Commodity Trade Mantra

Posts Tagged ‘Money Supply’

Here Is Why The US Dollar Collapse Is Imminent

The list of reasons why the US dollar could collapse is getting bigger daily. Here are some factors – Reckless monetary policies by the Federal Reserve. U.S. national debt continues to increase. Other currencies like the Chinese yuan are gaining a significant amount of attention on a global level. Central banks are starting to lose trust in the US dollar as well. Read more…

Helicopter Money Tested And Failed Spectacularly, Surprising Only Economists

Imagine waking one morning to find extra cash in your account, a gift from your country’s central bank. That might sound outlandish. But the concept of so-called helicopter money is being seriously debated by economists. Helicopter money handed directly to consumers, the theory goes, would send us scurrying to the shops to spend our windfalls, boosting confidence in the economy.

Divide Global Money Supply by Global Physical Gold = Correct Gold Price

It’s true that there’s a limited quantity of gold. But there’s always enough gold to support the financial system. It’s also important to set its price correctly and there can be a debate about the proper gold price. Just take the amount of money supply in the world, the amount of physical gold in the world, divide one by the other, and there’s the gold price. It’s not complicated mathematics.

Negative Rates Confirm The Failure Of Globalization: Deutsche Bank

Negative interest rates may or may not be a thing of the past, but the confusion about their significance remains. Here is Deutsche Bank’s Dominic Konstam explaining how, among many other things including why Europe will need to “tax” cash before this final Keynesian experiment is finally over, negative rates are merely the logical failure of globalization.

Charts with more Words than Registered Gold at COMEX

COMEX has NEVER EVER gone into an active delivery month with such a small amount of registered gold available. In fact, I cannot remember a time when the registered category was ever more sparse than it is now. The amount of gold in the registered category is now roughly $80 million. This is not only scary, I cannot believe COMEX would allow these numbers to be seen.

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.”

Death Of Cognitive Dollar Dissonance & The Remonetization Of Gold

Gold, the only internationally-recognised non-national money provides the international monetary solution to an economically multipolar, globalised, competitive world. As gold again begins to circulate to settle cross-border balance of payments, it resolves the perennial floating fiat currency dilemma of ever-growing imbalances & associated ever-growing debts to finance them.

How Inflation Could Be Caused in 15 Minutes

So-called “money printing” is seen as a certain path to inflation. The Fed has printed almost $4 trillion since 2008. Yet inflation (at least as measured by official statistics) is barely noticeable. With so much money around, where’s the inflation? Increased money supply alone does not cause inflation. The money must be borrowed and spent.

The Concept Of Money And The Money Illusion

Guess what. Your money at the bank is not your money. A bank deposit is a loan to the bank, which should justify the fact banks only have a fraction of outstanding liabilities (receipts) in reserve. Let us examine this modern day practice of banking and the creation of what I call illusionary money. Simplified example: there is only book entry money, nowadays digital.

10 Things Every Economist Should Know About The Gold Standard

If there’s one monetary history topic that tends to get handled especially sloppily by monetary economists, this is it. Sure, the gold standard was hardly perfect & gold bugs themselves sometimes make silly claims about their favorite former monetary standard. But these things don’t excuse the errors many economists commit in their eagerness to find fault with that “barbarous relic.”

Not Just Debt: Government Spending & Easy Money Fuel Greek Crisis

It is not debt as such that is behind the current crisis in Greece. Large government outlays and strong increases in the money supply are being ignored in most analyses of the Greek crisis. Loose fiscal and monetary policies have been instrumental in the generation of various non-productive activities that have been squandering wealth.

Some Burning Questions For 2015

Most investors go about their job trying to identify ‘winners’. But more often than not, investing is about avoiding losers. The big question confronting investors today is how to avoid the potholes of tomorrow. To succeed, we believe that investors need to answer the following questions. The answers will drive performance for years to come.

Voices Grow Louder To End Reserve Status Of The US Dollar

“What was once a privilege is now a burden, undermining job growth, pumping up budget and trade deficits and inflating financial bubbles.” Jared Bernstein urged that, “To get the American economy on track, the government needs to drop its commitment to maintaining the dollar’s reserve-currency status.”

The Birth of a Monster - The Federal Reserve

The monster was the natural outgrowth of an increasingly troubled banking system. The Panic of 1857 was the spark that set in motion ever more destabilizing policies, caused by the lending activities of fractional-reserve banks. This original sin of the banking system concluded with the birth of a monster in 1914: The Federal Reserve.

Central Bank Credibility, The Equity Markets, And Gold

Coming out of the Great Recession, central bank credibility – their ability to “pull us out” of the Recession – was being severely questioned by investors. Thus, a good portion of investor money found its way into gold. That changed in 2011. Central bank credibility is at a peak, so gold is in the dumps.

Gold And Silver – Charts Show Power Of Elite’s Central Bankers

The best answer as to when will gold and silver rise to values that are reflective of the perverse distortion of their role as a known and accepted store of value is: Not a day before the end of the moneychangers control over the existing fiat system so deeply entrenched and accepted for its existence.

The End Of QE3, Trouble Ahead For The Bulls?

The Federal Reserve’s latest asset purchase program, QE3, is coming to an end. What was once an $85 billion a month program, one in which at its peak had been goosing the financial markets and economy at an annual rate of $1.0 trillion – and over its 27 month life will have pumped $1.7 trillion of money into the economy – is going to zero.

Federal Reserve Policies Cause Booms and Busts

Federal Reserve monetary expansion & artificially low interest rates generated wide imbalances between investment & housing borrowing on the one hand & low levels of real savings in the economy on the other. It was inevitable that reality of scarcity would finally catch up with all these mismatches between market supplies & demands.

Ten Reasons to Condemn Inflation

An un-backed expansion of the money supply causes the prices of goods and services to rise – Inflation. It allows the state to go into debt more easily and at lower interest rates than would be the case without monetary expansion. Inflation reduces the purchasing power while the price of raw materials tends to rise.

Six Myths About Money and Inflation

Its a myth that increasing aggregate demand through increasing the money supply will lead to more spending, higher employment, increased production & a higher overall standard of living. Here are 6 of the most prevalent economic myths about money & inflation that appear time and again in the mainstream media.

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