Question: If government created even electronic money for its expenses, wouldn’ that be inflationary? Answer: Not necessarily. “inflation” is really the depreciation in the purchasing power of the currency. There is a whole other dimension that is overlooked – money supply relative to the population. DEFLATION will occur if you had a fixed money supply […]

The single greatest problem we face is that we borrow constantly with no intention of paying anything off. In fact, if we tried to pay off the debts that all nations are creating, there would be massive revolution and the rivers would turn to blood. Why did city states begin to borrow rather than simply […]

The rise in Bitcoin to $147 is clearly a phase transition. Nothing moves in that manner that is sustainable. The cyber attacks are interesting. They could be major players seeking to disrupt the business to benefit short positions. Or it could be government attacks as well. http://money.cnn.com/2013/04/04/technology/bitcoin-cyber-attacks/ The problem Bitcoin faces is the same we […]

One reader wrote: “Congratulations. Your forecast that the Dow would make new highs from the depths of 2009 has been astonishing. You have done the same each and every time since 1987. You consistently hit the ball out of the park every time. I was at your Berlin Conference. You dedicated that conference to Milton […]

This massive leak on people who have accounts outside their country put together by 160 journalists who are most likely closet Marxists, now threatens even Russians in the Government. Putin also vowed to go after Russians who had offshore accounts in his December State of the Union Address. http://www.themoscowtimes.com/business/article/offshore-investigation-threatens-to-embarrass-kremlin/478140.html This hunting down of the rich […]

Cyprus Proposal  March 27th, 2013, 5:00PM EST Cyprus Proposal   The paramount questions remain:   1)     What is the end-game solution for the Euro? 2)     How will the Euro survive after the Cyprus solution? 3)     What is to be accomplished by staying in the Euro and suffering the indignities Brussels is inflicting upon Cyprus? 4)     […]

A reader wrote: Yes. I am a “silverbug”. I never attacked you since I am a very open minded silverbug not a fanatic. But now the charts and the prices are showing your theory that in the economy, all the big money goes to the dollar  first. So what should be the primary advice for timing […]

There is no doubt rising separatist movements in virtually every country. However, the politicians are threatening members who think about leaving. So the ship is sinking and some faint distant hope may still glimmer in the distance that the people will make their voice heard in Europe and bring about change. At least the governments there are […]

The Cyprus solution was in fact discussed at G20 levels. Numerous papers are starting to surface from Europe to New Zealand where government is accepting the idea that the next time bankers blow up the world, they can just take the deposits. This is even surfacing in Canada. http://business.financialpost.com/2013/04/02/ottawas-bank-bail-in-plan-targets-certain-liabilities/ We submitted our proposal to save […]

Our phones have been in meltdown mode and sleep has been rarer than gold around here. Whatever politicians could do to screw up the world, trust me, they are diligently at work to accomplish that goal even ahead of schedule. The logic coming from the ECB, France, and Germany leaves a lot to be desired. […]