In the effort to inject interesting economic thought into the discussion at ACC we present the following video by Jeff Deist recorded at the Mises Institute. This lecture will likely challenge many of your assumptions about money.
The a new front opens up for the Federal Reserve.
Also one definitely gets the sense that the recent decline in gold is looking more and more like an opportunity to put away some real wealth at relatively low cost. This is definitely on the mind of the Chinese, and perhaps the guys in 10 gallon hats.
The reason we had the Crash in 2008 was because the Fed kept rates too low for too long. In response to the tech implosion and then the 9-11 attacks Allan Greenspan and the FOMC panicked and ended up inflating a worldwide housing boom which morphed into the disaster (to put it mildly) which is the Great Recession. There’s more to it than that but that’s basically what happened.
Consider now that Ben Bernanke (and Janet Yellen) have kept interest rates much lower for even longer than Greenspan did.
Yeah, the reckoning has been coming for a very long while. The Fed is out of control and lost. The stock market as it is is not sustainable. Many other markets are in the same boat.
Any market which reflects the wants and desires of the rich (aka those closest to newly “printed” money) is pretty much in a bubble. Art, wine, etc. Even residential real estate in places like London and New York are bubblicious.
It isn’t going to keep going. When this bubble bursts there will be serious dislocation economically and politically.
Below Marc Faber opines on Carl Icahn’s comments.
It should be noted that Texas was negotiated into the Union.
A couple of years ago I spent an evening talking economics and entrepreneurship with the developer of the new gold backed cryptocurrency The Business Insider reports on below.
I’ll say this. Anthem is darn sharp and I love that he has named his currency the Hayek. He told me about this venture when we met and I am pleased to see that his dream has become reality.
A gold backed virtual currency is just smart.
All the paper bugs out there can say whatever they want. Gold is a “barbaric relic.” It’s just a yellow rock. Yet, when the dung hits the fan, it’s the gold which gets sold. (Or in this case pawned.) As true for the degenerate gambler in Atlantic City as it is for the degenerate politicos in in Venezuela.
Many of our readers are probably aware that Townhall Finance regularly features our work. John Ransom, the editor there does an excellent job and we encourage everyone to check out the site if you have not visited. It’s a very good mix of free market thinkers from different schools. Though it is generally not “libertarian.”
That is why I was particularly pleased to see this article in Townhall. A new and broad political disposition is clearly emerging. Though many longstanding libertarians would probably take issue with some of the people calling themselves “libertarians” these days, what we see is clearly progress. In the face of a very activist government (going back long before Obama) and a renaissance of constitutional understanding (largely facilitated by the Internet) more and more people are actually embracing the concept of “live and let live.”
I’m not a fan of Charlie Munger, Warren Buffett’s right hand man. I haven’t been a fan for a long time but this statement back in 2012 really annoyed me.
Such arrogance. I’m sorry Mr. Munger but not all of us get to drink from the Fed’s fire hose of easy money. For many of us gold is a last resort. Not an investment per se, but a hedge against guys like you. Of course you know that and that’s why you said what you said.
FDR, the man who studied Mussolini, who birthed the current intrusive state, who started the drug war in earnest, who put Japanese Americans into concentration camps, who extended the Depression years longer than it needed to be and thereby contributed to the genesis of the Second World War, who tried to pack the Supreme Court, who gave away half of Europe to the Soviets at Yalta, and who confiscated the gold – the real wealth – of the American people.
What a guy. And he still has his face on the dime.
In dollar terms it’s not as dramatic. We’re moving upward but nothing terribly unusual. But check out gold priced in euros. That’s a solid move.
There was some debate a few months ago as to whether the massive drop in oil prices constituted a “black swan” event. Meaning that it was a completely unforeseen highly important event which had the potential to change economic sentiments quickly.
In light of some of the questions asked recently on monetary policy I post this relatively short speech given by Ron Paul at the Cato Institute on the subject of the Fed.
Indeed it does. Gold is a little bit of power you can put in your pocket. It is a direct and ongoing challenge to the current system of fiatism. (And by extension crony capitalism.) Central Banks can’t print gold. Gold limits the power of the Fed and its brethren. Gold limits the power of the banks which suckle at the teat of central banks. Gold limits the power of governments to indebt their peoples. Gold limits the ability of governments to wage war.
Gold encourages discipline.
Is it any wonder why gold is often called God’s money and why some people despise it so?
It was only a couple of years ago that outside of a few anarcho-capitalist and libertarian circles Bitcoin was completely unknown. Times have changed.