Articles related to Theory
 
Steve St Angelo - SRSRocco Report
CPM Group’s Jeff Christian Responds “NEGATIVELY” To The SRSrocco Report On Silver Investment Demand
The debate continues between the SRSrocco Report and CPM Group’s Jeff Christian on the fundamentals of the silver market.  After my article, in which I questioned the CPM Group’s exclusion of silver investment demand from their supply and demand analysis, Jeff Christian responded with a comment on my website.  I am glad that Mr. Christian responded because it now allows me the opportunity to explain in more detail why I disagree with the CPM Group’s analysis.As I have mentioned before, this has
Tuesday, December 12, 2017
Frank Shostak
The Fed's Fantasy on Neutral Interest Rates
In her testimony to the Congress Economic Committee on November 29, 2017, the Fed Chair Janet Yellen said that the neutral rate appears to be quite low by historical standards. From this, she concluded that the federal funds rate would not have to increase much to reach a neutral stance.The neutral rate currently appears to be quite low by historical standards, implying that the federal funds rate would not have to rise much further to get to a neutral policy stance. If the neutral level rises s
Tuesday, December 12, 2017
Jesse - Le Cafe Américain
Stock Markets and Precious Metals Charts - FOMC Decision Wednesday, Stock Option Expiration Friday
"They never open their mouths without subtracting from the sum of human knowledge." Thomas Reed (R-Maine) Bloomberg had economist Art Laffer, of the eponymous Laffer Curve, talking up the GOP 'Tax Reform' bill in all its 'trickle down' glory. I did not even know this retrograde nonsense peddler was still around, having been discredited in his economic theory of top down stimulus rebranded as 'supply side economics'. Now we know just how bad for the people this new tax legislation may be. The
Tuesday, December 12, 2017
Nathan Lewis - New World Economics
Applied Mainline Economics (2017), by Matthew Mitchell and Peter Boettke
Matthew Mitchell and Peter Boettke are academic economists at the Mercatus Center, a think tank associated with George Mason University. I like Mercatus and its work a lot, as it explicitly builds upon and follows the work of people like F.A. Hayek, Adam Smith, and James Buchanan. I don’t follow the academics too closely, but they often have some good insights, so I was looking forward to a book that might summarize some of those insights and let me know where to look for more detail. The idea b
Saturday, December 9, 2017
Adam Hamilton - Zealllc
Bitcoin Mania Parabolic
Bitcoin’s meteoric skyrocketing this year has been astonishing, captivating traders across the globe.  This once-obscure cryptocurrency has exploded into the world’s hottest market.  With fortunes being won on paper, everyone is talking about bitcoin.  But with its price shooting parabolic, unfortunately this wild ride has all the hallmarks of a classic popular speculative mania.  And those all end badly, totally collapsing. In the annals of financial-market histor
Friday, December 8, 2017
Alasdair Macleod - Finance and Eco.
Inflation v Deflation – State Finances
There is a general belief, and that is all it is, that state finances fare better in an inflationary environment than a deflationary one. This perception arises from the transfer of wealth from lenders to the state through a devaluation of the currency, which occurs with monetary inflation, compared with the transfer of wealth from the state to its creditors through deflation. The effect is undoubtedly true, even though it is played down by governments, but it ignores what happens to continuing
Friday, December 8, 2017
Peter Schiff - Euro Pacific Capital
Fake Tax Reform
After supposedly chomping on the bit for years to pass meaningful tax reform, Republicans are now set to blow an historic opportunity. Whatever version of the Bill that emerges from the House and Senate Conference Committee (which will be signed by President Trump faster than he can down a Filet o’Fish), will be far less than the Republicans envisioned when they finally captured the White House and both Congressional Chambers in 2016. But from what I have seen of the particulars, the revisions t
Thursday, December 7, 2017
Keith Weiner - Monetary Metals
What’s the Point
A reader emailed us, to ask a few pointed questions. Paraphrasing, they are: Who cares if dollars are calculated in gold or gold is calculated in dollars? People care only if their purchasing power has grown. What is the basis good for? Is it just mathematical play for gold theorists? How does knowing the basis help your readers? Is it just a theoretical explanation of what has already happened? Prove that if someone has known the basis for the last four years, he has benefitted. He also added
Monday, December 4, 2017
The Gold Report
Silver and Gold Bottom Soon
Gold and silver are on track to hit a yearly low this December, as they have for the past five years, says Bob Moriarty of 321 Gold, who explains his reasoning and why he welcomes these moves. Silver and gold have hit a new a low for the year during December in each of the last five years. They are on track for repeating their journey this year if we are to believe sentiment matters. And I do. Two measures allow us to gauge sentiment. My favorite is the
Monday, December 4, 2017
Frank Shostak
More on Interest Rates and Time Preference
In a recent column for Mises Wire, Doug French raised very important issue of negative interest rates.  Quoting Fleckenstein Capital He wrote,Yesterday a Parisian BBB-rated company (i.e., quasi junk) issued $500 million in three-year notes yielding negative 0.026%. We have been peppered with so many absurdities, nothing seems absurd anymore…French continues with his own observations: [The French utility company] Veolia Environnement S.A. floated €500 million of debt, rated just 2 notches above j
Sunday, December 3, 2017
Phoenix Capital - Gains Pains & Capital
John Podesta Slams Feminist Over Pizzagate Question At Duke University [VIDEO]
Content originally published at iBankCoin.com Former Clinton campaign manager John Podesta jumped down the throat of feministand Political Science majorNicole Kiprilovin front of 300 people at Duke University Wednesday, after the undergrad asked Podesta questions about how he responds to various controversies including ‘Pizzagate,’ Uranium One, The Podesta Group, and Joule Unlimited – a now-defunct Boston green energy company Podesta sat on the board of along with to two Russian officials, which
Friday, December 1, 2017
Frank Shostak
How Inflation and Unemployment Are Related
A fall in the US unemployment rate to 4.6% in November from 4.9% in the month before, and 5% in November last year, has prompted some commentators to suggest that we are almost at the so-called natural rate, which is believed to be at around 4.5%.It is held that once the unemployment rate falls below an "optimal" rate — called the Non-Accelerating Inflation Rate of Unemployment (NAIRU) — it sets off an inflationary spiral. This acceleration in the rate of inflation takes place through in
Friday, December 1, 2017
Alasdair Macleod - Finance and Eco.
Monetary update for the dollar
A dispassionate look at the quantities and flows of fiat dollars tells us much about the current state of the US economy, and therefore prospects for the dollar itself.This is a starting point for understanding the dynamics likely to affect the dollar’s purchasing power after the next credit-induced crisis, which are now beginning to clarify. That is the purpose of this article, which starts by updating the most recent developments in the quantity of fiat money (FMQ), the greatest of all monetar
Friday, December 1, 2017
Mac Slavo - ShtfPlan
  The Flat Earth Society Responded To A Tweet By Elon Musk: ‘Thanks For The Question’
The Tesla and SpaceX chief, Elon Musk, has a rather complex understanding of the universe, and Earth’s shape. He even made a tweet directed at those who believe the Earth is flat, and the response from the Flat Earth society will leave you dumbfounded. Elon Musk would have to have a working knowledge of Earth’s shape in order for his math to work and his company to propel a spacecraft to Mars, which is a goal of SpaceX’s. With all the news swirling around flat Earth conspiracy theories recently,
Thursday, November 30, 2017
Frank Shostak
  Why It's Important to Define Money Correctly
Most economists hold that, since the early 1980s, correlations between various definitions of money and national income have broken down. The reason for this breakdown, it is held, is that financial deregulation has made the demand for money unstable. As a result it is held the usefulness of money as a predictor of economic events has significantly diminished.To fix the instability of the demand for money, economists have introduced a gauge of the money supply known as the Divisia monetary indic
Wednesday, November 29, 2017
James Howard Kunstler
Exit Sign 
Shoeshine boys in airports ‘round the world must be whispering about Bitcoin as the crypto-currency coils upward to tickle the $10,000 line. Ethereum’s roaring up, too, along with most other cryptos, from Byteball Bytes to Tattoocoin (Limited Edition). Whatever else you think about it, this action is sending a message, perhaps several. One would be Get Rich Quick, of course. Eight months ago, you could have copped Bitcoin for a mere $1000, and around Labor Day it touched $5000, which seemed, wel
Tuesday, November 28, 2017
Phoenix Capital - Gains Pains & Capital
Is Crypto The Only Truth?
In the nearly thirteen years that I've been writing Slope of Hope, perhaps the most ironic post (out of over 20,000) was one I did last January called Bitcoin's Massive Bullish Base. The reason it's ironic is because Slope is largely dedicated to seeking out short-selling ideas for stocks, whereas the post was about going long a cryptocurrency. Seven-hundred percent later, It turned out to be the greatest trade idea in the blog's history, which actually doesn't feel that great for the reason jus
Sunday, November 26, 2017
Chris Powell - GATA
Alasdair Macleod: Deflation must be embraced
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 criticixed 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 o
Friday, November 24, 2017
Alasdair Macleod - Finance and Eco.
Deflation must be embraced
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
Friday, November 24, 2017
Gary Savage - Smart Money Tracker
THE LEMMINGS ARE HEADING TOWARDS THE CLIFF… AGAIN
Did we learn nothing from the tech bubble? The real estate bubble? The energy bubble? Apparently not, as here we go again. The next series of bubbles is now in progress (Bitcoin is the first). Let me go over again the signs of a bubble. Price will usually rally at least 100% or more in a year or less. A clear sign of out of control human emotions. Price will stretch 40, 50, or even 100%+ above the long term mean (200 day moving average). Investors will start to rationalize reasons for why this r
Thursday, November 23, 2017
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