Chart usGOLD   Chart usSILVER  
 
Food for thought
To hell with the cheese, let’s get out of this trap!
A mouse  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1285.112.65
Silver 20.430.05
Platinum 1459.904.15
Palladium 870.201.07
WORLD MARKETS
DOWJONES 16563-306
NASDAQ 4370-93
NIKKEI 15523-98
ASX 5548-76
CAC 40 4211-36
DAX 9332-75
HUI 234-5
XAU 99-2
CURRENCIES (€)
AUS $ 1.4411
CAN $ 1.4616
US $ 1.3382
GBP (£) 0.7932
Sw Fr 1.2168
YEN 137.7760
CURRENCIES ($)
AUS $ 1.0770
CAN $ 1.0922
Euro 0.7473
GBP (£) 0.5928
Sw Fr 0.9094
YEN 102.9520
RATIOS & INDEXES
Gold / Silver62.90
Gold / Oil13.11
Dowjones / Gold12.89
COMMODITIES
Copper 3.250.02
WTI Oil 98.04-0.13
Nat. Gas 3.82-0.02
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Why Stimulus Always Fails
Published : January 31st, 2013
411 words - Reading time : 1 - 1 minutes
( 4 votes, 3.8/5 ) Print article
 
    Comments    
Tweet

Read the Monday Afternoon Wrap-Up for 1/28/2013 and the Tuesday Morning Commentary for 1/29/2013

Last week, I came across the below article; and immediately knew I had a RANT topic-to-be.  The title says it all; about realities of the past, present, and future

Guest Post: Why Stimulus Has Failed

In most aspects, the world is a very complex place.  And when you’re talking about a GLOBAL economy incorporating hundreds of nations, languages, and currencies; “complex” is certainly the operative word.  However, economic theory is not complex at all.  To the contrary, NOTHING could be simpler than Economics 101.

Its central tenet is that in a free market, supply will naturally gravitate to demand; at times, yielding painful, but necessary “corrections.”  However, governments embrace the OPPOSITE of these universal laws; mucking up the self-correcting process; causing MASSIVE capital misallocation; and ultimately, dramatic crashes like we experienced in 2008.

In and of itself, fiscal stimulus is contrary to the aforementioned LAWS of “economic Mother Nature.”  However, they are a necessary societal evil; and when utilized prudently – with retained Treasury savings – its impact is typically non-destructive; and at times, beneficial.

However, in today’s fiat world – in which ALL nations abandoned the gold standard four decades ago; the corrosive side effect of MASSIVE debt buildup has rendered the concept of “prudent stimulus” impossible.  Rather, essentially ALL nations PRINT MONEY to effect “stimulus”; causing increased debt buildup and gross capital misallocation.  Worse yet, the global “fiat standard” has enabled bankers to commandeer government; causing most “stimulus” to benefit them,at the expense of all else.

In other words, today’s definition of “stimulus” is MONEY PRINTING; to “bail out” anything and everything – but principally, bankers.  With such “benefits” come a LETHAL dose of DEBT and INFLATION – which only bankers benefit from.  This DEBT and INFLATION spreads like cancer across society; metastasizing rapidly, and causing irreparable damage.  Consequently, each new stimulus destroys more “healthy” cells; until ultimately, the law of “DIMINISHING RETURNS” is reached, causing PARALYSIS and DEATH; which sadly, is EXACTLY where the GLOBAL FINANCIAL SYSTEM is today.

Thus, from this day forward, whenever you hear the term “stimulus,” realize that society as a whole has been pushed one step closer to “economic death”; or as I often call it – FINANCIAL ARMAGEDDON.  The Mayans may not have gotten the date right – nor the specifics; but I assure you, the fact they picked NOW may one day be considered quite the coincidence.

Tweet
Rate :Average note :3.8 (4 votes)View Top rated
Previous article by
Andy Hoffman
All articles by
Andy Hoffman
Next article by
Andy Hoffman
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
MOST READ
TOP RATED
MOST COMMENTED
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Andy Hoffman

Andrew Hoffman was a buy-side and sell-side analyst in the United States (including six years as an II-ranked oilfield service analyst at Salomon Smith Barney), but since 2002 his focus has been entirely in the metals markets, principally gold and silver. He recently worked as a consultant to junior mining companies, head of Corporate Development, and VP of Investor Relations for different mining ventures, and is now the Director of Marketing for Miles Franklin, a U.S.-based bullion dealer.
Andy Hoffman ArchiveWebsite
Most recent articles by Andy Hoffman
8/1/2014
7/31/2014
7/31/2014
7/30/2014
7/30/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer