image_pdfimage_print

Trade and currency, a Brexiter’s delusion

If there is one industry Brexit has stimulated, it is the production of daft ideas for regenerating the UK economy after its exit from the EU. Many of the offerings have been from people who really like the idea of Britain becoming a European version of Singapore. But the left wing is not short of silly schemes either. This one, from businessman and self-styled economist John Mills, is one of the silliest I have seen. John Mills is chairman of John Mills Limited (JML). On his biography, he describes this as “a consumer goods company specialising in selling products requiring […]

Read More

‘The Currency Of The Apocalypse’? Doomsday Preppers Flock To Bitcoin As It Surges Past $8000

Once upon a time preppers would hoard gold and silver in anticipation of the meltdown of society, but now Bitcoin is becoming the alternative currency of choice for many in the prepping community.  On Monday, Bitcoin hit an all-time record high as it surged past $ 8,200, and it has now gone up nearly 50 percent in just the last eight days.  As I have admitted previously, one of my great regrets is not investing in Bitcoin when it first started, because we have never seen a meteoric rise quite like this.  Bitcoin hit the $ 5,000 mark for the […]

Read More

Gold, Bubbles, S&P 500, and Currency Wars

From John Rubino: “We’ll Look Back At This And Cringe” “Millions of people out there still bear the psychic scars of buying gold at $ 800/oz in 1980 or a tech stock at 1,000 times earnings in 1999 or a Miami condo for $ 1,000 per square foot in 2006. Today’s bubble will leave some similar marks. But where those previous bubbles were narrowly focused on a single asset class, this one is so broad-based that the hangover is likely to be epic in both scope and cumulative embarrassment.” BUBBLE? WHAT BUBBLE? WARS: CURRENCIES AND NUCLEAR From Timothy Alexander Guzman: […]

Read More

Gold & Silver Rebound; Jim Rickards: Dollar May Become “Local Currency of the U.S.”

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason. Coming up we’ll hear part one of an amazing two-part interview with Jim Rickards, author of Currency Wars, The New Case for Gold and The Road to Ruin. Jim shares his insights on the Fed’s supposed plan to unwind its balance sheet and what it will mean for the economy and for gold prices. He’ll discuss some potential fireworks involving the U.S. dollar as it continues losing its reserve currency status. Don’t miss a must-hear interview with Jim Rickards, coming up after this week’s market update. Beaten down gold and […]

Read More

Far too much debt and currency are created

What happens when new currency is create with few limits by central banks and commercial banks? Answer: Far too much debt and currency are created. Central Bank Balance Sheets have increased by $ 10 trillion in the last decade and $ 1 trillion YTD in 2017. What happens when an extra $ 10 trillion in central bank debt plus another $ 80 trillion or so in other global debt is created in a decade? Answer: Prices rise because each fiat currency unit purchases less. Market                               […]

Read More

Power Currency to Power Money

On a Tuesday evening in early November, Prime Minister Narendra Modi, who had been elected 2 years earlier on the slogan “Minimum Government, Maximum Governance” stunned India’s 1.3 billion people by announcing that their 1000 ($ 15) and 500 rupee notes would be “demonetized” (removed from circulation) and replaced with new 500 rupee versions by the end of the year. All they had to do was take their old notes to the banks – which were closed the next day – and deposit them – as long as there was a “legitimate” explanation for the cash – (600 million Indians […]

Read More

The currency effects of Brexit

Sterling is falling. Predictably, the financial press describe its slide as a “pounding” and gleefully tell us that sterling is the worst-performing currency after the Argentinian peso. But some people are cheering. Falling sterling is good for exports, isn’t it? So if the pound keeps falling, the UK’s large trade deficit will start to shrink, reducing the UK’s dependence on external financing and hence its vulnerability to a “sudden stop“. Sadly, it’s not that simple. Falling sterling is not an unalloyed good for exporters. The real effect is considerably more nuanced, and over the longer term, not necessarily positive. As […]

Read More

IMF Plans to Launch a New Global Currency

Some say the U.S. dollar may die 5 days hence. The Chinese renminbi will kill it. Much is being made of plans by the International Monetary Fund (IMF) to add the renminbi to its basket of strategic reserve currencies called Special Drawing Rights (SDR). The IMF will make the change on October 1. While the implications for the Federal Reserve Note, currently the U.S. dollar, as the world’s primary reserve currency may be profound over time and the importance of this even should not be overlooked, the impact is unlikely to happen overnight. The composition of the SDR may change […]

Read More

‘Currency Crash’ Drives British Pound To A 31 Year Low As Deutsche Bank Sinks To The Lowest Level Ever

The fallout from the Brexit vote continues to rock the European financial system.  On Wednesday, the British pound dropped to a fresh 31 year low as confidence in the currency continues to plummet.  At one point it had fallen as low as $ 1.2796 before rebounding a bit.  As I write this, it is still sitting at just $ 1.293.  Meanwhile, the problems for the biggest banks in Europe just continue to mount.  At one point on Wednesday Credit Suisse hit an all-time record low, and German banking giant Deutsche Bank closed the day at an all-time record closing low […]

Read More

When the Truth is Found to be Lies, Confidence in Currency Dies

In 1967 the Jefferson Airplane sang: “When the truth is found to be lies, And all the joy within you dies…” Restating this for economies and global currencies, one might say: When the truth is found to be lies, Confidence in currency dies. WHAT LIES?  Really?  There have been so many.  Here are a few examples specific to the United States (the lies in other countries are probably similar): Lyndon Johnson: In 1965, after decades of excessive government expenditures which caused rising consumer price inflation and rising gold and silver prices, Johnson removed silver from U.S. coins.  He stated, “If […]

Read More