Deflation Must Be Embraced

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

There are two problems with understanding deflation: it is ill defined, and it has a bad name. This article puts deflation into its proper context. This is an important topic for advocates of gold as money, who will be aware that sound money, in theory, leads to lower prices over time and is often criticised as an objective, because it is not an inflationary stimulation.

The simplest definition for deflation is that it is when the quantity of money contracts. This can come about in one or more of three ways. The central bank may reduce the quantity of base money, commercial banks may reduce the amount of bank credit, or foreigners, in possession of your currency from an imbalance of trade, sell it to the central bank.

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To Counter China, India Pushes East

Re-Blogged From Stratfor

Highlights

  • China’s regional expansion in the Asia-Pacific will continue driving India into a security partnership with the United States and Japan as part of its Act East policy.
  • Barriers to market access will continue limiting the expansion of Indian trade with the Association of Southeast Asian Nations (ASEAN).
  • Fiscal and project management impediments will limit progress on India’s two key infrastructure projects in the northeast, thereby limiting its land-based ASEAN trade.

With its Act East policy, India is focused on strengthening its trade and infrastructural ties with Southeast Asia.

(BEYHANYAZAR/iStock)

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When Will Free Markets Emerge?

By George Smith – Re-Blogged From http://www.Silver-Phoenix500.com

If someone asked you to define “free market,” could you?  Could you do it on the spot without recourse to dictionaries or other crutches?

There’s an old tale about the origin of the term “laissez-faire” that gets to my point.  Here’s the write-up in Wikipedia:

The term laissez faire likely originated in a meeting that took place around 1681 between powerful French Comptroller-General of Finances Jean-Baptiste Colbert and a group of French businessmen headed by M. Le Gendre. When the eager mercantilist minister asked how the French state could be of service to the merchants and help promote their commerce, Le Gendre replied simply “Laissez-nous faire” (“Leave it to us” or “Let us do [it],” the French verb not having to take an object).

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China’s Economic Reforms Get Another Chance

Re-Blogged From https://worldview.stratfor.com

Editor’s Note

The 19th Chinese Communist Party Congress runs Oct. 18-24. The convention marks the start of a transition as delegates name new members to lead China’s most powerful political institutions. But the change in personnel is only part of a larger transformation underway in the Party and in the country — a process that began long before the party congress kicked off and will continue long after it ends. This is the third installment in a four-part series examining how far China has come in its transition, and how far it has yet to go.

For years, China has tried to better balance the wealth in Qingdao and other coastal areas with inland areas that have languished.

(STR/AFP/Getty Images)

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America the Beautiful, but Divided

By Rebecca Keller – Re-Blogged rom https://worldview.stratfor.com

For nearly a year the world has worked to adapt to recent changes, both real and perceived, in U.S. foreign policy. But as the globe responds to the new priorities of its only superpower, Americans themselves remain divided over how best to engage with their surroundings.

Much like the members of the European Union, each of America’s states has its own needs to fulfill. Technological progress has given some states an edge in pursuing their goals, but it has also left behind regions that were once among the most prominent forces in U.S. politics — including the country’s flourishing breadbasket, the American Midwest. And as the socio-economic gap between different parts of the country has widened, so have their policy preferences.

By design, political discourse and debate are woven into the very fabric of American governance. But rarely do rifts among states spill into foreign policy and global issues in a substantial way. That may not be the case for much longer, however, as U.S. President Donald Trump’s populist appeals attract strong allies — and even stronger opponents — to the White House.

States like California hold political stances that are much different than those of Trump's constituents in the American Midwest, particularly on matters related to the environment, energy, immigration and the tech sector.

(DUSTYPIXEL/iStock)

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India and Germany: A Partnership to Be Reckoned With

By Christoph Senft – Re-Blogged From Stratfor

Earlier this year, the leaders of Germany and India announced that they had taken their countries’ relationship “to a new level.” And to be sure, over the past few decades collaboration between the two has deepened on many different fronts. But Germany’s interest in India isn’t merely a byproduct of the Asian century, as the 21st century is now so frequently called. Rather, it has been building gradually over time, laying a sturdy foundation for the partnership that both countries are beginning to take more and more seriously.

(TOBIAS SCHWARZ/AFP/Getty Images)

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Gold Worm On The Yuan Hook

By Hugo Salinas Price – Re-Blogged From http://www.Gold-Eagle.com

Once again, I turn over in my mind the Chinese plan regarding their imported oil, which consists in convincing their oil suppliers to accept yuan in payment (and thus re-directing their sales outside the orbit of the US dollar) with an additional sweetener in case the oil exporters do not wish to hold assets denominated in yuan: the sweetener consists in offering to exchange the yuan received by the oil exporters, for gold purchased on the world markets – and not out of Chinese reserves.

Again, I mention that for the first time in 46 years – ever since that fateful date, August 15th, 1971, when Nixon took the US “off gold” – gold is once again mentioned as part of a commercial deal – and one of great importance.

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