I can't say gold was much better. Between debasing all the way to lying about money being backed by non-existent gold the gold standard was also fraught with problems. The issue is government and complete transparency is the issue. We have seen throughout history not only does government do what is in its own best interest and those that control it, it also tends to lie when backed in a corner.
Basically, if even a fiat system is created where government can only print and use 1-2% increases in the total money supply a year and nothing more and can not borrow, thereby issuing more money the foundations of the money supply would be solid and not based on debt. The issue is that this would never happen and even if it did, enough transparency would have to be given to prevent government from lying and printing even more money.
The allure of the gold standard really is the concept of debtless money, something that we don't have today and which fuels the drive for more debt and thus more money. The more an economy digs itself into debt the better off it is is a really cracked theory.
Argentina As A Blueprint For Greece [View article]
A orderly debt reduction seems to be in the works, but even a 60% haircut will probably not do it. Greece is still failing to realize the biggest issue is not their current debt, its their perpetual and unsustainable deficit spending by their government.
The socialist feeding fest on the private sector and people of Greece must end to set things right. The working class is overburdened with public service and entitlement payments (1/3 of the people are getting it) and massive taxes. This just goes to show that there is no long term replacement for capitalism. End the socialized nightmare!
Why 2012 Should Be Better Than 2011 [View article]
#1 reason: Presidential election. The party in power does everything it can to flood the economy with money and provide stimulus regardless of the deficit. Barring that they push for the Federal Reserve to ease regardless of inflation.
Most Of Our Problem, Still, Is That We Have A Dead Battery: Felix Salmon Is Wrong Edition [View article]
Right on. The engine is broken, not just the tires need pumping up and a push start. Propping up failed banks and doling out money to favorite pet projects to friends like Haliburton and Solyndra will only make us more broke and hurt us more. In fact we need a collapse to make us realize we need technical expertise and blue collar jobs. We can't live with 80% of the working population shuffling papers to pay for the 40% who don't work.
What Needs To Be Done To Get Out Of The Mess [View article]
I agree that the first step is to block any spending increases. The US won't do that. Greece won't do that because its public service unions unions which equal over 25% of the population want raises and increased benefits every year. Other countries won't do it for similar purposes.
The simple fact is until public employees are cut and their benefits cut they will slowly destroy the economy of the people they serve. Thus it becomes more and more apparent that a vast majority of them serve themselves not the public not because of their own behavior but the behavior of the unions that are nothing but self interested institutions that in the end don't even care that much about their members as the dues they rake in.
Can The Markets Take A Strong U.S. Dollar? [View article]
The US can't handle a stronger dollar which undoubtedly means more easing. If it doesn't it will be holding a mass deficit bag full of unemployment and recession.
Debunking Dividend Agnostic Assumptions: Here's What Really Makes Income Investors Tick [View article]
Index funds are just a convenient way for government to fleece you with capital gains before you sell as well as a way for fund managers to pay themselves a hefty margin and then trading fees for what can be done by computers and a low paid nerd.
Deflation Is a Long Term Threat for the Stock Market [View article]
All commodities are going up and even the Swiss are trying to devalue their currency. I don't think this reflects deflation. There is a bull run to gold and a dash to devalue fiat money to 0 to tease consumers into believing that everything is going to be ok. The author is right if money stays constant deflation occurs, but all governments know they can print and print eternally and have big incentives to do so (as in trying to stay in power. At least until hyper inflation takes hold).
When it comes to debasement we are only getting started. Bernanke would have debased more if only interest rates weren't already floored to zirp. All he needs is another economic shock to justify QE III. I bet he's hoping for a bank meltdown in France. QE = power to the Federal reserve and money to the banks. You don't have to be a conspiracy theorist to know that is in the best interest of the TBTF bankers who reap all the rewards to such debasement. I agree, gold and silver are just about your only sure protection against this. QE is always done with weak growth and a stock market swoon which drags down most other commodities too.
I would tend to agree with your long term analysis, however short term the market expects a Helicopter Ben and so far he has never failed to show up and shower money on banks and his favorite financial companies. Thus it has less to do with economics and more to do with how he can help the TBTF oligopoly of bankers and Investment banks. I expect more money dumping soon if not today.
At least money is still running to US Treasuries. When that all creases and it only runs to AAA rated government bonds and precious metals the United States goose is cooked. Even so, world governments will undoubtedly begin to accumulate a bit of their own gold horde should the US further destroy its reserve currency status. I can't see any way they won't given their extremely loose policy for decades now. To do so would be to accept an even harder landing and step down from its global pre-eminence status.
Bernanke's statement they can accommodate by lowering zirp from the nominal 0.25% to 0 is ridiculous as is the belief they will ever sterilize their past QE. It is a given that the Federal Reserve will want to continue QE forever and destroy the US the same way as Japan (except add inflation too).
QE only gives the Federal Reserve more power, makes people depend on them and government spending rather than the private sector economy, and makes everyone feel like the economic upturn (if there is one) is temporary because of QE and government stimulus. It is a path towards economic oblivion.
On Central Banking [View article]
Basically, if even a fiat system is created where government can only print and use 1-2% increases in the total money supply a year and nothing more and can not borrow, thereby issuing more money the foundations of the money supply would be solid and not based on debt. The issue is that this would never happen and even if it did, enough transparency would have to be given to prevent government from lying and printing even more money.
The allure of the gold standard really is the concept of debtless money, something that we don't have today and which fuels the drive for more debt and thus more money. The more an economy digs itself into debt the better off it is is a really cracked theory.
Argentina As A Blueprint For Greece [View article]
The socialist feeding fest on the private sector and people of Greece must end to set things right. The working class is overburdened with public service and entitlement payments (1/3 of the people are getting it) and massive taxes. This just goes to show that there is no long term replacement for capitalism. End the socialized nightmare!
Why 2012 Should Be Better Than 2011 [View article]
Most Of Our Problem, Still, Is That We Have A Dead Battery: Felix Salmon Is Wrong Edition [View article]
What Needs To Be Done To Get Out Of The Mess [View article]
The simple fact is until public employees are cut and their benefits cut they will slowly destroy the economy of the people they serve. Thus it becomes more and more apparent that a vast majority of them serve themselves not the public not because of their own behavior but the behavior of the unions that are nothing but self interested institutions that in the end don't even care that much about their members as the dues they rake in.
Can The Markets Take A Strong U.S. Dollar? [View article]
Debunking Dividend Agnostic Assumptions: Here's What Really Makes Income Investors Tick [View article]
Deflation Is a Long Term Threat for the Stock Market [View article]
A Meltdown of Confidence [View article]
Why We Don't Need a QE3 [View article]
The Equity Slaughter Continues [View article]
Rating for Godot [View article]
Rating for Godot [View article]
Rating for Godot [View article]
Parsing Bernanke [View article]
QE only gives the Federal Reserve more power, makes people depend on them and government spending rather than the private sector economy, and makes everyone feel like the economic upturn (if there is one) is temporary because of QE and government stimulus. It is a path towards economic oblivion.