This article from Spiegel Online spells it out with no holds barred. The gist is that banks supply governments with the means to continue their spending operations, which often involve raising deficits and debt to unsustainable levels. In turn, governments bail these banks when such operations fail inevitably.
Sunday, November 25, 2012
Sunday, November 11, 2012
Expect more China inflation, higher gold prices
China has reported a drop in its 'inflation rate,' to 1.7% over the past year. Of course, by 'inflation rate,' China means an increase in its consumer price index, however the heck it fudges the numbers for this. What is ignored is the actual rate of inflation, that is, the rate that money supply increases, which is the better indicator as to how high prices will get.
Monday, November 5, 2012
The Eve of the 2012 US Elections, and the Fate of Gold
In spite of myself, I have been rather excited about the US elections. Not that I think it really matters who wins; it doesn't. But I do like watching friends and the media make a big deal about this sideshow among two guys who think they bring anything different to the table.
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