Posts Tagged ‘ interest rates ’

Ben Bernanke Considers Your Happiness and Security Expendable

Mar 29th, 2012 | By | Category: Featured, Macro Economics
"Ben Bernanke the money bomber has resorted to delivering his anti-gold, pro-fiat sermons to captive audiences on US college campuses," writes Dan Denning of The Daily Reckoning Australia. That's right. Bernanke is taking his easy money message to the streets. According to Bloomberg: "Now that the weather is nice, I'm half-expecting Ben ...read more


Economics of the Timeline

Mar 14th, 2012 | By | Category: Economics, Featured, Macro Economics
Most of us hadn't thought about Davy Jones of the Monkees in many years. Suddenly, he died at the age of 66 and we were all instantly living in his world. Tributes were everywhere. His YouTube videos were slammed with hits. Praise for his life and works appeared on blogs ...read more


How Savings and Investment Increase an Economy’s Output

Feb 14th, 2011 | By | Category: Economics, Featured, Macro Economics
Everyone who has held a job and a bank account understands the potential benefit of postponing consumption today in order to enjoy greater consumption in the future. However, many people — if pressed — would explain this increase in saver’s income by an offsetting reduction in the income of a ...read more


Collateral Damage in the War on Depression

Mar 11th, 2010 | By | Category: Featured, Gold
"Just allow it...just admit it. It doesn't matter where the inflation comes from. Just let it stay..." SLASHING the Bank of England's base interest rate to an historic low of 0.5% was supposed to "rebalance" the economy...tipping it away from galloping consumption towards an export-led recovery. But all that the Pound's slump ...read more


Gaming Imaginary Money

Mar 1st, 2010 | By | Category: Featured, Morning Whiskey
Tuesday the Fed auctioned off another $37 billion in 4-week T-bills. My first thought was that this is reminiscent of "payday loans" shops, except the rate of interest is far lower when the question is, "Buddy, can you spare $37 Bil' until next month?" but the mechanics were very interesting ...read more


Debt to GDP Ratios Indicate Governments Going Bankrupt

Nov 5th, 2009 | By | Category: Featured, Macro Economics
Are the Western Welfare States (the U.S., Japan, and EU nations) really going bankrupt? Things were headed that way before the credit crisis began. The Global Financial Crisis may be becoming a sovereign debt crisis and that will worsen an already bad situation. First, let’s check out the chart below from ...read more


Inflation, Deflation and Reflation at Once

Oct 21st, 2009 | By | Category: Featured, Gold, Macro Economics
Just imagine – two things you think can't possibly happen together suddenly happen together. Say like Coca Cola re-launches New Coke, but people actually like it. Would that mean the laws of physics had been repealed? Or would you need to change what you think...? "Gold and bonds do not usually go ...read more


U.S. Dollar Retreating Against Commodities

Dec 24th, 2008 | By | Category: Featured, Gold, Macro Economics
Like a giant laxative in the world's monetary system, the Federal Reserve's quantitative easing is starting to have an effect. You wouldn't necessarily call it the desired effect. After all, we're talking about the eventual destruction of the U.S. dollar and the global monetary system upon which it's based. But ...read more


The Fed’s War on Cash

Dec 9th, 2008 | By | Category: Featured, Macro Economics, Politics
Markets are dithering their way to the end of the year. It doesn't look like much is happening. But some interesting things are going on. Pressure is building. For example, the dividend yield on the S&P 500 is 3.48%. The yield on a 30-year U.S. bond is 3.16%. According to Mark ...read more


Gold Price Dip

Jun 30th, 2008 | By | Category: Gold
It’s hard to be bullish on gold when there’s so much bad news in the world. After all, gold offers a refuge against bad times ahead. Like all good insurance, it’s best bought before trouble arrives — not during or after. And just how much worse can the news get from here? 1. ...read more