Friday Many people understand that currencies are just debt notes and that they will have zero value at the precise point that the debt collapses. So why are they not falling in value? Why is demand for currencies so strong? The answer is that we need them – desperately. It has nothing to do with ‘an idea backed by confidence’ as was suggested to me (again) … [Read more...]
Banging of the Drums
Sunday The banging of the drums announcing a rising ‘price of Gold’ are beginning again. Mighty Gold warriors are beating back the manipulators of the ‘price of Gold’. The high priests of hyperinflation, embarrassed and subdued by reality for so many years, are re-emerging from the shadows to join in the cacophony. These defenders of the true faith exhort you to invest in … [Read more...]
Debt Service
Wednesday Keith Weiner makes the interesting point that the dollar has value because, and only because, of the necessity to service debt. “The dollar does not have value because of some fragile, collective faith. The dollar has value because of the struggles of the debtors. What are you willing to sell, in order to avoid foreclosure on your house, repossession of your … [Read more...]
Aussie Dollar Tumbles
Wednesday As I write, the Australian dollar is dropping hard. It has been fairly stable (by currency norms) for quite a while. That changed a few days ago. What’s happening? Is the Saudi/Iran situation intensifying and posing a threat to the oil price, and to those nations that would impact, like Australia? Is it the emergence of media stories outlining how weak and … [Read more...]
Staring at the Rocks
Wednesday Gold measures the value of currencies. Nothing else can accurately measure value. That is why Gold is money. Like most other goods, the value of currencies rises when they are in demand and falls when they are not. Enormous confusion is generated by Gold websites that reverse reality by showing the value of Gold measured in currencies. You must look at the … [Read more...]