RSSCategory: Category: Money & Currency

A Tale of Two Cities

A Tale of Two Cities

Our fictional City A might resemble some major cities in the western hemisphere. It is inhabited by regular people as well as politicians, rats, and central bankers. Currency units are digital, purchase less every year, and are created in large quantities every day. The political and financial elite control most of the government and the economy for their own benefit. Economic statistics and financial TV continually assure the people that “it’s all good.” The crashes of 2000, 2006, and 2008 caused many people to question the usual narrative.

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What Is The Link Between Gold And QE?

What Is The Link Between Gold And QE?

It is clear that “money printing” as such does not correlate in a one-to-one way with precious metals, although it is, so far, higly correlating with stocks. During all the QE phases, stocks have been performing well, while gold has only benefited from QE1 and QE2 as those periods where associated by the market with inflation. On the other hand, QE3 provided THE ultimate “risk on” trade; because the invisible hand of the almighty central bank was there stimulate endless risk. That is when gold was literally ababonded, at least among Western investors. The interesting part is that gold is today behaving as a “risk off” trade, sort of a “safe haven” trade.

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Precious Metals vs The Formidable Loss Of Purchasing Power Of The Dollar

Precious Metals vs The Formidable Loss Of Purchasing Power Of The Dollar

If you had purchased $100 in gold in 1971, it would be worth over $3,040 in today’s dollars. But if you had left your $100 in cash, you would still have only $100 in cash, which today only retains about 17% of its former value. Similar to gold, if you had purchased $100 in silver back in 1971, it would be worth over $1,200 in today’s dollars.

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Gold & Silver Show Mixed Signals While Bitcoin Shows Relative Strength

Gold & Silver Show Mixed Signals While Bitcoin Shows Relative Strength

Bitcoin’s correlation with gold has started to reverse, moving to +0.76 from a high last week of +0.88. This makes forecasting future bitcoin price movements more difficult if it is beginning to act less like gold, who’s behavior has become well-understood in relation to the US economic narrative of growth and Federal Reserve tightening. Right now, the bitcoin market remains very stochastic and open to market manipulation. There are no clear demand-side factors that we can rely on for sustained demand of the currency.

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Gold or Crushing Paper Debt

Gold or Crushing Paper Debt

Our financial world seems more unstable and more dangerous than usual. Which has been safer under difficult economic and political conditions during the past 3,000 years – gold or debt based paper?

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The Correlation Between The Gold Price and Bitcoins

The Correlation Between The Gold Price and Bitcoins

In mid-September, there seems to be a sudden change to a positive correlation between the gold and bitoin prices. Our magnitudes of change appear to become more alike in size and direction. There are 30 days of data calculated in generating the correlation. Therefore, the speed of this change suggests a significant shift in the that calculates the correlation value. What does this mean? We think that it may show that gold and bitcoin have been making large price movements together.

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Gold Price vs U.S. Debt Ratio In 2014: A Major Disconnect

Gold Price vs U.S. Debt Ratio In 2014: A Major Disconnect

Gold has tracked the expansion in US debt pretty handily. The correlation between the two is +0.86. In 2011, the rise in the gold price became overextended relative to the rise in US debt. Then it decoupled and went in the opposite direction. This is a similar trend to what occurred in the early 1980s. And if one expects that relationship to resume, then gold looks anomalously cheap relative to the rising level of US debt.

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Another Sign Of Gold Moving Back Into The Financial System

Another Sign Of Gold Moving Back Into The Financial System

Desirable or not, it’s happening. The US dollar’s days are numbered. Now, gold, with its millennia-long history is making a comeback. We’re not just talking about it as a store of wealth or a speculation, but as a regular form of currency.

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Truthseeking: How The Elites Are Running The World, The Dollar And Metals

Truthseeking: How The Elites Are Running The World, The Dollar And Metals

None of these stories are news-headline-grabbing, but they are pieces of the puzzle that, when put together, a picture of how the elites run the world suddenly appears. They are in control. No one can oppose their power. China and Russia are opposing them, right now, and their strength, backed by huge natural resources, [Russia], and massive amounts of gold, [China and Russia], engaging and encouraging other countries to build and grow from within, may very well win the day and be the catalyst to bring down the Empire of Chaos, led by the evil cabal of debt serpents, the elites.

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Dollar Gold And How It Affected Gold Since The Financial Crisis

Dollar Gold And How It Affected Gold Since The Financial Crisis

As the dollar has risen to a level not seen since the first outbreak of the euro problem in mid-2010, it would seem as if the level of dollar stress might be somewhat heightened, though it is impossible to know exactly if that is the case and to what degree. It looks as if the breakout of gold prices below the range that had been so stable since early in the year would add evidence to that theory. Gold prices under these conditions will act inversely, as funding pressures where gold is used as a substitute collateral are depressive. That would further suggest, if correct, that central banks may be back into supplying gold where they were likely absent only a few months ago.

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Some Fundamental Thoughts Behind The Tragedy Of The Euro

Some Fundamental Thoughts Behind The Tragedy Of The Euro

Jeff Deist speaks to author Philipp Bagus in the interview which is available below. We highlight some extremely interesting quotes from the interview. The discussion is a must-listen for everyone who wants to understand the fundamental issue with the Euro.

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Why Money Is Worse Than Debt

Why Money Is Worse Than Debt

Governments and Central Banks (which are like economic Siamese twins) not only print Fiat Money but on top they make the cost to print more money, issue new debt and serve past debt ridiculously low….In reality, Real Interest rates (nominal interest rate less real inflation rate) or the cost to issue more fiat money has even become negative. Propaganda must be extremely solid to keep such a mirage alive and absolute no accident may happen.

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Currencies Break, Gold Price Not

Currencies Break, Gold Price Not

With credit markets in Europe and the US taking a bit of a pause for profit-taking or reassessment, it is notable that currencies have not. The euro finally broke free of what looked like a steady range, though unfortunately to the downside. While that may be celebrated by orthodox economists in Brussels and elsewhere, it should not as such devaluation has led to no place good in the recent past. Curiously, however, the ultimate indicator of such risk, gold, has remained in its rut while these other pieces notoriously shed such contented framing.

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The Price Of Gold and The Art Of War

The Price Of Gold and The Art Of War

Only fools and the ideologically impaired believe that today’s capital markets are free. In free markets, prices are determined by supply and demand. In capital markets, supply and demand considerations are subordinated to capitalism’s increasingly dysfunctional monetary menses, i.e. credit flows, emanating from central banks. Of all markets, today’s gold markets are the least free. Based on history, we know that gold will soon again experience a meteoric rise in spite of government attempts to the contrary.

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