Tag - Fiat

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Saturday, November 4 2017

All of the World's Money and Markets in One Visualization

All of the World's Money

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Thursday, November 2 2017

Deutsche Asks A Stunning Question: "Is This The Beginning Of The End Of Fiat Money?"

We think the final break with precious metal currency systems from the early 1970s (after centuries of adhering to such regimes) and to a fiat currency world has encouraged budget deficits, rising debts, huge credit creation, ultra loose monetary policy, global build-up of imbalances, financial deregulation and more unstable markets.

The various breaks with gold based currencies over the last century or so has correlated well with our financial shocks/crises indicator. It shows that you are more likely to see crises/shocks when we break from hard currency systems. Some of the devaluation to Gold has been mindboggling over the last 100 years.

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Government Finances and Gold

Few correlations in the financial markets ring truer and more consistently than the one between the federal debt and gold. That relationship between the two is about as fundamental as it gets because it goes to the heart of what’s wrong with the debt-based fiat money system. As the federal government borrows more and more dollars into existence and the banking system pushes those dollars through the global monetary system, it diminishes the value of all the other dollars already being held somewhere by somebody – domestic private investors, financial institutions, foreign governments and central banks, et al.

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Friday, September 29 2017

Cracks in Dollar Are Getting Larger

China just announced that any oil-exporter that accepts yuan for oil can convert the oil to gold on the Shanghai Gold Exchange and hedge the hard currency value of the gold on the Shanghai Futures Exchange.

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Thursday, September 28 2017

Macquarie Lashes Out At Dimon: "Modern Finance", Not Bitcoin, Is The Real Fraud

A good read - About cryptocurrencies and tulips

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Thursday, July 6 2017

Blinded by the Money Illusion

Gold ownership is traditionally a form of battening down the hatches against these recurring financial storms and, for the minority who adhere to it, is an effective and ever-ready defense. Nialls Ferguson, the economic philosopher, summed up what a good many were thinking in the wake of the 2008 meltdown when he said: "Those few goldbugs who always doubted the soundness of fiat money – paper currency without a metal anchor – have in large measure been vindicated. But why were the rest of us so blinded by money illusion?"

Why indeed. . and why, pray tell, are so many blinded by it now?

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Sunday, May 14 2017

Arizona Passes Bill To End Income Taxation On Gold And Silver

Ron Paul noted, “HB 2014 is a very important and timely piece of legislation. The Federal Reserve’s failure to reignite the economy with record-low interest rates since the last crash is a sign that we may soon see the dollar’s collapse. It is therefore imperative that the law protect people’s right to use alternatives to what may soon be virtually worthless Federal Reserve Notes.” I

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Wednesday, April 12 2017

Gold To Rise When Treasury Currency Report is Published

The US Treasury report on currency manipulation was ordered by Donald Trump to address the issue of countries manipulating their currencies, normally to devalue them and give an unfair advantage to their own exporters.

The report is expected to be published mid-April and it expected to have a strong impact on the currency markets.

Another market the findings may impact is that of Gold which is heavily influenced by sentiment flows as it is used as a safe-haven in times of stress.

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Tuesday, April 4 2017

Global debt hits $215 trillion in 2016, led by emerging markets

Global debt rose to 325 percent of the world's gross domestic product in 2016, totalling $215 trillion, an Institute for International Finance report released on Monday showed, boosted by the rapid growth of issuance in emerging markets.

Global debt has risen more than $70 trillion in the last decade to a record high for debt issuance, the institute said.

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Sunday, March 12 2017

Consuming our future

Only lowering our living standards will achieve sustainable growth. That’s the message from Satyajit Das, a former financier who anticipated the GFC. Debt, energy consumption, housing affordability or superannuation – it’s all based on a financial system that’s in fact a completely fictional model. This model was always doomed to fail – eventually.

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Thursday, March 9 2017

The Path to $10,000 Gold

The combined M1 money supply in the world is about 24 trillion dollars. That includes the United States, China, the Eurozone and Japan. Those four entities combine for over 70% of global GDP.

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Thursday, February 23 2017

A $500 bn pot of gold: How Boston Consulting and Google pushed Modi to end the era of cash

Boston Consulting Group (BCG), the omnipresent US-consulting company, and Google, the global data miner, issued a joint report in July 2016 on the “$500 bn Pot of Gold”, which is the Indian digital payment market. Even though the authors deny it, the report gives much reason to suspect that the authors knew that something radical was imminent from the Indian government. The report is remarkably honest about the aims of the whole exercise.

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Sunday, February 19 2017

Arizona bill would remove state tax requirement on sale of gold coins

Arguing that federal policies have made paper money “virtually worthless,” Arizona lawmakers are moving to allow residents to invest in gold coins and not have to pay state taxes on any profits they make when they sell them.

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Tuesday, January 31 2017

Ultra Easy Money: Digging the Hole Deeper?

When we had a problem in 1987 – some of you may be old enough, long enough in the business to remember that, – the answer was, ‘print the money’. And when we had a problem in 1990 and 1991, the answer was, ‘print the money’. And when we had the difficulties in South East Asia and LTCM in 1997 and 1998, the answer was, ‘print the money’. And in 2001, when the economy tanked, the answer was, ‘print the money’. I think that has given money, and the associated increase in credit and debt, a ver y important and dangerous role which it is playing out even as we speak.

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Tuesday, January 17 2017

The Further Decline in International Reserves

The world entered a credit-expansion binge in 1971. The US, as the world's central banker (liberated from the restriction of redeeming dollars for gold) entered upon a long credit expansion that fed dollars to the world in exchange for the world's products. The world responded to the incoming flow of dollars to its central banks, with a corresponding credit expansion which fostered a credit-based prosperity around the world.

The graph elaborated on the basis of Bloomberg data is telling us that the world reached the point where a general liquidation had to set in, in August 2014.

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Thursday, December 29 2016

It's The Dollar, Stupid!

We think the markets have it fundamentally wrong. US investors are anticipating a cyclical shift towards economic expansion via new tax incentives, business de-regulation and Keynesian government spending that promise to increase output, demand and asset prices. However, there is a far more influential driver of future asset prices – a structural shift that has begun but has yet to be acknowledged by economic and political authorities, and, judging by financial asset markets, by most investors. We expect weak equity markets and a strong treasury market beginning in 2017.

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Saturday, December 17 2016

Debt Nation: The Problem, the Solutions

The world is drowning in debt—$152 trillion, or 225 percent of the world’s GDP, according to the International Monetary Fund. In the United States, total debt (including government and private) exceeds $62.5 trillion, or 334 percent of GDP, according to current Federal Reserve data—that’s $196,000 for every man, woman, and child in this country.

Debt itself isn’t a problem, if it’s spent and invested wisely. But rising debt-to-GDP ratios mean the debt hasn’t led to increases in output, so it cannot be paid down. If debt is not productive, it constrains economic activity, which is one of the reasons the recovery since the Great Recession has been the weakest on record.

Historically, debt levels of this magnitude have never been paid back in real terms. They were reduced through default or inflation, with sometimes devastating results. This time around, however, creative economists say there are ways to reduce the debt burden without disrupting the economy too much.

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Wednesday, November 16 2016

Dollar at highest since 2003

The U.S. dollar index touched a near 14-year high on Wednesday

The dollar has surged in the past week, tracking Treasury yields higher on the expectation that increased U.S government spending could trigger higher inflation and force the Federal Reserve to tighten monetary policy more quickly than expected.

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Thursday, November 10 2016

India's shock bank note ban sparks cash chaos

Indians struggled to pay for basics goods like food and fuel on Wednesday and fretted about their savings, after the government withdrew 500 and 1,000 rupee notes from circulation in a bid to flush out money hidden from the tax man.

New bills of 500 and 2,000 rupees will be introduced from Nov. 10. Jaitley said it would take two to three weeks to replace the old notes, amid concerns over the availability of cash.

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Tuesday, November 8 2016

Government currency strike to push many to gold

The jewellery industry on Tuesday welcomed the government's decision to ban old Rs 500 and Rs 1,000 notes, saying gold demand will rise as people will have more faith in the precious metal than the currency notes.

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