Monetary Innovation In The Ancient World

By Keith Weiner – Re-Blogged From Silver Phoenix

We think we are the only generation to be smart. In the 19th century, they did not have the internal combustion engine. In the 18th century, they did not have the railroad. In the 17th century, they did not have the piano. So, most people assume, they were dumb. They did not know about smart phones, so they would not have understood anything. Such as money.

So let’s tell the story of the ancient city of Orinthus. They were innovators in money, millennia ahead of their time…

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Division of Labor

Orinthus was inhabited by the first people to settle down with agriculture and fishing. Soon, a new class of evolved: those who crafted goods out of riverbank clay, animal hides, and even stone quarried from the local hills. With the advent of real production and trade, they soon discovered it’s terribly inefficient if the guy who made leather needed to find a fisherman who needed shoes whenever he was hungry. They realized they needed money.

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But “We Owe It To Ourselves”

By Keith Weiner – Re-Blogged From http://www.Gold-Eagle.com

Have you ever heard someone say this? It falls into the category of, it’s so perverse, so wrong, and so wrong-headed that there has got to be a constituency out there somewhere, to assert this!

First, let’s head off at the pass the objection that the majority of US government debt is held by foreigners. As of March this year, the US Treasury estimates that $6.3 trillion worth of Treasury bills and bonds are owned by foreign holders. This is not even close to the majority of it.

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Global Trends, Events And News

By Don Swenson – Re-Blogged From http://www.Silver-Phoenix500.com

Change is in the ‘air’ and 2017 is likely to lead to major changes within our global political/economic/religious/scientific system. People are starting to think about all the various issues which will be emerging all around our planet. The issues are complex and confusing as paradox is a major part of the problem. Our world mostly operates with paradox and contrarian perplexities. Let’s review our global situation briefly for further understanding and comprehension:

Middle-East Situation

The wars and chaos over in the Middle-East are tragic and must eventually be resolved. Thousands have been killed and millions are seeking refuge. Basically, the Islamic countries (within this Middle East territory) do not see eye to eye with Western hegemonic goals and visions. Since the end of WWI this region has been in continuing turmoil…and recent events are now culminating into serious chaos (leading to WW III potentially). Syria is unable to govern itself. Iraq is unable to govern itself. The same goes for Iran, Afghanistan, Libya, Egypt, Yemen, Somalia, Sudan, Gambia, Nigeria, and a host of similar Islamic nations where the rule of law does not work effectively. Leaders cannot solve any of the core political secular problems. The core issues are actually spiritual!

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Illusory Gains

By Egon von Greyerz – Re-Blogged From http://www.Gold-Eagle.com

Investors in most countries make the mistake of measuring their returns based on their home market and their domestic currency. This might have worked when they only had access to their local investment market. But that time is long gone. Now we have a global economy and most Westerners have access to securities worldwide. Still, in for example Germany, the UK or Japan, investors measure returns in their local currency. Even more so in the US. Due to the size of the US economy and the importance of the dollar, few Americans look at investment markets or currencies in other countries.

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The Fractional Reserve Banking Sideshow

cropped-bob-shapiro.jpg   By Bob Shapiro

I have seen a recent flurry of articles, including one by Austrian School Economist, Frank Shostak, of the Mises Institute, discussing the evils of Fractonal Reserve Banking (FRB) regarding the Boom-Bust Cycle.

While I also am a Free Market guy, subscribing to the Austrian School, I think the critics of FRB are allowing themselves to fight the wrong fight – to be diverted by a red herring.

Let us consider three countries. Each one has a Money Supply of $1 Trillion, which has remained constant for several years. Country 1 has as its money a Gold Standard. Country 2 uses a 100% paper currency. And Country 3 has a basic, unchanging money supply made up of 1/10th base money (either Gold or paper money – take your pick), plus 90% bank credit of the FRB type, totaling $1 Trillion.

Image result for fractional reserve banking

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Will Trump Bring Inflation To America’s Shores?

By Stefan Gleason – Re-Blogged From http://www.Gold-Eagle.com

Something is brewing in the economy. Since the election of Donald Trump, interest rates have spiked, copper prices have surged, and various sectors of the stock market have swung “bigly” on speculation of what “Trumponomics” will bring.

Scores of triumphant Republican commentators are already painting a bullish picture of the Trump economy. The GOP – which will control the White House, Congress, and most state governments – has a rare opportunity to implement a pro-growth agenda.

Republicans squandered their last great window of opportunity. George W. Bush and his Congressional allies grew government spending at a faster clip than the economy and saddled the country with trillions of dollars in new debt.

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Economic Stagnation

By Gerald Peters – Re-Blogged From http://www.Silver-Phoenix500.com

So we have once again seen official reports about sub-par economic growth. Some are constantly perplexed as to why growth is so weak. I believe it will eventually become more obvious to everyone that debt is one of the major problems causing our current stagnation.

Looking at the above chart, we see GDP growth rates have been getting weaker each decade. The economy used to grow at 7 or 8 %…then 5 or 6%…then 4%…then 3%. Currently. There is only 2% growth. Moreover, after the next recession we will be lucky to see 1% growth as the norm. Follow the trend and we see that the US economy will probably be at 0% economic growth after 2030. To be sure after 2040 we will probably see negative growth as the norm. By the way, the chart of retail sales growth looks the same. This trend has continued regardless of which political party controls the White House or Congress.

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