Not all debt has the same economic effect, for like ice cream, there are at least three basic flavors: If someone borrows to create a business, this is the most productive form of debt, which expands the economy producing real jobs. Next we have the “bring it forward” debt scheme. This is a mortgage that brings future […]

In response to questions from a major U.S. city and the debt crisis, I will not mention the names for this is sensitive and highly political. I have decided to address the question, which I would normally do privately, only because a lot of municipal governments are in trouble in many countries. The same problems […]

QUESTION: Hi Marty, The reason central banks like to have inflation, is because they get to reduce the effective value of their respective national debts over time. I do not know why there is a link between inflation and interest rates, which is assumed in BB’s remarks. Is there any basis for that ? Regards […]

The decline in the VELOCITY of money is rather alarming. On the one hand, it reflects the declining liquidity within the marketplace from the rising trend of hoarding money from banks (DEFLATION), as well as the overall socialistic trend as government consumes a greater proportion of the economy GDP. Velocity = GDP / Money Supply, if the […]

The greatest exports of the United States have been McDonalds, blue jeans, rock ‘n’ roll, and of course laws that they stretch to worldwide jurisdiction. All roads lead to Washington, not Rome. Outside the USA, the FIFA arrests have sparked a huge controversy as to why the USA becomes involved in soccer when they do […]

Austria is where the Sovereign Debt Crisis began with a bank failure in 1931. Today, Austria continues to have a raging controversy over the abolition of bank secrecy. Just look at how far they are going against the citizens because of bank mismanagement, once again, and it is scaring the hell out of a lot […]

Switzerland has caved in entirely and has sealed its own demise. Everything that made Switzerland the place to be, from religion to economic freedom, is becoming lost thanks to bureaucrats. Switzerland began as a tax revolt; William Tell would be rolling over in his grave if he knew what this country has just done. Swiss […]

I have stated countless time that gold is NOT the hedge against inflation, hyperinflation, the anti-fiat antagonist against the dollar, or manipulation that keeps gold down; paper gold suppresses the price, and anything of the sort that amounts to promotions or excuses. Gold has followed the deflationary trend in commodities, if you haven’t paid attention to oil, […]

The prospect of the Federal Reserve remaining on track to raise interest rates later this year is still settling in, yet people fail to grasp that raising rates will be bullish and it will confirm the capital flows are moving into the USA. We have a serious divergence between the USA and Europe. Not only […]

QUESTION: Dear Martin, if bonds are beginning to crash in 2015.75 , is there anything that prevents central banks from printing even more money and buying bonds as many as governments needs?  Can’t they basically print unlimited amounts of money, thus preventing the crash? Best regards from Germany, AM ANSWER: You are making the logical […]