Saturday I’ve just been reading how central banks, already huge stock owners, will inject another US$3.5 trillion into stock-markets this year. The thrust of the article was that it would be a major problem if they ever sold those stocks. That is obviously true, which is why they won’t sell them. Economic collapse will not come from a deliberate collapse of the stock … [Read more...]
Sagging Currencies and Rattling Sabres
Friday Currencies are held together only by the agreement that they are of value. It could well be that they are about to take a tumble. Too many negatives are coincident: - Sabres are rattling in China, Russia and Japan* - Stock markets are overvalued - The major economies are in dire straits - Unemployment and poverty are widespread and growing - Banks are … [Read more...]
Gold Speculation?
One of only two economists that I read wrote this week about the volatile moves in Gold’s price being caused by rampant speculation. I understand that he knows better, and was using the terminology for ease, but it serves to perpetuate a gross confusion in the area of money. Gold is never bought and sold. It is always currencies that are being sold and bought. Though we … [Read more...]