks have been found guilty of one transgression after another, I don’t believe that any Chinese bank participated in these devious schemes. And, when it comes to gold, I will follow the Chinese and not the US. I will take advantage of these lower prices to buy more and not to sell. I also believe that the price of gold has made its lows for the year.

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The Most Misunderstood Threat Of Economic Implosion

The Most Misunderstood Threat Of Economic Implosion

With a global competition in currency debasements, with limitless monetary stimulus, with decreasing effects of monetary expansion, with a conscious infringement of the monetary rules, it should be clear that there is hardly a way back for our leaders. Given this outlook, we believe it is a matter of “when,” not “if” the next collapse occurs.

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Bank Bail-ins Are Now Regulated By Eurozone Finance Ministers

Bank Bail-ins Are Now Regulated By Eurozone Finance Ministers

The Irish Times writes today that EU finance ministers have agreed a set of rules that could be used to wind up insolvent banks. In future, banks creditors – including potentially savers – would suffer losses should European financial institutions collapse. That comes after Irish Minister for Finance Michael Noonan said “Bail-in is now the rule” back in June of this year.

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Current Euro Cycle Unlikely To Move Higher

| December 2, 2013 | Category: Money & Currency
Current Euro Cycle Unlikely To Move Higher

Since it’s extremely unlikely the Euro is in Week 3 of a new Investor Cycle, our expectations must be for the Euro to fall immediately from this point. The Daily Cycle does not support further upside here, as a Left Translated DC is necessary for a drop into a mild Euro ICL.

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Currency Suicide: Japan Experiencing The Ugly Effects Of Its Own Policy

| December 1, 2013 | Category: Money & Currency
Currency Suicide: Japan Experiencing The Ugly Effects Of Its Own Policy

One of the consequences of Japan’s currency debasement is now starting to show its ugly head: the cheaper Yen may be intended to stimulate exports but it simultaneously makes imports more expensive.

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