Lemonade Stand Economics

By Gary Christenson – Re-Blogged From http://www.Gold-Eagle.com

Summary: Timmy, a precocious ten-year-old opens a lemonade stand and learns about unbacked currencies.

“Dad, I’m excited and ready for business. Mom made me sign an IOU when she gave me sugar and frozen lemonade so I have stuff to sell.” Timmy looked up at his father and smiled in anticipation.

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Why A Dollar Collapse Is Inevitable

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

We have been here before – twice. The first time was in the late 1920s, which led to the dollar’s devaluation in 1934. And the second was 1966-68, which led to the collapse of the Bretton Woods System. Even though gold is now officially excluded from the monetary system, it does not save the dollar from a third collapse and will still be its yardstick.

This article explains why another collapse is due for the dollar. It describes the errors that led to the two previous episodes, and the lessons from them relevant to understanding the position today. And just because gold is no longer officially money, it will not stop the collapse of the dollar, measured in gold, again.

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The Skyrocket Phase

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

Let’s tie two topics we have treated, one in exhaustive depth and the other in an ongoing series. They are bitcoin and capital consumption. By now, everyone knows that the price of bitcoin crashed. Barrels of electrons are being spilled discussing and debating why, and if/when the price will go back to what it ought to be ($1,000,000 we are told).

As an aside, in what other market is there a sense of entitlement of what the price ought to be, and a sense of anger at the only conceivable cause for why the price is not what it ought?

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Uncle Sam Issuing $300 Billion In New Debt This Week

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

US needs to borrow almost $300 billion this week alone
– This is the largest debt issuance since 2008 financial crisis
– Trump threatens trade war with its biggest creditor – China
– Bond auctions have seen weak demand due to large supply and trade war concerns
– $20 trillion mark reached in early September 2017; $1 trillion added in just 6 months
– US total national debt level now exceeds $21.05 trillion and is accelerating higher
– U.S. debt and dollar crisis coming which will propel gold higher (see chart)

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Silver To Gold Ratio

By Gary Christenso – Re-Blogged From http://www.Silver-Phoenix500.com

Silver prices move farther and faster than gold prices, both up and down. When long term rallies begin silver often lags gold as in early 2018. The current gold to silver ratio at eighty to one is high. Fifty-nine to one has been the average for 40 years. Prior to 1913 the average was about 15 to one.

An eighty to one gold to silver ratio shows prices for gold and silver are too low. At silver price peaks the ratio will drop to thirty or even fifteen to one.

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Interest Rates Won’t Rise

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

How Not To Predict Interest Rates

We continue our hiatus from capital destruction to look further at interest rates. Last week, our Report was almost prescient. We said:

The first thing we must say about this is that people should pick one: (A) rising stock market or (B) rising interest rates. They both cannot be true (though we could have falling rates and falling stocks).

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Brexit Risks Increase

By Mark O’Byrne – Re-Blogged From http://www.Silver-Phoenix500.com

Brexit uncertainty deepens as UK government in disarray

– BOE warns of earlier and larger rate hikes for Brexit-hit UK

– UK property prices fall second month in row, London property under pressure

– No deal Brexit estimated to cost UK £80bn according to government analysis – Transition period causing major uncertainty for UK and pound – Pound expected to fall as Brexit fears remain into 2018

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