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| Bullion Vault |
| Everything Falls vs. Dollar After Fed, BTC -20 from Top, Gold Prices 'Look to Next Hike' |
| GOLD PRICES fell to new multi-week lows against all major currencies Thursday morning, dropping to $1254 per ounce for Dollar investors as all other tradable asset classes also fell following the Federal Reserve's decision to raise US interest rates despite weakening economic data.
The Fed also said it plans to start "normalizing" its balancesheet – swollen to $4.4 trillion by QE money creation and bond buying – sometime in 2017, giving a possibThursday, June 15, 2017 |
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 | Steve Saville - Speculative Investor |
| The insidious effects of monetary inflation |
| Most people with a basic grounding in economics know that increasing the supply of money leads to a fall in the purchasing power of money. However, this is usually as far as their understanding goes and explains why monetary inflation is generally not unpopular unless the cost of living happens to be rising rapidly. Monetary inflation would be far more unpopular if its other effects were widely understood.
Here are some of these other effects:
1. A greater wealth gap between rich and poor. For eTuesday, May 9, 2017 |
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| Sprott Money |
| Depression, Stagflation, Stag-Depress-Flation - Gary Christenson |
| The United States suffered through a deflationary depression in the
1930s. Stock prices crashed, currency in circulation declined, commodity
and real estate prices fell hard and human misery prevailed.
President Roosevelt revalued gold from $20.67 to $35.00 per ounce in 1933 – a substantial devaluation of the dollar. Make-work and government spending programs were implemented. War followed the depression.
Then the United States suffered through the “stagflation” of the
1970s. The economy stagThursday, February 2, 2017 |
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 | Egon von Greyerz - Matterhorn AM |
| Trump Will Grow US Debt Exponentially |
| There is a total misunderstanding of the role of gold and why it is so critical to own physical gold. Gold should not be bought or sold based on rumours or events. In connection with the US election, gold moved for totally the wrong reasons.
The whole Western world had forecast a Clinton victory. The Western media, which does no analysis but only reports what they are fed, spent no time trying to understand what the mood of the people was. It was exactly the same with Brexit. The elite in LondoMonday, November 21, 2016 |
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| Egon von Greyerz - Matterhorn AM |
| Trump Will Grow US Debt Exponentially |
| There is a total misunderstanding of the role of gold and why it is so critical to own physical gold. Gold should not be bought or sold based on rumours or events. In connection with the US election, gold moved for totally the wrong reasons.
The whole Western world had forecast a Clinton victory. The Western media, which does no analysis but only reports what they are fed, spent no time trying to understand what the mood of the people was. It was exactly the same with Brexit. The elite in LondonFriday, November 18, 2016 |
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| Graham Summer - Gains Pains & Capital |
| Another Central Banker Comes Clean... Buckle Up |
| In the last month, we’ve had two major confessions from Central Bankers.
We’ve already detailed the first, which came from the Head of the Bank of Japan, Haruhiko Kuroda here.
The second major confession from a Central Banker came from ECB President Mario Draghi. A few days ago, Draghi gave a speech in which he said:
Very low inflation complicates the adjustment process within countries, leading to higher unemployment. It delays the rebalancing process across countries, hindering those that lSunday, February 28, 2016 |
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 | Mish - Global Economic Analysis |
| Pettis on Strains in China's Banking System; Avoiding the Fall |
| In his last email of the Year Michael Pettis takes stock of the current state of China's rebalancing. It's an 18 page PDF, with no online link.
Taking Stock of China’s Transition by Michael Pettis
Special points to highlight in this issue:
While policymakers almost certainly understand that the interest rate cuts announced by the PBoC two weeks ago will slow the pace of rebalancing, the asymmetry of the change in rates was designed to minimize the adverse impact on rebalancing, and indicateFriday, December 26, 2014 |
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| Steve Saville - Speculative Investor |
 Currency devaluation: The most destructive policy of all |
| "Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in tTuesday, August 5, 2014 |
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| Mish - Global Economic Analysis |
| Amazon Charges Penny for Shipping Following France Ruling Shipping Cannot Be Free; "No Competition" |
| Under "unfair competition" laws France has decided it is far better for consumers to pay full price for goods than to receive a discount. Striking out at Amazon, France passed a law dubbed the "Anti-Amazon Law", that banned free shipping. Amazon's response was to charge a penny, but sadly it can no longer offer discounts on books.
The Wall Street Journal reports Amazon Shelves French Book Discounts.
Amazon.com Inc. ended all book discounts in France on Thursday, and began charging a token peThursday, July 10, 2014 |
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 | Andy Hoffman - Miles Franklin |
| As Inevitable as Death and Taxes |
| This is one of those days when numerous items must be covered before getting to the main topic; as frankly, I haven’t seen this many “horrible headlines” since joining Miles Franklin two-and-a-half years ago. Just how dire is the global situation, you ask? Well, put it this way; the fact that all-out war appears inevitable in one of the most politically and economically sensitive geographic hotspots – i.e., the Crimean Peninsula – is not even one of my top three priorities this morning.
For thWednesday, March 12, 2014 |
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| Mish - Global Economic Analysis |
| Greece's "Meaningless" Debt; Puppies Beg for Treats; Euro Debate Greece Isn't Having; Sisyphean Task |
| Greece's "Meaningless" Debt
The Debt-to-GDP ratio in Greece is now at 175% and rising. Recall Troika statements said anything over 120% was unsustainable.
Yet each quarter debt and debt service ratios rise. Now, a new argument has arisen: Greece does not need debt relief because its maturities and payback time are large.
Charles Wyplosz, a professor of economics at the Graduate Institute of International and Development Studies in Geneva, takes issue with that belief in a Bloomberg article TMonday, November 25, 2013 |
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| Mish - Global Economic Analysis |
| Pettis: "Abenomics Likely to Fail in Medium Term, Debt Matters" |
| Michael Pettis, at China Financial Markets, discusses Abenomics, Japan's shrinking (for now) current account surplus, debt, and interest rates in an interesting email. From Pettis ...
Abenomics in Japan is likely to put upward pressure on the national savings rate in Japan (but not necessarily on the household savings rate). This implicitly requires that over the next two or three years Japan run a higher current account surplus. In a world struggling with excess capacity and insufficient demaMonday, October 28, 2013 |
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| Mish - Global Economic Analysis |
| Dysfunctional Global Economy; Can Things Get Worse Rediscovering the Price of Money |
| Steen Jakobsen, chief economist of Saxo Bank in Denmark, says things are so bad they cannot get worse. Please consider Rediscovering the Price of Money.
I’ve been starting my speeches for some time now by saying: “I am the most optimistic I have been in almost thirty years in the market—if only because things can’t get any worse.”
Is that true, and more importantly, how do we get a fundamental change away from this extend-and-pretend which prevails not only in Europe but also the world?
HisMonday, October 21, 2013 |
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| Mish - Global Economic Analysis |
| Dark Vision for Jobs: Jobless Future Is It Different This Time |
| Moments ago, I responded to a reader James from the UK regarding automation on farms. James commented that he only need one laborer where decades ago it took 25 men to do the same job.
James asked "If we displace 90% of the workforce in the next 100 years - and we could well exceed this, given rapidly increasing levels of automation (with humanoid robots becoming commonplace in this time-frame) - how will the aggregate consumer afford to consume the average product? The level of work loss seeMonday, October 14, 2013 |
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| Mish - Global Economic Analysis |
| Strawberry Fields Forever; Is a Higher Minimum Wage Really the Answer To What |
| Japan Times reports the Latest Robot can Pick Strawberry Fields Forever
Fruits of ingenuity: Agricultural machinery maker Shibuya Seiki and the National Agriculture and Food Research Organization demonstrate a robot that can pick ripe strawberries at the annual Auto-ID and Communication Expo at the Tokyo Big Sight convention center Wednesday. | AFP-JIJI
The device, unveiled Wednesday, can pick a piece of fruit every eight seconds by using three cameras to determine which strawberries are reTuesday, October 1, 2013 |
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| Mish - Global Economic Analysis |
| Economic Idiocy: California Hikes Minimum Wage to $10/Hour by 2016 |
| In a two-step move, in the wrong direction, California signs law raising minimum wage to $10/hour by 2016
California has become the first state in the nation to commit to raising the minimum wage to $10 per hour, although the increase will take place gradually until 2016 under a bill signed into law by Democratic Governor Jerry Brown on Wednesday.
The law raises minimum pay in the most populous state from its current rate of $8 per hour to $9 by July 2014 and $10 by January 2016. The state wThursday, September 26, 2013 |
|
 | Jeffrey Nichols - Nichols on Gold |
| Golden Irony: A Quick Note on Fed Targeting |
| There was a time when price stability and well-behaved indicators of inflation would send gold prices lower. After all, many investors and savers typically buy and hold gold as an inflation hedge. With little inflation in sight, prospective buyers would not be expected to stock up on the yellow metal . . . and some might even wish to reduce their bullion holdings.
Uncharacteristically, today’s news that U.S. producer prices were flat in July sent gold prices up more than $12 an ounce in New YoFriday, August 16, 2013 |
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 | Peter Schiff - Euro Pacific Capital |
Tapering the Taper Talk  |
| As usual the Federal Reserve media reaction machine has fallen for a poorly executed head fake. It has been fooled by this move many times in the past and for its efforts it has tackled nothing but air. Yet right on cue, it took the bait once more. Somehow the takeaway from Wednesday's release of the June Fed statement and the Bernanke press conference is that the Central bank is likely to begin scaling back, or "tapering," it's $85 billion per month quantitative easing program sometime later tSunday, June 23, 2013 |
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 | Deepcaster |
| Mammoth Market Force Prospects |
| Normally, a short is when an investor thinks the price of a stock or commodity is going to fall. He wants to sell the item in advance of the fall, pocket the money, and then buy the item back after it falls in price, thus making money on the short sale.??with naked shorts, no physical metal is actually sold??Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tonMonday, April 22, 2013 |
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| Deepcaster |
| Opportunity and Risk Rockets |
| A Climacteric began in the International Economy and Markets last week. Its Ramifications have not been widely acknowledged. It provides Great Opportunity and Great Risk. Moreover, this Mega-Development signaled that a Great Opportunity Window is beginning to close. And it signaled loud and clear that The Great Danger of which we have earlier written is approaching ever nearer.The Opportunity which may well not arise again in our lifetimes. So it is important to carefully consider the implicatioSaturday, March 23, 2013 |
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