Tag Archives: central banks

NIALL FERGUSON: The iPIGS, don’t forget Italy!

29 May
Vodpod videos no longer available.
Advertisements

5 reasons to love the yellow shiny metal

11 May

My mom used to tell me never to talk to strangers. One stranger told us all that inflation was controlled and below expectations, that consumers don’t want to buy gold, that he is not printing money and that his definition of the dollar is what it can buy. I don’t trust strangers, especially those who do not tell the truth.

Without me enduring more cheap analogies at this late hour, I will save you the discomfort so 5 Reasons Gold Will Continue to Shine courtesy of the TheStreet.com. The only caveat is that gold as an investment vehicle needs to be purchased on an incremental basis over time; it is not a momentum trade or for the very short term speculator. The key themes are below:

1. The declining dollar and outlook for rising U.S. inflation

2. Strong emerging market demand

3. Central banks from sellers to buyers

4. Not just a defensive asset

5. Supply has been constrained

What will it take to get a serious discussion on solving worldwide debt?

11 May

Pickled politics, bendy left-wing antics and right-wing semantics, what will it take to get a serious discussion on solving worldwide debt? There used to be a time when nations spent what they could afford, constrained by the discipline of gold and precious metals. We are now in a position of insanity. Maybe we could plead insanity as a mitigating factor in restructuring our national debt with our creditors. And to the extent that Obama is prepared to paper over all the economy’s mishaps, to extend healthcare for all, unemployment insurance for the chronic work-shys and an extension of tax free subsidies for those who require it the least, all ideas however wacky are invited. America – the land of opportunity.

The Economist had a fairly interesting article titled ‘If nothing else, fiscal rules may trigger a debt discussion’ which highlighted a very pertinent point, the critical discussion of debt ceilings and imposing fiscal discipline. While I cannot subscribe to all facets of the piece the more we get talking about national debt the better. Debt clock anyone?

Ben Bernanke plays hide and seek with inflation

30 Apr
%d bloggers like this: