COMMENT: Like many, panicked out of market in October ’08, (lost on stocks value and currency) and did not get back in properly. Sovereign debt crises globally results in loss of confidence in own currency, but equal loss of confidence in other currencies. Although many talk about deflation, what we see is the constant rise in […]

    The Panic of 1837 was one such incident involving an unstable currency and financial system resulting in a lack of confidence in both government and the banks. An independent treasury system emerged when President Andrew Jackson transferred in 1833 government funds from the Bank of the United States to state banks. The Bank […]

The Silver Democrats came to label this financial crisis the Crime of 1873. Of course, they understood nothing with respect to the global economy and merely assumed that the could do as they desired domestically without any regard to international trends of implications. Up until the year 1873, all the dollars in the world were […]

The Federal Reserve began as a simple private sector clearing house/insurance fund, which is why the banks were the owners. Yes, the Fed was given the power to create money that was to be ELASTIC. They would create money during a bank panic to satisfy demand and then shrink it when depositors return to the […]

The Federal Reserve’s balance sheet expanded to a record $4 trillion in the week ended December 18th. The Fed balance sheet has expanded thanks to QE  buying $85 billion a month in Treasurys and mortgage related assets since last January. The Fed’s balance sheet has expanded from $891 billion in 2007 without creating inflation. This is […]

The U.S. Federal Reserve announced plans to trim its aggressive bond-buying program by $10 billion but will maintain its key interest rate at low levels for even longer than previously promised. This is precisely the way things always go in Washington. Granted, only a 12% of the analysts thought the Fed would Taper today pushing […]

Gold has made a sharp drop today as it still winds its way down. The concern that reaching a budget deal will also help the Federal Reserve to reduce its bond buying is on point. The budget agreement is another factor that goes to the heart of the gold propaganda machine that we would be […]

QUESTION: We didn’t see Quantitative Easing stimulate the economy? Was it all the money pouring out the cracks to overseas? Thanks GH ANSWER: You have to look deeper than the headlines. Yes, it sounds like a lot of money $85 billion a month should have been inflationary in a closed system. But pick up the […]

QUESTION: From reading your blog, my understanding of your view is that all relationships are in flux with respect to markets and market drivers, except for confidence.  For example, the stock/bond relationship can change over time, so stocks do not ultimately go up or down based on what bonds do but based on where confidence […]

  The Great 1906 San Francisco Earthquake 5:12 AM – April 18, 1906 QUESTION: Another thing I thought of is I wonder if your models can be used to predict major earthquakes and other similar events?  I understand there has been some good research done that has found a good correlation between them and solar sunspot […]