Central Bank Folly: Blame The Boomers…

By Michael Ballanger – Re-Blogged From Gold Eagle

“Destroyers seize gold and leave to its owners a counterfeit pile of paper.” – Ayn Rand

The baby-boom generation, of which I am a less-than-proud member, blew it.

There was a time long, long ago when the mention of the word “baby-boomer” evoked a sense of pride of membership. Amidst the prosperity of the post-WWII era, birth rates in North America soared while the sons and daughters of many men and women that fought in the war became the dominant demographic force by the year 1966. When I was in Grade 10, I wrote an essay that pointed to the defining moment where the excitement and unbridled optimism of the Space Race, advances in modern medicine, and unparalleled economic growth was snuffed out forever by an assassin’s bullet in Dallas in the autumn of 1963. With the end of Camelot, the boomer generation suddenly began to question things. They threw away the Beach Boys “Surfin’ Nirvana” lifestyle to the darker messages of Bob Dylan, CSNY, the Doors, and Hendrix as they watched while the Viet Nam war claimed over 58,000 U.S. servicemen and caused massive civil unrest to permeate the inner cities and the campuses of America.

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Socialism 2020?

By Stefan Gleason – Re-Blogged From Gold Eagle

The 2020 presidential election is already shaping up to be one of the most bitterly contested in history. The outcome could have enormous ramifications for all asset markets, including precious metals.

In the meantime, a lot can happen before November 2020 – especially with the Federal Reserve apparently set to turn dovish and cut interest rates this summer.

Some historical research into presidential election cycles suggests that the stock market tends to perform well heading into an election year. The incumbent administration tends to focus on padding economic statistics.

And during election years, Fed officials (who swear up and down they aren’t motivated by politics) tend to avoid making policy moves (such as rate hikes) that could make them vulnerable to political attacks.

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Silver Price – 1993 And 2001 Repeat

By Gary Christenson – Re-Blogged From Silver Phoenix

The M2 measure of money supply has increased about 6.7% per year since 1971 when President Nixon severed the last hint of gold backing the dollar. The subsequent deluge of digital dollars levitated prices for oil, trucks, hamburgers, the S&P 500 Index, silver and almost everything else. Examine the log scale graph of M2 and smoothed silver prices. M2 rises, while silver prices increase to unsustainable levels, fall too low and then rise again.

In late 2018 silver prices are too low! They hit bottom in December 2015 and have risen since then. First slowly, then rapidly, as Hemingway said…

Analysis: Silver prices are too low.

Silver prices rise along with M2, but they are now well below trend. This graph shows that silver could rise above $30 in 2019.

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What Can Kill A Useless Currency

By Keith Weiner – Re-Blogged From Gold Eagle

There is a popular notion, at least among American libertarians and gold bugs. The idea is that people will one day “get woke”, and suddenly realize that the dollar is bad / unbacked / fiat / unsound / Ponzi / other countries don’t like it / <insert favorite bugaboo here>. When they do, they will repudiate it. That is, sell all their dollars to buy consumer goods (i.e. hyperinflation), gold, and/or whatever other currency.

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Anatomy Of Hyperinflation

By Michael Pento – Re-Blogged From Silver Phoenix

Two drones filled with explosives were recently deployed in a failed assassination attempt to take out Venezuelan President Nicolas Maduro. Chaos filled the streets as the military ran for their lives. But this sort of pandemonium is commonplace in Venezuela today: Where citizens have run out of basic necessities such as toilet paper and have begun eating their pets in order to stay alive. The mainstream Keynesian-brainwashed media doesn’t talk much about Venezuela or hyperinflation; perhaps because they are viscerally aware that the seeds of intractable inflation on a worldwide basis have already been sown by the global elites–and they don’t want to frighten you.

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Ancient Dollars And Gold Bullion

By Gary Christenson – Re-Blogged From Gold Eagle

Consumer price inflation is real. It sneaks into every facet of life. Bags of coffee shrink from 16 ounces to 12 ounces and then to 10 ounces. “Shrinkflation is policy. That Snickers candy bar is smaller but costs the same or more.

But don’t blame the candy industry, coffee distributors or automobile manufacturers. Fiat currencies create the problems.

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Venezuela’s Annual Inflation Rate Has Reached Over 4,000 Percent

By Sydney Jones – Re-Blogged From https://ijr.com

In 2017, Venezuela’s annual inflation rate rose to 4,068 percent, according to reports made by the opposition-led National Assembly.

According to The Wall Street Journal, the inflation rate has risen so rapidly that the government cannot print money fast enough to keep up with the demand. A U.S. dollar currently is worth more than 200,000 bolivars, the Venezuelan currency.

TOPSHOT-VENEZUELA-CRISIS-ECONOMY-PETRO

Federico Parra/AFP/Getty Images

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