Category: Fiat Currency
The analysis published under this category are as follows.
Wednesday, November 03, 2010
More Real Bill Fallacies / Currencies / Fiat Currency
By: Professor_Emeritus
In the first article of my two-part series on the Real Bills Doctrine (RBD), in commenting on the Daily Bell's interview with Professor Lawrence H. White on October 10, 2010, I made the central point that the source of commercial credit is not saving but consumption. The following example will dramatize this point. Assume for the sake of argument that all banks in the whole wide world succumb to the sudden death syndrome simultaneously. What does this mean in terms of the production and distribution of consumer goods? Would we have to go back and start from scratch to save in order to replenish society's circulating capital? Saving is a time-consuming process and people have to get fed, clad, shod, and sheltered in the meantime. We could not restore circulating capital through saving for the simple reason that before we could we would die of starvation.
Wednesday, November 03, 2010
Real Bills (loans) are Harmful / Interest-Rates / Fiat Currency
By: Shelby_H_Moore
And analogously saving at interest rates, insurance, and all other forms
of futures contracts (promises and surety) are harmful.
Someone recently attempted to distill Real Bills, but missed the key essence of the problem with Real Bills:
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Tuesday, November 02, 2010
Gold and Real Bills / Currencies / Fiat Currency
By: Professor_Emeritus
The Daily Bell published an interview with Dr. Lawrence H. White, Professor of Economics, George Mason University, on October 24, 2010. One of the questions the interviewer asked was this: "Please comment on real bills and how they work."
In his answer Professor White gave the following example. Joe the Baker buys flour from Bob the Miller and gives him a bill promising to pay $1000 in 90 days.
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Sunday, October 31, 2010
Currency War: “The Worst of Wars" / Currencies / Fiat Currency
By: Bryan_Rich
Last week, here in Money and Markets, I suggested that the recent G-20 finance minister meetings could have a meaningful influence on the next trend in global currencies and other key markets. Therefore, we should pay very close attention to market activity.
I also suggested that this “influence” could be in the form of a coordinated intervention by G-4 economies (U.S., U.K., euro zone and Japan) to weaken the yen, a viable antidote to the bubbling and divisive currency tensions.
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Friday, October 29, 2010
G20 Currency War One Sided Compromise / Currencies / Fiat Currency
By: Peter_Schiff
Last weekend, the G-20 finance ministers met in South Korea to find areas of agreement in preparation for the main G-20 gathering in November. The Chinese rebuffed renewed American pleas for them to revalue their yuan. They rejected Secretary Geithner's suggestion of a four percent cap on current account surpluses. However, in return for accepting America's continued dollar debasement, the Chinese did agree to "look into" a revaluation of the yuan and the management of trade surpluses. They also agreed to an international self-policing regime to curb currency manipulation. This 'one-sided' compromise was hailed in the Western media as a triumph for Mr. Geithner. The US stock markets and dollar rallied. All looked good for the election season in November.Read full article... Read full article...
Thursday, October 28, 2010
CURRENCY WARS, Debase, Debt Default and Deny! / Currencies / Fiat Currency
By: Gordon_T_Long
In September 2008 the US came to a fork in the road. The Public Policy decision to not seize the banks, to not place them in bankruptcy court with the government acting as the Debtor-in-Possession (DIP), to not split them up by selling off the assets to successful and solvent entities, set the world on the path to global currency wars.
By lowering interest rates and effectively guaranteeing a weak dollar through undisciplined fiscal policy, the US ignited an almost riskless global US$ Carry Trade and triggered an uncontrolled Currency War with the mercantilist, export driven Asian economies. We are now debasing the US dollar with reckless spending and money printing with the policies of Quantitative Easing (QE) and the expectations of QE II. Both are nothing more than effectively defaulting on our obligations to sound money policy and a “strong US$”. Meanwhile with a straight face we deny that this is our intention.
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Tuesday, October 26, 2010
G20 Failure Means Currency War Continues / Currencies / Fiat Currency
By: Money_Morning
Don Miller writes: Despite securing an agreement from Group of 20 (G-20) officials to avoid weakening their currencies any further, the Obama administration failed to convince member countries to implement specific guidelines to measure compliance and monitor trade imbalances.
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Monday, October 25, 2010
Currency Wars, Ficitious Deflation Propaganda and Gold / Currencies / Fiat Currency
By: Howard_Katz
This past weekend the Group of 20 nations met to discuss the value of their currencies. These discussions are being called “wars” in the general media because, although there is no actual shooting or dropping of bombs, each nation approached them with the attitude appropriate to a war. “I’m going to get mine at the expense of my neighbor.” To sum up the positions of all the nations at the talks:
Saturday, October 23, 2010
G20 Meetings Could Prove Very Important for Currencies / Currencies / Fiat Currency
By: Bryan_Rich
While many investors have their eyes on the G-20 Summit in November, this weekend’s gathering of G-20 finance ministers could prove to be the more significant event for markets.
If you take a look at recent history, I think you would agree.
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Thursday, October 21, 2010
Currency Wars, Gresham’s Law and Digital Gold Currency (DGC) / Currencies / Fiat Currency
By: David_Knox_Barker
Introducing the Chronicles of Atticus McShrugg: Instead of typical article format, I've created a fictional character and will chronicle his interaction with the President of the United States during these trying times of global crisis. Atticus McShrugg, a staff member in the National Security Council (NSC), is making his debut in order to speak into the fast-paced developments in the international political economy and global financial markets.
Wednesday, October 20, 2010
Currency Wars, Market Manipulation and Quantitative Easing / Currencies / Fiat Currency
By: Bob_Chapman
As we write the US dollar is in the process of trying to find at least a temporary bottom at 76.50 and to launch a countertrend rally. We would think a rally back to 80 is achievable, but we do not believe it’s sustainable - only some stabilization through the election. Japan drew a line in the sand at 82 and finished last Friday trading at 81.37. That does not smack of success, but we see improvement over the next two weeks.
Sunday, October 17, 2010
Winning The Currency War By Unleasing Financial Nuclear War / Currencies / Fiat Currency
By: Matthias_Chang
Let us be very clear about the impact of the coming massive Quantitative Easing (QEII) by the FED, the financial bully of Wall Street. It is the unleashing of a financial nuclear weapon!
The financial media is portraying this process as "a war of survival" between America and the rest of the world. This is a war waged by Wall Street. Its main instrument is a Global Ponzi Scheme.
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Friday, October 15, 2010
Global Currency Meltdown / Currencies / Fiat Currency
By: Peter_Schiff
As the recession and resultant stimulus packages add to higher unemployment and increasing public-sector deficits, the government is seeking to boost the value of overseas earnings that are accrued by US corporations. To aid in this effort, the Fed is being pressured to erode the value of the US dollar, thereby making foreign sales more lucrative in nominal terms. But this form of stealth protectionism will fail just as surely as more overt trade barriers.Read full article... Read full article...
Tuesday, October 12, 2010
U.S. Treasury's Drive to Devalue the Dollar, Fed Takes Aim at Chinese Yuan / Currencies / Fiat Currency
By: Gary_Dorsch
Although the United States is still the world’s #1 economy, it’s increasingly feeling the heat of the Chinese dragon, breathing down its neck. At the beginning of the twenty-first century, the US-economy was eight-times larger than China’s - a decade later the figure was down to three-times. China’s $5-trillion economy has eclipsed Japan, Germany, France and Britain, to become the second-biggest, after three decades of blistering growth, and is now within reach of overtaking the US within 10-years. With China’s economic growth rate at 10% and the US-economy struggling at +1.5% growth, - this long-term prediction doesn’t sound that far-fetched.
Saturday, October 09, 2010
China’s Currency War, the Enemy #1 for Global Economy / Currencies / Fiat Currency
By: Bryan_Rich
When Brazil’s finance minister said the world was in a currency war, it came as big news to many people — a surprising “new” economic threat. But there’s nothing new about a currency war. China has been waging a war — an economic war — with its currency for a long time.
Over the last 14 years, China’s economy has grown four times as fast as the U.S. economy, and it has quickly soared to become the world’s second-largest. The key to China’s success has been a weak yuan — it’s method of manipulating a sustained advantage over its competitors in global trade.
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Saturday, October 09, 2010
Central Bankers’ Global Race to the Currency Devaluation Bottom / Currencies / Fiat Currency
By: Mike_Larson
Well, that pretty much seals the deal. I’m talking about the latest, lousy batch of employment data. The ADP Employer Services report out Wednesday showed the economy shedding 39,000 jobs in September — the biggest decline since January and far below the Bloomberg forecast for a gain of 20,000.
Thursday, October 07, 2010
Global Currency Wars Phantom Menace / Currencies / Fiat Currency
By: Kieran_Osborne
The last thing the global economy needs right now is anything that would hamper or derail economic growth. Unfortunately, there appears a growing specter of this occurring. Brazil and Japan’s recent decisions to intervene in the currency markets follow a disturbing trend. If policy makers are not careful, present dynamics may precipitate a worldwide economic slowdown, brought about by protectionist pressures and exacerbated by political motivations globally.
Tuesday, October 05, 2010
Welcome back to the Worldwide Fiat Currency Race to Debase! / Currencies / Fiat Currency
By: GoldCore
At the close of third quarter 2010, it is clear for the world to see that all fiat currencies around the globe have been getting their paperback-sides kicked in by true hard monies, silver and gold.
To all the paper-bug fiat currency fools out there, we have this to say to you. Scoreboard.
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Monday, October 04, 2010
What Does the Global Currency War Mean? / Currencies / Fiat Currency
By: Washingtons_Blog
There is a currency war ranging world-wide.
Japan, Brazil, Peru and countries all over the world are trying to beggar thy neighbor (just as happened during the 1930s) and gain a leg up for their exports by cheapening their currencies.
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Wednesday, September 29, 2010
Deep Economic and Debt Frictions Triggering Competing Currency Wars / Currencies / Fiat Currency
By: Jim_Willie_CB
Some prefatory stories are highly revealing. Bank of America is badly on the ropes. On the same weekend at the end of July, when the Bank For Intl Settlements executed a 340 ton gold swap contract, two other events happened. The London metals exchange apparently suffered coordinated delivery raids, all legal, but painful nonetheless, stripping the embattled exchange of much gold bullion. My source from the German banking fortress shared that the BIS might have rescued the London Bullion Market Assn, and thereby prevented a near default at the exchange. Spurious stories about aiding commercial banks, even the Portuguese central bank, were floated to distract the masses.