Are you feeling optimistic yet? Are you confident that policy-makers have things under control? – If so, you must believe that we can solve any economic problem by throwing freshly printed money at it. Even problems that are evidently the result of previous periods of ‘easy money’– such as overstretched and weak banks. The ECB [...]
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“The government can always pay.” This is a statement that has no basis in fact. Any rational analysis will quickly expose it to be a fallacy. Economic theory, economic history, and plain good old horse sense can demonstrate effortlessly that this statement is an illusion. Yet, it is today a widely held and deeply cherished [...]
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“The unlimited resources” of the European Central Bank (ECB) is quickly becoming the new magic mantra in political commentary and financial market analysis, now that the bigger euro-dominos are beginning to wobble and everybody realizes that nobody has the firepower to bailout Italy, or to ‘recapitalize’ (i.e. bailout again) all the banks that lent to [...]
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Is the global ‘recovery’ faltering? Is the United States economy heading for a ‘double-dip’? These are the headlines after recent disappointing economic data releases, in particular the weak employment report last Friday. Truth be told, there never was a proper ‘recovery’, if the term is to denote a process of true healing, of fundamental betterment. [...]
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The widely-read Lex column in today’s Financial Times ran an article on gold ETFs (exchange-traded funds) that regurgitates a couple of assumptions on gold that are popular in the mainstream media and financial market circles. They are: 1) gold must be in a bubble and 2) this bubble must soon pop. As Lex put it: [...]
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Oh dear, oh dear. The mainstream media again gets things completely the wrong way round. The commentary after the ECB’s token interest rate hike of 0.25 percent on Thursday – a timid and rather cosmetic attempt at stepping back from a super easy monetary policy stance – revealed once again an astounding inability to look [...]
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If you still think of the world of global finance as the last bastion of laissez-faire capitalism, a world in which markets rule and traders, investors and bankers readily accept their verdicts – think again. You have completely missed the Socialist Revolution that has taken hold in the financial industry. In global finance the cold [...]
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Just a few quick thoughts on the developments over the past six days. For what it’s worth. Hope you find it interesting. Japan The tragic events in Japan are going to aggravate Japan’s fiscal problems. Even before the earthquake and tsunami, Japan’s fiscal position was unsustainable. It just became more unsustainable. There is not one [...]
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When I tell people that I wrote a book about the coming collapse of the paper money system they sometimes assume that I wrote about the euro and the risk of its break up. For many, the demise of the euro appears to be the only currency crisis they can imagine. This is obviously a [...]
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Recent Comments
{ Feeding a little conspiracy theory ... considering a four-year schedule, put aside the gold standard... } – Sep 27, 3:20 PM
{ Federico, apologies for the slow response. You make a very good point. Banking systems in... } – Sep 27, 3:15 PM
{ Mr Schlichter, excellent article. I agree with previous comments to a great degree as well.... } – Sep 27, 9:16 AM
{ Richard Fisher, President of the Dallas Fed, and a member of the FOMC of the... } – Sep 27, 3:50 AM
