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 | Keith Weiner - Monetary Metals |
| The Cycle of Falling Interest |
| Over the past few weeks, we have looked at the effects of falling interest rates: falling discount applied to future cash flows (and hence rising stock and bond prices), and especially falling marginal productivity of debt (MPoD). Falling MPoD means that we get less and less GDP “juice” for each new dollar of borrowing “squeeze”.
Last week, we proposed an economic law: if MPoD < 1 then the economy is unsustainable.
MPoD has been falling since at least 1950, and is currently well under 0.4 (havinTuesday, November 14, 2017 |
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| Keith Weiner - Monetary Metals |
| Against Irredeemable Paper, Report 23 July 2017 |
| Something needs to be said. We are against the existence of irredeemable paper currency, central banking and central planning, cronyism, socialized losses and privatized gains, counterfeit credit, wealth transfers and bailouts, and welfare both corporate and personal.
When we write to debunk the conspiracy theories that say manipulation is keeping gold from hitting $5,000 (one speaker here at FreedomFest claimed gold will go to $65,000), we are not trying to defend the Fed. When we discuss the fSunday, July 23, 2017 |
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| Keith Weiner - Monetary Metals |
| The Fed is Good for Gold, Report 25 September, 2016 |
| It’s almost like magic. The Fed can say something, or in the case of this Wednesday it can say nothing, and gold and especially silver get a boost of rocket fuel.
Actually, the Fed said both yes to rate hikes—in the future—and no to a rate hike now. This was good, if not for people, at least for gold. Well, if not for gold, at least the price of the metal. And especially silver. The price of silver had been up sharply on Monday, it inched up on Tuesday, and shot up another 60 cents on Wednesday,Monday, September 26, 2016 |
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| Keith Weiner - Monetary Metals |
| Silver Is in a Different World |
| Measured in gold, the price of the dollar hardly budged this week. It fell less than one tenth of a milligram, from 23.29 to 23.20mg. However, in silver terms, it’s a different story. The dollar became more valuable, rising from 1.58 to 1.61 grams.
Most people would say that gold went up $6 and silver went down 43 cents. We wonder, if they were on a sinking boat, tossing about in stormy seas, if they would say “that lighthouse went up 5 meters.”
To our point last week, what would be the utilityMonday, August 22, 2016 |
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 | Dan Popescu - GoldBroker |
| Gold and the Minsky Moment |
| In a speech in 2011 to the Empire Club of Canada and the Canadian Club of Toronto, Mark Carney, then governor of the Bank of Canada and present governor of the Bank of England, speaking of the international monetary system, said that the Minsky moment had arrived. A Minsky moment is a sudden major collapse of asset values, which is part of the credit cycle or business cycle. Such moments occur because long periods of prosperity and increasing value of investments lead to increasing speculation uMonday, April 11, 2016 |
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| Keith Weiner - Monetary Metals |
| Monetary Metals Supply and Demand Report 26 July, 2015 |
| For those who are speculating on the dollar—i.e. most people—there was good news this week. The dollar rose almost a milligram, to 28.3mg gold. That’s a big gain, and welcome news for those who keep all of their eggs in the one dollar basket, perhaps because they don’t want to risk any of it on pet rocks.
Yes, Jason Zweig at the Wall Street Journal actually said that. He couldn’t be more wrong—and yet he had a point. Wrong? Let me count the ways.
One, per his title, he compares gold to a pet rocSunday, July 26, 2015 |
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| Keith Weiner - Monetary Metals |
| The Swiss Franc Will Collapse |
| I have worked to keep this piece readable, and as brief as possible. My grave diagnosis demands the evidence and reasoning to support it. One cannot explain the collapse of this currency with the conventional view. “They will print money to infinity,” may be popular but it’s not accurate. The coming destruction has nothing to do with the quantity of money. It is a story of what happens when interest rates fall into a black hole.
Yields Have Fallen Beyond Zero
The Swiss yield curve looks like noTuesday, January 27, 2015 |
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 | Mish - Global Economic Analysis |
| Shifting Debts: The Gold Standard: Both Good and Necessary |
| In response to Reader Question on a Credit-Based Society: Can Interest Ever Be Repaid? I received an email from reader Keith Weiner at Monetary Metals.
Keith writes
Hi Mish,
I hope all is well.
I liked your reply to the reader question. I think it boils down to one thing. With fiat money, there is no extinguisher of debt. Debts are paid using dollars, but the dollar is itself a debt. The dollar is just a bite-sized piece of the Treasury bond. Paying a debt with a debt merely shifts it arouSaturday, October 4, 2014 |
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 | Captain Hook - Treasure Chest |
Monkey You  |
| What if I were to tell you not owning gold or silver makes you a monkey ? a silly monkey to global elitists and their ilk. Would you believe me? Would you be mad at me? I hope so, as this is exactly what I intended. Because you should be mad, not at me for attempting to awaken you to the need for owning gold and silver; but at the so called ?powers-that-be?, the plutocrats, bankers, bureaucrats, and politicians (the establishment), the ones that do everything in their power to dissuade you fromTuesday, March 18, 2014 |
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| Keith Weiner - Monetary Metals |
 The National Debt Cannot Be Paid Off  |
| Government spending is out of control and, while most say they want spending cuts, people oppose cuts that impact them. Among those who get government money, there’s practically an unspoken, unbreakable pact to keep the money coming. But when I say that the national debt cannot be paid off, it’s not a political forecast; it’s a statement on the flawed nature of the dollar.
Astute observers call the dollar a fiat currency. Fiat means force. It’s true that we’re forced to use the dollar (e.g. by tTuesday, March 4, 2014 |
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| Keith Weiner - Monetary Metals |
Gold Confiscation  |
| It is well known that in 1933, President Roosevelt confiscated the gold of U.S. citizens and made possession of gold illegal. He gave gold owners about $20 an ounce and when he was done, he raised the gold price to $35. The common telling of this story portrays it as a simple case of robbery. It makes people wonder if 1933 is a precedent, if the government might confiscate gold in the not-too-distant future.
I don’t think it was so simple.
Let’s look at how the monetary system worked prior to 19Thursday, September 5, 2013 |
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| Keith Weiner |
| Theory of Interest and Prices in Paper Currency Part I (Linearity) |
| Under gold in a free market, the theory of the formation of the rate of interest
is straightforward.¹ The rate varies in the narrow range between the floor
at the marginal time preference, and the ceiling at the marginal productivity.
There is no positive feedback loop that causes it to skyrocket (as it did up
until 1981) and subsequently to spiral into the black hole of zero (as it is
doing now). It is stable.
In irredeemable paper currency, it is much more complicated. In this first
Monday, May 13, 2013 |
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 | Michael J. Kosares - USA Gold |
| Print those blues away - why gold is under accumulation globally |
| Lenin was certainly right, there is no more positive, or subtler, no surer means of overturning the existing basis of society than to debauch the currency...The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million is able to diagnose." -- John Maynard Keynes Neither Keynes nor Lenin would have envisioned currency debasement on a global basis yet that is exactly where we find ourselves todaWednesday, February 6, 2013 |
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| keith weiner |
| When Gold Backwardation Becomes Permanent |
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The Root of the Problem is Debt
Worldwide, an incredible tower of debt has been under construction since 1971, when President Nixon defaulted on the gold obligations of the US government.His decree severed the redeemability of the dollar for gold and thus eliminated the extinguisher of debt.Thursday, March 15, 2012 |
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| keith weiner |
| Gold Bonds: Averting Financial Armageddon |
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After the near-collapse of the financial system in 2008, a growing number of people have come to realize that our monetary disease is terminal.It is that group to whom I address this paper.I sincerely hope that this group includes leaders in business, finance, and government.
I do not believe that my proposal herein is necessarily “realistic” (i.Tuesday, January 24, 2012 |
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| keith weiner |
| The Loan: An Exchange of Wealth for Income |
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As the title of this essay suggests, a loan is an exchange of wealth for income.Like everything else in a free market (imagine happier days of yore), it is a voluntary trade.Contrary to the endemic language of victimization, both parties regard themselves as gaining thereby, or else they would not enter into the transaction.Saturday, January 21, 2012 |
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 | Kirsty Hogg - Gold Wars |
| Antal Fekete Explains Why We Need to Go Back Onto a Gold Standard |
| Another essay, by my friend, Antal Fekete. Please take time to read the footnote at the bottom of the essay. There is still a lot of resistance to Austrian economic thinking in mainstream educational institutions (specializing in the history of economics?) Shame!
May 5, 2011
SOURCES AND REMEDIES OF FINANCIAL INSTABILITY*
Gold Bond: Life-Saver for the U.Thursday, May 19, 2011 |
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 | Antal E. Fekete - Gold University |
| Sources and Remedies of Financial Instability |
| The financial instability that first surfaced with full force in 2008 is the result of a deteriorating condition in world finance going back 40 years. Worse still, that deterioration is continuing and threatens with an historically unprecedented world-wide credit collapse.
The watershed year was 1971.Wednesday, May 18, 2011 |
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| Gold - Gold University |
| Sources and Remedies of Financial Instability |
| Tuesday, May 17, 2011 |
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| Gold university - Gold University |
| Sources and Remedies of Financial Instability |
| Tuesday, May 17, 2011 |
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