Category: Fiat Currency
The analysis published under this category are as follows.
Tuesday, February 12, 2013
Is Japan About to Fire the First Shots in a 1930s Style Currency War? / Currencies / Fiat Currency
By: Money_Morning
Keith Fitz-Gerald writes: Chances are you've heard about the so-called "race to the bottom" in which various industrialized nations are gradually allowing their currencies to depreciate in an attempt to maintain competitive parity.
Forget about it...the real risk right now is an all-out 1930s-style currency war. I know it's not front-page news yet, but I have a sneaking suspicion it will be shortly.
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Tuesday, February 12, 2013
Why Currency Wars Are Evil / Currencies / Fiat Currency
By: Axel_Merk
Real people may die when countries engage in “currency wars.” Countries debasing their currencies risk, amongst others:
•Loss of competitiveness
•Social unrest
•War
Friday, February 08, 2013
Shock Year 2013 - Pitched Currency War Among Central Banks / Currencies / Fiat Currency
By: Jim_Willie_CB
Friend of gold Jim Sinclair, and executive to a mining firm with interests in Tanzania, put it so well. He captures the theme of this article when he said, "It is the constant drop in the dollar's usage as a contract mechanism internationally. No one sees this but it is the Hammer of Thor on the head of the dollar." The rejection of the USDollar in global trade will mean the end of the abused privilege in a currency turned toxic. Its rejection is the marquee event in the financial world for 2013, following isolation. It is unstoppable and all-encompassing, certain to have geopolitical consequences, as it alters the economic and financial landscape in harsh ways much like a band of violent marauders brandishing machetes alter the neckline of their victims. See the Tonton Macoute in Haiti. The greenback is cornered; it is done!
Saturday, January 19, 2013
The Trillion Dollar Coin: What You Really Need to Know / Politics / Fiat Currency
By: Rudy_Avizius
Recently a novel idea began circulating in the Washington Beltway that the government could print a $1 Trillion coin and use that to fund its operations in the absence of an agreement on the raising of the debt ceiling. This idea certainly sounds like it came from fantasyland, but if one follows it carefully through to its logical conclusion, it will shine a light on our current monetary system and how it is fundamentally unsustainable. The floating of the $trillion coin has inadvertently opened up a window not just to reform, but to transform our monetary system. The resulting transformational consequences would be welcomed by all political perspectives.
Thursday, January 17, 2013
Washington's Trillion Dollar Banana / Politics / Fiat Currency
By: Michael_Pento
It should be clear to all that Keynesian Counterfeiters now control many of the major governments across the globe. Fiscal and monetary "stimulus" led to the bond market collapses of southern Europe a couple of years ago. The Greek bond market was the first to crack at the beginning of 2010. Borrowing massive quantities of printed money caused yields on their 10-year note rose from 5.8% in January, to over 40% two years later. But the problem in Europe wasn't confined to just a Greek tragedy. In Portugal, their 10-year note yield soared from 4.07% at the start of 2010, to 15.4% in just 24 months. Similar, but less dramatic, bond duress occurred in Spain and Italy as well.
Tuesday, January 15, 2013
U.S. Trillion Dollar Battle: Print, Baby, Print! / Politics / Fiat Currency
By: Axel_Merk
While the introduction of a trillion-dollar coin has been shrugged off as nonsense, there are plenty of nonsensical concepts employed in our monetary system. Here we’ll shed light on a few of them.
Governments - or their central banks - can print a $100 bill. The value of such a piece of paper is worth exactly as much as the supply and demand of a currency dictates. Dollar bills are legal tender for payment of debt, but if someone does not like that the $100 bill is not backed by anything, then anyone is free to decline a $100 bill in exchange for services, and barter instead.
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Saturday, January 12, 2013
A Trillion Dollar Coin for Your Thoughts? / Politics / Fiat Currency
By: Andy_Sutton
The one consolation for insanity is that it usually tends to come full circle and deposit an appropriate amount of egg on the face(s) of the most outspoken proponents. It is no different when the discussion of our broken monetary system comes up. Although I must say, the latest stunt is bold and daring and might very well threaten the one thing that underpins the global monetary system itself, and that is confidence, mixed with a good deal of ambivalence.
Thursday, January 10, 2013
The Real Idea Behind The U.S. Trillion Dollar Coin / Currencies / Fiat Currency
By: GoldSilverWorlds
Paul Brodsky writes: Speaking of monetary abstractionism, there has been recent talk of a fiscal gimmick called “The Trillion Dollar Coin,” in which a platinum coin valued at $1 trillion would be created by the U.S. Mint for the Treasury Department. Treasury would then rid itself of its pesky fiscal deficit in one fell swoop by simply keeping the coin on deposit at the Fed.
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Wednesday, December 26, 2012
Doug Casey on the Morality of Money / Politics / Fiat Currency
By: Casey_Research
Editor's note: Doug Casey is known around the world for many very good reasons. Among investors, he's well known for being a very successful speculator and author. More broadly, his unwavering support of human liberty and his criticism of institutions based on coercion as well as those who support them have made Doug a hero to many... and perhaps public enemy number one to some of those whom he criticizes.
Whether one agrees with him or not, Doug almost always has a singular take on issues and ideas, making his essays and talks highly stimulating. As we approach the end of the year – a time when people often reflect on their progress or lack thereof over the past year across all areas of life – this February 2011 interview of Doug Casey by Louis James on the morality of money seems especially trenchant. We hope it helps you reflect on your relationship with money and investing, and brings a renewed sense of clarity and purpose to your financial activities in 2013.
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Friday, December 07, 2012
Research Shows ALL Fiat Paper Money Systems Eventually Fail / Currencies / Fiat Currency
By: GoldSilverWorlds
We often read or hear quotes like “paper money eventually fail” and “paper money always returns to its intrinsic value which is zero.” In this article, we provide evidence why these statements are true, backed by research in which 599 different forms of paper money have been analyzed. We explain in an easy to understand way what money fundamentally is, how monetary policies of governments are affecting everyone of us and how gold is first and foremost an alternative form of money (for each and every one of us, not only for an elite). Courtesy of Vince Cate for the incredibly valuable research and David Morgan who referred us to the research materials.
Friday, November 30, 2012
Is the World Really Flat? / Politics / Fiat Currency
By: Andy_Sutton
One of the really bad things about a period of crisis, especially when there is a vacuum in terms of real convictions, is that the void tends to be filled with anything and everything. I’m going to devote this week to some of the more absurd comments and theories that have emerged as they pertain to the whole idea of a fiscal cliff, and yet another debt ceiling battle in Washington. However, before we cover the absurdities and get to the ‘fun’ stuff, we need properly arrange the facts.
Friday, November 30, 2012
Sinister Implications of the Cashless Society / Politics / Fiat Currency
By: Patrick_Henningsen
Among the long list of items bundled by consensus reality merchants under the banner of ‘conspiracy theory’, is a world without cash – where technocrats rule over the populace, and everything and anything is exchanged via plastic and RFID chips.
In this sterile and controlled Orwellian hi-tech society, the idea of cash being passed from hand to hand would be as archaic as the thought of carrying around a rucksack of tally sticks today.
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Monday, November 19, 2012
Will USSR Rise From Ashes Through Eurasian Currency? / Politics / Fiat Currency
By: Pravda
The creation of the supranational currency within the scope of the Customs Union is inevitable, Prime Minister of Armenia, Tigran Sargsyan, believes. According to him, this should be the next stage of integration within the organization, which makes sense from the point of view of simplification of currency circulation in transfers. The new currency may see the light on January 1, 2015.
Saturday, October 27, 2012
Central Banks Are debasing More Than Our Currency / Currencies / Fiat Currency
By: John_Mauldin
I can only pass on Societe Generale’s work to you once in a while, but the piece for today’s Outside the Box is important enough that its author, Dylan Grice, worked hard to convince his bosses to let me share it with you. Dylan is one of my favorite investments analysts, as well as just an all-around nice guy.
Friday, October 26, 2012
Money Is Just An Illusion / Currencies / Fiat Currency
By: John_Rolls
John Rolls submits: The illusion of money, uncovering the evil plan behind the federal reserve, the central bank, and the world bank. They have designed a system to enslave you.Money is what most people spend their lives hunting , what if I tell you that today’s money is nothing more than an illusion in your mind , Its value is nothing more than a perception.
Wednesday, October 24, 2012
Central Banks Game Plan: One World Currency / Politics / Fiat Currency
By: BATR
Only those in total denial would claim that the world economies could grow their way out of the debt bubble. Mathematically, the rules of compound interest always destroy the purchasing value of fiat currencies. The era of zero interest rates will end. When the cost to finance debts reverts to normal levels, the bleeding will become a gusher. The world reserve currency status of Federal Reserve Notes will come under enormous pressure. As the central banks consolidate their control over international commerce and the economies of individual countries, the coin of the new realm will shift to a replacement for the U.S. Dollar.
Tuesday, October 23, 2012
Euro-zone Debt Crisis Presents Germany with a Golden Opportunity / Currencies / Fiat Currency
By: MISES
Patrick Barron writes: The euro debt crisis in Europe has presented Germany with a unique opportunity to lead the world away from monetary destruction and its consequences of economic chaos, social unrest, and unfathomable human suffering. The cause of the euro debt crisis is the misconstruction of the euro that allows all members of the European Monetary Union (EMU), currently 17 sovereign nations, to print euros and force them on all other members. Dr. Philipp Bagus of King Juan Carlos University in Madrid has diagnosed this situation as a tragedy of the commons in his aptly named book The Tragedy of the Euro. Germany is on the verge of seeing its capital base plundered from the inevitable dynamics of this tragedy of the commons. It should leave the EMU, reinstate the deutsche mark (DM), and anchor it to gold.
Tuesday, October 23, 2012
Currency Wars Part II / Currencies / Fiat Currency
By: Jesse
"All war is based on deception. Of all those close to the commander, none is more intimate than the secret agent; of all rewards none more liberal than those given to secret agents; of all matters none is more confidential than those relating to secret operations." Sun Tzu
"Let Hercules himself do what he may,
The cat will mew, and dog will have his day." William Shakespeare, Hamlet
Wednesday, October 17, 2012
Currency Wars: The U.S. Attacks / Currencies / Fiat Currency
By: Axel_Merk
Doubling down on QE3, the Federal Reserve (Fed) Chairman Bernanke tells China and Brazil: allow your currencies to appreciate. One does not need to be a rocket scientist to conclude that Bernanke wants the U.S. dollar to fall. Is it merely a war of words, or an actual war? Who is winning the war?
Sunday, October 07, 2012
Financial Warfare: Destabilizing Iran’s Monetary System / Politics / Fiat Currency
By: Global_Research
ESFAHAN – Dramatic fluctuations of the Iranian rial triggered small protests among merchants in Tehran’s grand bazaar on October 3rd, 2012. In an attempt by authorities to prevent further devaluation, Iran’s central bank recently issued new limits on the amount of USD available for purchase at a subsidized rate, leading many to panic as the rial fell 40% against the dollar since the start of October. Although the demonstrations were economic in nature, many took advantage of the moment to voice their grievances against the political system, with many crediting President Ahmadinejad with overseeing fiscal mismanagement that has exacerbated Washington’s unceasing barrage of economic sanctions. Ahmadinejad’s political opponents also blame his administration for economic mismanagement, sentiment that is appearing more frequently among Iranian society.