The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.
[Read more...]Of Fat Tails and Fashionable Gloom and Doom
February 9, 2012 By Leave a Comment
“Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse,” says a report at CNNMoney, “lawmakers from 13 states… are seeking approval from their state governments to either issue their own alternative currency or explore it as an option.”
“In the event of hyperinflation,” warns Glen Bradley, who has sponsored one such proposal in North Carolina “depression, or other economic calamity related to the breakdown of the Federal Reserve System… the state’s governmental finances and private economy will be thrown into chaos.”
[Read more...]A New Theory of Government…
December 6, 2011 By Leave a Comment
Not much to report from yesterday. Dow up 78 points. Gold bouncing around.
All eyes are on Europe. If the Europeans can pull off a save…well, we’re all saved. At least for a few weeks. Maybe through the holiday season.
The euro has been remarkably stable. It has never collapsed — despite all the talk of Europe falling apart. Apparently, people with money don’t think it is in real danger. They think it is too important to let go. They may be right. And the more people talk about the ‘end of Europe’ the more it doesn’t end. Instead of letting it go, the authorities become more and more stubborn in trying to hold it together.
[Read more...]How Governments Distort the Value of Money With or Without a Gold Standard
May 27, 2011 By Leave a Comment
Speculation is not the same as gambling. As our good friend Doug Casey, a perennial favorite at the Agora Financial Investment Symposium, likes to say, speculation is the act (some might say “art”) of “capitalizing on politically caused distortions in the marketplace.”
[Read more...]Investing in Areas With Rapid Growth Potential
May 19, 2011 By Leave a Comment
Dow up 80…oil still below $100…gold still below $1,500….
Oil has a long way to get back to its 2008 high. But it’s still 3 times what it was in 2005 and 5 times its price in 2001.
In the battle between inflation and deflation, it’s not clear to us who’s winning. Prices are rising, but in the context of a general deflationary funk. Try as they might, the feds just can’t shake the Great Correction. It leaves them struggling to loosen monetary policy to free-up the economy…and succeeding only in tightening the noose around the consumer’s neck. Here’s the AP report:
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MAS to Adjust Monetary Policy?
Good day. Mondays have always been the most-trying day for my brain cells, as it’s our largest day of risk management in World Markets. That means I have to be “on top of my game” on Mondays, and then I go home mentally exhausted. Well, I thought those types of days would be over, with our brand-spanking-new computer system. Eventually, it will be better. I know it.
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