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Articles related to Money Supply
Nathan Lewis - New World Economics
Book Review:
In a time when it seems like central banks call the tune that everyone has to dance to, a book named Who Needs the Fed? (2016) is a deliberate provocation. Like his earlier book Popular Economics (2015), John Tamny takes on the potentially arcane issues of money, credit and banking with the help of contemporary tales of business adventure. The result is both accessible and sophisticated – more sophisticated than most academic work, whose obtuse mathematics actually amount to clumsy oversimplific
Sunday, May 29, 2016
Alasdair Macleod - Finance and Eco.
Regulation – the hidden curse
Regulations are nearly always introduced with the best intentions.In financial services, they aim to stop unscrupulous brokers and banks from ripping off the public through bad practices. Manufacturers are banned from making products which are dangerous to children, the environment, or which might fail through shoddy workmanship. However, state intervention in commercial matters is based on shaky grounds, consistent with denial of the role and workings of markets, and an overriding desire to int
Thursday, May 26, 2016
Antal E. Fekete - Gold University
  Hyperinflation or Hyperdeflation? 
The reason why QTM fails is that money is not one-dimensional. It is in fact two-dimensional. Quantity is one, and the velocity of circulation is the other dimension. Central banks control the former, and the market firmly controls the latter. As long as fair weather lasts, velocity may be ignored. But as soon as the weather grows foul, velocity returns with a vengeance. If it increases, we talk about inflation. If it decreases, we talk about deflation. In the extreme
Sunday, May 22, 2016
Przemyslaw Radomski CFA - SunshineProfits
Will Gold Standard Return?
The gold standard has been making headlines recently. What does it mean for the gold market? On Tuesday, Bloomberg published an interesting article entitled “Make America Gold Again: Calls for Everyone’s Favorite Standard Are Back”. It argues that the idea of fixing the U.S. dollar to gold is regaining popularity. It should not be surprising. When times are tough (or when recovery after a financial crisis is sluggish), alternatives to mainstream economic theories become more popular. Moreover, t
Friday, May 20, 2016
Alasdair Macleod - Finance and Eco.
The Eurozone is the greatest danger
World-wide, markets are horribly distorted, which spells danger not only to investors, but to businesses and their employees as well, because it is impossible to allocate capital efficiently in this financial environment.With markets everywhere disrupted by interventions from central banks, governments, and their sovereign wealth funds, economic progress is being badly hampered, and therefore so is the ability of anyone to earn the profits required to pay down the highs levels of debt we see tod
Thursday, May 19, 2016
Sprott Money
The Biggest Bubbles: China vs. the U.S. - Jeff Nielson
There is perhaps no other area where the tunnel-vision, hypocrisy, and corruption of the U.S. media is more visible than with respect to its nearly incessant China-bashing. Previous commentaries have exposed such vacuous drivel again and again and again. While the subject matter of the Corporate media’s China-bashing varies month to month, regularly interspersed in this propaganda are numerous variations of “China’s economy is in a bubble.” Once again this week, this is a theme in the U.S.
Thursday, May 19, 2016
John Butler - Goldmoney
The non-linearity of inflation psychology and the present danger of stagflation
The non-linearity of inflation psychology and the present danger of stagflationIntroductionEver since the 2008-09 global financial crisis there has been a lively debate between those anticipating a prolonged deflation and those predicting a transition to inflation. In certain respects, both sides of the debate have been correct, if sometimes confusing monetary, credit and price inflation. Recent data indicate, however, that the terms of debate are now shifting decisively in favor of those expect
Thursday, May 19, 2016
Mickey Fulp - Mercenary Geologist
The Life Cycle of Money
In the aftermath of the global economic crisis of 2008-2009, governments throughout the world have fostered a tenuous recovery predicated on massive increases in money supplies and debasement of currencies. Note however, that monetary debasement is not a recent phenomenon; it is simply the natural life cycle of money.There are six well-defined stages in the life cycle of money. This progression has occurred in every dominant civilization
Wednesday, May 18, 2016
Keith Weiner - Monetary Metals
Should the Gold Price Keep Up with Inflation?
The popular belief is that gold is a good hedge against inflation. Owning gold will protect you from rising prices. Is that true? Most people define inflation as rising prices. Economists will quibble and say technically it’s the increase in the quantity of money, however Milton Friedman expressed the popular belief well. He said, “Inflation is always and everywhere a monetary phenomenon.” There you have it. The Federal Reserve increases the money supply and that, in turn, causes an increase in
Wednesday, May 11, 2016
Robert P. Murphy
The Fed Can't Save Us
In December, the Fed hiked its target for the federal funds rate, which is the interest rate banks charge each other for overnight loans of reserves. Since 2008 the Fed’s target for the Fed Funds Rate had been a range of 0 percent – 0.25 percent (or what is referred to as zero to 25 “basis points”). But last month they moved that target range up to 0.25 – 0.50 percent. Ending a seven-year period of effectively zero percent interest rates.From our vantage point, we already see carnage in the fina
Wednesday, May 11, 2016
Darryl Robert Schoon - Survive the Crisis
Monetary Liquifaction, Gold and The Time Of The Vulture
Liquifaction: . 3: conversion of soil into a fluidlike mass during an earthquake or other seismic event, 4: inability of flooded capital markets to absorb additional capital without destabilizing paper assets, e.g.stocks, bonds, currencies, etc., 5. a monetary phenomena associated with the collapse of capital markets.LIQUIFACTION AFTER 1964 ALASKAN EARTHQUAKEInflation is always and everywhere a monetary phenomena caused by an increase in the money supply, the greater the increase, the greater th
Friday, May 6, 2016
Jason Hamlin - Gold Stock Bull
The Plaza Accord, The Shanghai Accord, and Gold’s Future
The year was 1985 and the global economy was only 14 years into the new monetary regime of free floating currencies (even contrary to the hundreds of centuries littered with failures of never working in longer terms). After abandoning the gold standard in 1971, the U.S. endured a destructive decade of stagflation (high inflation coupled with high unemployment).U.S. citizens were hurting more than at anytime since the Great Depression as an average savings account of $100,000 was losing roughly $
Thursday, May 5, 2016
Nathan Lewis - New World Economics
The Bank of England, 1844-1913 2: The Banking Department
We are continuing our look at the Bank of England during the period 1844-1913. In 1844, the Bank fell under a new regulation and reorganization, in which it was separated into two entities, the Issue Department and the Banking Department. The Issue Department was solely responsible for paper banknotes, and operated a system very similar to the "Making Change" or currency-board type system we looked at earlier. April 14, 2013: The Bank of England, 1844-1
Thursday, May 5, 2016
Michael J. Kosares - USA Gold
Did Shanghai just blow a hole in the old gold market?
Seven days in April send a message – loud and clear by Michael J. Kosares I did not want the day to pass without posting a few words on gold’s significant push to the upside, now trading just shy of the $1300 mark. To be sure, the dual positions with respect to rates on the part of the Bank of Japan (to stand pat) and the Federal Reserve (to remain ultra-dovish) played a role in the dollar’s recent weakness and gold’s strength. Those determinants though, in my view, are only part of the story, a
Monday, May 2, 2016
Przemyslaw Radomski CFA - SunshineProfits
Velocity of Money and Gold
The velocity of money is declining. What does it mean for the gold market? What is the velocity of money? It refers to how fast money passes from one holder to the next and is commonly defined as the rate at which money is exchanged from one transaction to another. Simply put, the velocity of money is the number of times one dollar is spent to buy goods and services per unit of time. It is the value of transactions (GDP) divided by the supply of money. For example, if the velocity is 2, it means
Tuesday, April 26, 2016
All Paper is STILL a short position on gold 
The gold derivatives pyramid is a vigorous free market creature. It cannot be put down with a simple declaration that the paper is no longer redeemable in gold, as governments did with currency. It is a short selling scheme that has become a trap from which few short sellers will escape
Monday, April 25, 2016
Alasdair Macleod - Finance and Eco.
Dollar FMQ update
The Fiat Money Quantity continues to rise at an accelerated pace, and now stands at $14.286 trillion.If it had continued to rise at the pre-Lehman crisis pace, it would be standing at only $8.474 trillion, a difference of $5.82 trillion. FMQ measures the quantity of money issued in return for the gold, first deposited in the forerunners to today’s commercial banks, and then transferred to the Fed after the creation of the Federal Reserve system. It is the sum of true money supply and the bank’s
Friday, April 22, 2016
Mike Hewitt - Dollar Daze
  Hyperinflation around the Globe 
Angola (1991-1999) Angola went through the worst inflation from 1991 to 1995. In early 1991, the highest denomination was 50,000 kwanzas. By 1994, it was 500,000 kwanzas. In the 1995 currency reform, 1 kwanza reajustado was exchanged for 1,000 kwanzas. The highest denomination in 1995 was 5,000,000 kwanzas reajustados. In the 1999 currency reform, 1 new kwanza was exchanged for 1,000,000 kwanzas reajustados. The overall impact of hyperinflation: 1 new kwanza = 1,000,000,000 pre-1991 kwanzas.
Thursday, April 21, 2016
Mac Slavo - ShtfPlan
Andrew Jackson, Who Fought Central Bank, Removed from $20 As “Public Concern for Liberty” Erased
The War on Cash has many fronts. The latest battle is for the face of the currency itself, and the central bankers, who control the front anyway, have imposed a symbolic defeat against the leaders in America’s past who have fought against the stranglehold of the money makers. Naturally, there are liberal politics at play, fighting for every inch of ground in the war for ideological re-engineering. History is being whitewashed, various figures of antiquity rolling in their graves…. At stake is a
Wednesday, April 20, 2016
John Rubino - Dollar Collapse
This Is How They Fool Us, China Edition
So it seems that China's economy, in crisis just a few months ago, is all better. And so, by extension, is everyone else. As the Wall Street Journal explains it: China Calms Anxiety With Economic Fixes WASHINGTON -- The world's financial leaders started the year worried about China's decelerating economy dragging the world into another major crisis. Now, they are breathing a small sigh of relief. Finance ministers, central bankers and other top officials gathering here
Wednesday, April 20, 2016