Tag: debt crisis

Gold Repricing of 1933 Was Just A Debt Default

Gold Repricing of 1933 Was Just A Debt Default

“… the United States had already defaulted on its sovereign debt in April 1933 to domestic and external creditors alike. The abrogation of the gold clause in conjunction with a subsequent 40 percent reduction in the gold content of the U.S. dollar (January 1934) also amounted to a debt haircut amounting to about 16 percent of GDP.”

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Two More IMF Papers See Savings Tax And Fiscal Austerity Coming

Two More IMF Papers See Savings Tax And Fiscal Austerity Coming

As we finally arrive in the magic year 2014, in which almost every economic and business cycle is trending down, it seems that the idea of a debt reduction through savings confiscation is gaining traction. If it would have been true that the debt crisis was contained, then there is a huge divergence with what the IMF research lab is producing. In December alone, two working papers appeared in which debt restructuring is mentioned as the most likely way to reduce the untenable debt burden.

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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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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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The Coordinated Effort To Suppress The Gold Price

| December 1, 2013 | Category: Price
The Coordinated Effort To Suppress The Gold Price

In this interview with Dimitri Speck, the gold price suppression scheme of the last 2 decades is discussed. In terms of gold’s outlook, the most likely scenario is one comparable to the current Japan: suppress deflation, stimulate slight inflation while avoiding strong inflation. In this scenario, the velocity of money will increase, savers will step out of the banking system, inflation will occur in asset and consumer prices. Gold is the best hedge in such a scenario.

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Financial Repression Starts Showing Its Ugly Head

| November 7, 2013 | Category: Economy
Financial Repression Starts Showing Its Ugly Head

2013 is proving to be a hallmark year in the ongoing saga which is called “economic recovery.” If anything has started to become blatant, it is undoubtedly the distortion in money, markets and metals.

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A Closer Look At Bank Bail-Ins And The Black Hole Of Our System

A Closer Look At Bank Bail-Ins And The Black Hole Of Our System

This is exactly what happens every time when a bubble collapses because the cause of the bubble is bank leverage! When the bubble collapses, the leverage is gone but “it exists in a negative sense”: so much more is owed than ever existed in the first place. This is the black hole of the current economic and monetary system.

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Jim Rickards’ Newest Book: The Death Of Money

Jim Rickards’ Newest Book: The Death Of Money

This article presents a first insight in the sequel to Currency Wars, the best selling book written by Jim Rickards. The new book is titled “The Death of Money, The Coming Collapse of the International Monetary System.” The book confirms the predictions made in “Currency Wars” and goes deeper in the matter by explaing how the international monetary system might collapse and how the new monetary system could look like.

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Easy Money Is Again Leading To Bubbles – Courtesy Of Central Banks

| November 3, 2013 | Category: Economy
Easy Money Is Again Leading To Bubbles – Courtesy Of Central Banks

In this week’s commentary, John Mauldin looks at two highly relevant concepts: easy money (call it QE or money printing) and economic bubbles. Obviously the two are linked to each other. Although in the minds of central bankers there is not necessarily a direct effect between both, we simple human beings all know that the inherent risks are huge. After having studied a lot of the materials, speeches, presentations by the central banking pundits, our key take-away is that central bankers believe they can “manage” the effects of their monetary policies.

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Gold And Silver Price Projection Based On US Debt Growth

| October 23, 2013 | Category: Price
Gold And Silver Price Projection Based On US Debt Growth

The correlation between the gold price, silver price and the debt growth has been amazingly accurate since 2001. It is no coincidence that the gold bull market continued on the waves of debt ceiling rises since then. Surprisingly, the correlation which lasted for 12 full years has been interrupted in the spring of this year. The disconnect is difficult to explain in the midst of an epic rush for physical gold driven by the Eastern hemisphere …  apart from the fact there is a disconnect between the needs of institutional investors (which focus on trading in the futures markets) versus the needs of ordinary people and small investors (looking to […]

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Gold, Silver, Debt – Don’t Miss These Important Charts

Gold, Silver, Debt – Don’t Miss These Important Charts

In this article, contributor Peter De Graaf shows in five charts the long and short term corrections of the gold and silver price. Precious metals remain within their rising trendline, despite the negative sentiment among investors and trader. Moreover, the seriousness of the debt situation and the impact on the dollar “paper currency” is shown in four charts.

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The Mother of Central Banks Warns Markets To Respect Independence

The Mother of Central Banks Warns Markets To Respect Independence

In a speech given earlier this week in Mexico, the General Manager of the BIS talked about the increasing pressure from the market on central banks. Even the mother of central banks is aware that the limitations of monetary policy are increasingly being questioned. The question is being asked if indeed those policies have been a “success” or rather a “failure.”

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Marc Faber: Gold Between $1200 And $1250 Is Entering A Buying Range

Marc Faber: Gold Between $1200 And $1250 Is Entering A Buying Range

“We have a strong rally form the lows at 1180 to over 1400 and now we are backing off. I think between around 1200 and 1250 it is getting into buying range. The sentiment about gold is very negative, but if you look at everything considered – the monetization of debt, the debt ceiling, which sooner or later will be increased. Both Democrats and Republicans have been big, big spenders because a lot of money flows through the government.”

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