Why the Government Hates Gold

Owners of Greek stocks are discovering that their equity stakes aren’t as valuable as they believed. But for every seller there is a buyer… Sellers are losing money. Buyers believe they are getting a bargain.

When Gold Is Declared Illegal…

Today, the feds don’t need to outlaw gold. It is regarded as “just another asset,” like Van Gogh paintings or ’66 Corvettes. Few people own it. Few people care – not even the feds. They are unlikely to pay much attention to it – at least, for now.

When the Going Gets Tough, the Feds Take Your Money

LONDON, England – “Cash is king.” So sayeth the Wall Street Journal, reporting on the situation in Greece. The use of cash for everyday transactions has increased 44% in the last two months. A brief update: The Greeks spoke on Sunday. “No,” they said. “We don’t want the government-spending cuts our creditors are demanding.” Then […]

Greece Is the Canary in the Coal Mine

“Greeks Line Up at Banks; ATMs Run Dry” was the headline over at the Drudge Report. Versions of it ran throughout the financial media. Greece is the canary in the coal mine for what could one day happen to your savings.

Literally, Your ATM Won’t Work…

What we use as money today is mostly credit. It exists as zeros and ones in electronic bank accounts. We never see it. Touch it. Feel it. Count it out. Or lose it behind seat cushions. Banks profit – handsomely – by creating this credit. And as long as banks have sufficient capital, they are happy to create as much credit as we are willing to pay for.

There Will Be No 25-Year Depression

Today, we have bad news and good news. The good news is that there will be no 25-year recession. Nor will there be a depression that will last the rest of our lifetimes. The bad news: It will be much worse than that. Recently, the Dow rose another 43 points. Gold seems to be working […]

Why Most Gold Bugs Are Dead Wrong

China is quietly accumulating massive amounts of gold and building alternative financial institutions such as the Asia Infrastructure Investment Bank, AIIB, and the BRICS-sponsored New Development Bank, NDB.

What it would take to return to a “healthy” economy

Yesterday’s good news was that there will be no 25-year recession. “We should be so lucky,” is the way a New Yorker might react. Because the bad news is much worse. The logic of the “long depression” is simple. Aging populations, debt, zombification – all of which slow growth. How many old people and zombies […]