Three Words That Could Help Fix the US Monetary System

Choppy week in the markets, wouldn’t you say? Gap down one day, gap up the next. That’s what you get when the tub is full of Fed-faked funny-money. Bigger waves…more tumult…less predictability. And a whole lotta motion sickness along the way.

Markets are always and forever in a process of price discovery, torn between demand for lower prices from buyers on one side, and the profit motive from sellers on the other. Somewhere in the middle, the two parties will come together to exchange their goods and services. In other words, they “discover” an agreeable price at which everyone finds value. This is what the free market does naturally. Low prices invite demand…driving prices higher. High prices invite competition (supply)…driving prices lower.

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Tracking Gold’s Rise Against Faux Money and Fiat Currencies

Gold $1,460…Oil $109 (Brent $123)…Dow 12,400…

Good Golly…what isn’t going up?! Commodities…equities…monies. They’re all on the march.

Yes, you read that right, Fellow Reckoner. Money is going up too. It’s going to the moon…and back. We mean real money, of course…not that flim flam fiat junk the Feds pass off as cash. We’re talking about gold. Gold and, to a lesser extent, silver. Look above at that first number again. Quite a bit higher than the $1,150 per ounce the Midas metal fetched a year ago, eh? Or the $650 it went for five years back? Or the $250 mark, where it started the new millennium.

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A World of Deficit Spending Without Any Changes

Junior Mogambo Ranger (JMR) Terry L. sent me the essay “Fiscal Armageddon in the USA” by C. Banesh, who reminds us that “Sometime between now and 2012 the US debt will equal the country’s Gross Domestic Product (GDP), the total market value of all the goods and services in our economy for an entire year.”

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Beware the Demon of Inflation

The 5-Minute Forecast came to me in an email with the subject line reading “5-Minute Forecast – Everybody Panic.”

Naturally, as a guy who is always on the verge of panic because of the fact that all the monstrously excessive amounts of money that the Federal Reserve is creating will cause inflation in prices, this affected me greatly.

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Burning the Economic Toast

Even though I have been drinking so that my speech is slurred after testing some crazy idea that I could drink away my utter horror at the death and dying of the US dollar and economy, history is, on the other hand, being made crystal clear that when a country is so idiotic as to ignore its own Constitutional requirement that money be only made of silver and gold (so as to prevent its over-issuance and thus prevent inflation, The Worst Of All Evils (TWOAE)), and then to compound that stupidity and perfidy by unbelievable over-production of the ridiculously-preferred fiat currency by the foul Federal Reserve mindlessly printing too, too much of it, for too, too long, distorting the economy into an ugly, cancerous, government-centric abomination, that country and its currency are soon toast, which is an unfortunate metaphor because I like toast.

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Elephants in the Room

Is it not heartening to politicians to seize and distribute today's wealth and promise more in future obligations knowing that erosion of the value of fiat currency will reduce the burden of government debt incurred?

Is not their public debt simply a scorecard representing the cumulative transfer of wealth mostly driven by past entitlements, for which politicians lacked the chutzpah to lay at the feet of the taxpayers?

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Euro Declines on a Sea of Bankruptcy and Paper Promises

Do you ever get the feeling that you are in some kind of weird dream, where someone is holding a pillow over your face so that you can't breathe, and you can dimly hear your children asking, “Is he dead yet, mom?? and I am thrashing around and yelling out, “No, I'm not dead, you morons!? but nobody is paying attention? Me, too!

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Moving Away From Fiat Currency Dependency

Culture, politics, and economic matters are always intertwined. The rise of relativism, secularism, and socialism will continue to shape the attitudes of central bankers, whether or not they as individuals subscribe to these modern liberal doctrines.

Pedigreed from the large institutions that they protect and manage, and ultimately exposed to a media that is also very influenced by shifting cultural values, tolerances for pain of any kind are so reduced that support for moving to any other system of money is nil.

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Gold to Fight Fiat Currencies for Useless Title

“In the land of the blind,? the old saying goes, “the one-eyed man is king.? In the world of untrustworthy investment assets, therefore, which asset deserves to be supreme global ruler?

US Treasuries? Picassos? Shares of Apple Computer? Vintage Corvettes? Beachfront Real Estate?

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