Today’s private-sector ADP Payrolls Report said 215,000 jobs were added in the US last month, against consensus forecasts of 173,000. Rising ahead of that number, used by some as an advance guide to Friday’s official US non-farm payrolls figures, gold had then fallen $5 per ounce before jumping 0.9% in volatile trade. Gold “[had] hit a fresh 5-month low in every session this week,” says the Reuters newswire.
Tag: monetary base
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 […]
Mr. Bernanke will get to visit his ideal world of 2% price inflation, but it will only be a whistle stop. The price inflation that lies ahead will be at least as bad as what happened in the 1970s episode, when the annual inflation rate approached 15%. The money that’s already been printed so far may be enough to produce such a 1970s-size problem.
The primary conclusion for any prudent investor should be to not be lulled in by the soothing talks of Ben, Mario and Shinzo. Granted, they may be doing their best, and doing so in good faith. Only you should not rely on their being able to succeed. Ultimately, the interest rates and inflation expectations of financial markets are fickle. They can turn on a dime. And, irrespective of all their good intentions, the good men at the central banks will not be able to control the loss of confidence in the markets.
What will the monetary system look like once a collapse occurs, which Rickards expects in the coming 3 to 5 year time frame. In his view, which he describes in great detail in his book Currency Wars, there are four possibilities: multiple reserve currencies, SDR’s, a gold standard, chaos.
We often read or hear quotes like “paper money eventually fail” and “paper money always returns to its intrinsic value which is zero.” In this article, we provide evidence why these statements are true, backed by research in which 599 different forms of paper money have been analyzed. We explain in an easy to understand way what money fundamentally is, how monetary policies of governments are affecting everyone of us and how gold is first and foremost an alternative form of money (for each and every one of us, not only for an elite). Courtesy of Vince Cate for the incredibly valuable research and David Morgan who referred us to […]
Well, Americans voted and the winner is inflation. Half our voting populace inexplicably decided to award a second term to Obama. Four more years of mind-boggling record deficits and record national debt growth! Obama’s Administration spent roughly 50% more than the government took in, which can essentially only be financed in two ways. Borrowing from foreigners and running the printing presses. The latter of course is pure inflation. And the Fed bent over backwards with its quantitative-easing campaigns to buy massive amounts of the Treasury debt Obama ran up on our children’s credit cards. It created trillions of new fiat dollars out of thin air to purchase Treasuries to finance […]
We recently wrote The Case For A Higher Gold Price Based On Monetary History, which describes the analogy between the end of Bretton Woods and a potential end of the current hegemony of the US dollar as a reserve currency. Today we present another case in monetary history: Germany in the 20th century. This case is particularly interesting because it’s often cited as a prime example of hyperinflation. The key question in this case is what the root cause was of the hyperinflation and which measure(s) brought the situation back under control. Ultimately, here at GoldSilverWorlds, we are interested in understanding if there is any link with Gold. While researching what […]