Commodity Trade Mantra

Posts Tagged ‘Monetary System’

Negative Interest Rates: The Tax On Capital

Negative interest rates remove the positive “interest” paid to savers which is supposed to (partially) protect us from the rapacious “real inflation” running at 10+% per year. They go well beyond even this level of economic theft & criminality. Negative interest rates tax capital. How do you “stimulate” an economy by taxing capital? The inevitable result can only be the complete economic destruction.

A Gold Standard & Debt Jubilee for an Honest Money Monetary System

A gold standard handcuffs corrupt governments, forcing them to operate somewhere near a balanced budget, at all times. It handcuffs criminal central banks, restraining the speed with which they steal-by-inflation to a near-zero rate. Only alternative to Debt Slavery: Debt Jubilee – the complete renunciation of all debts. We absolutely require a gold standard but cannot till we don’t have a debt jubilee.

The Inevitability Of A Very Dramatic Inflation

Since deflation is the problem that’s staring us in the face now, governments are doing everything they can to reverse it & return to inflation, as they benefit from inflation. People can only be taxed so much before they rebel, but inflation acts as a hidden tax & most people don’t recognise it. Trouble is, hyperinflation, when it comes, comes very fast and is uncontrollable.

WTI #CrudeOil now -0.5% from +4.5%

Whatever ultimately the case, this has never been about oil prices except that they are the most visible and straddling indication between finance and economy; the money supply attempting a rebalancing in reverse of leverage that once dominated everything but no longer can fix to even slightly stable fashion. It is the representation of the structure behind the seeming cyclical.

Paper Money Versus The Gold Standard

Many critics of the gold standard consider this a rigid and inflexible “rule” about how the monetary system and the quantity of money in the society is to be determined and constrained. Yet, the advocates of the gold standard have long argued that this relative inflexibility is essential to discipline governments within the confines of a “hard budget.”

War is the Health of the State - Physical Gold and Silver can Protect You

Our current monetary system is the root cause of many evils of today. Without a monetary system that creates currency out of thin air, most of the wars that we have had and still have would simply not be financeable. By holding your wealth in gold and silver you are rejecting the current system and also protecting yourself from “financial tyranny”.

Economic Inequality and the Gold Standard

Economic inequality declined in the US from 1917 to the early 1970s when Nixon took America off of the gold standard. The trend has been for greater economic inequality ever since. Part of the answer to the problem of economic inequality is to return to an honest and sound monetary system including — but not limited to — the gold standard.

The World Will Panic Into Gold And The Price Will Go Parabolic

When a monetary system finally fails, there will be a flight to the only money that’s left in the system and that will be gold. That will be the hour in which the next great surge in the gold price occurs. You can’t predict the exact moment, but you can certainly have a pretty confident view of the direction (parabolic).

Gold is (Once Again) Money

What China and Russia have in common is they are both protecting themselves against dollar & oil price manipulation by converting their export sales into gold. They are using gold to hedge dollar exposures in Treasury securities & oil respectively. While investors may have missed this development, other central banks have not.

Gold has never been more Valuable than it is Today

We know the central banks have every motive in the world to suppress the price of gold. If you understand this risk of financial collapse has never been higher than it is today then you then you know your insurance has never been more necessary or valuable. This risk will ultimately be borne out in the failure of what we use as money.

European Debt Crisis

A revolt against previously-agreed austerity packages by any of these other states would have untold ramifications not only for the future of the Eurozone, but the euro itself. In the wake of this episode, the status of the euro as money is likely to be increasingly questioned, not just in the foreign exchanges, but by its users as well.

NIRP Officially Arrives In The US As JPM Starts Charging Fees On Deposits

NIRP is now officially in the US, which means that one after another US commercial banks will join what has already become a NIRP free-for-all across most of continental Europe where NIRP now reigns supreme & where trillions in government bonds yield negative rates. JPM is preparing to charge large institutional customers for deposits.

Repeat After Me: The US Dollar Is Not Real Money

The dollar is not real money. It represents no real work, savings or wealth. Civil servants can create it at will. As much as they see fit. And what about the saver? He must think himself a fool. For all his self-discipline…his forbearance…his willingness to forgo immediate satisfaction in return for greater returns later…what does he get? NOTHING.

Eurosystem Increasing Allocated Official Gold Reserves

The Eurosystem is surely up to something with its gold reserves. This can only be seen in advance of a reform of the international monetary system. The global economy and global finance is at the turning point in a way…So, China & Europe are embracing gold prior to the replacement of the US dollar as the world reserve currency.

Could Dollar lose its status as the Reserve Currency Status?

For a currency to have international reserve status, the related assets must be useable with minimal transaction-price impact & have relatively stable values in times of stress. Financial stability reforms can, alongside fiscal prudence, help protect the safety & liquidity of sovereign assets & can hence play a crucial role for reserve-currency status.

Jim Rickards On The Death Of Money - Interview

International monetary system has collapsed 3 times in the last 100 years – In 1914, 1939 and 1971. The next crisis will be bigger than the last one in 2008 & it will be bigger than the Fed because they already trashed their own balance sheet. Then the only balance sheet left is the IMF’s.- Jim Rickards

How Low does this go before there’s a Currency Crisis?

We have somehow been conned into believing that the path to prosperity is for the grand wizards of the financial system to conjure paper currency out of thin air. Yet this notion of ‘money backed by nothing’ is an absurd fantasy that has failed every single time it has ever been tried before in history.

Bitcoin Exchange Goes “Dark” - $350 Million Theft Claim

Mt. Gox, once the world’s largest and most popular bitcoin exchange, has gone “dark” or offline & also halted cash withdrawals. The shutdown of Mt. Gox comes after months in which the currency’s price soared and it attracted increased attention from investors and speculators.

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