Things That Make You Go Hmmm… Like “Anti-Gold Idiots”

gold_silver

Source: Zerohedge – Things That Make You Go Hmmm… Like “Anti-Gold Idiots”

This next paragraph contains what Grant Williams believes is the fundamental principle of investing in gold and silver, which so few people genuinely understand — despite the multitudes of commentators expending countless thousands of words.

Continue reading

After the Taper: The Fed’s Non-Plan Is Unchanged

inflation

Source: Mises.org – After the Taper: The Fed’s Non-Plan Is Unchanged

As an economist, it is getting more difficult to understand the logic underlying current monetary policy in the U.S. There are two main channels by which economists think monetary policy can influence growth and employment. The first is to lower interest rates to spur investment and consumption spending. The second is to induce inflation so real wages drop, spurring output and employment.

Continue reading

The nature of money

gold_silver

Source: Bullionstar – The nature of money

Notable excerpts:

“Money is not the creation of the state. It is not the result of acts of legislation and its emergence did not require a society-wide agreement of any sort. Money came into existence because the individuals who wanted to trade found a medium of exchange immediately useful. And the more people began to use the same medium of exchange, the more useful it became to them.”
–    Detlev S. Schlichter

Down through history, people have always had the need to trade and exchange goods. Barter trade is probably one of the earliest form of trading where goods are exchanged directly for other goods. If a trader A has apples while trader B has oranges, trade between them takes place if they want the goods produced by each other. They will then determine how many apples could be exchanged for an orange or vice versa.

Continue reading

Federal Reserve Excess (Oct 2013)

bernanke_01

Source: WSJ – Federal Reserve Excess

Notable excerpts:

Federal Reserve Chairman Ben Bernanke is about to provide the republic with another watershed moment. Last week it was reported that total reserves held for banks on the Fed’s balance sheet reached more than $2.365 trillion. Of that total, only about $59 billion are required reserveswhat banks must hold at the Fed to meet regulatory guidelines. The rest, just over $2.3 trillion, are excess reserves.

Continue reading