| Whither Gold - Antal E. Fekete - Gold University |
The year 1971 was a milestone in the history of money and credit. Previously, in theworld's most developed countries, money (and hence credit) was tied to a positive value:the value of a well-defined quantity of a good of well-defined quality. In 1971 this tiewas cut. Ever since, money has been tied not to positive but to negative values – the value of debt instruments. |
Tuesday, March 2, 2021 |
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| Greenspan has taken the horse to the water - Antal E. Fekete - Gold University |
Note that the Fed's contingency plan to steer away from hyperinflation is essentially deflationary. It is designed to massacre all short sellers of dollars mercilessly by relentlessly pushing interest rates further down. The trouble with this plan is that it makes bond speculation on the long side of the market risk-free. If you now recall that speculators |
Saturday, February 27, 2021 |
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| Correcting Antal Fekete's Historical Silver Errors (19) - David Morgan - Silver Investor |
In "The Double Whammy of Geopolitical Gold Games reposted in February 2013
(from January 31, 2008) by Antal
Fekete he stated some errors of fact! Marco Polo, guide us on this excursion
to China! Bruce Lee, help our reflexes to be as fast as yours! May we not be
slap happy like Jackie Chan! Wo Fat, do not mislead us! Antal mentioned China's
silver money system going back to the 16th century, then stated"
"CHINA'S EXTERNAL TRADE WAS INSIGNIFIC |
Wednesday, February 24, 2021 |
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| Tsunami In The Bond Market (4) - Antal E. Fekete - Gold University |
The check-kiting scheme between the U.S. Treasury and the Fed, that has been going on quite openly for some 35 years, may have now been supplemented with another, this time between the Fed and the Bank of Japan, conducted in high secrecy. It involves the conspiratorial exchange of non-interest-bearing yen balances for interest-bearing Treasury debt in ever greater volume, over and above the need to finance the American trade deficit with Japan, huge as the latter may already be. The purpose of the conspiracy is to forestall a run on the dollar by other central banks and foreign exchange |
Tuesday, February 23, 2021 |
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| The Principle Of The Gold Standard - Antal E. Fekete - Gold University |
Once upon a time the standard of measuring length, the foot, was defined in China as the length of the foot of the emperor. A change of the standard occurred upon the death of the old emperor, as a proclamation heralding the length of the foot of the new emperor was made. Later emperors discovered to their delight that they did not have to die in order to bring about a change of the standard. Imperial pleasure could proclaim a change in imperial footage at any time. |
Tuesday, February 16, 2021 |
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| Hedging Non-Gold Investments With Gold - Antal E. Fekete - Gold University |
The cliché that the present credit collapse is "the greatest financial crisis since 1929" is the understatement of the century. One measure of the crises is the ratio of gross private debt to nominal GDP. This ratio captures the idea how many years of current output it would take to retire outstanding debt. In these terms, the crisis is truly unprecedented. The world plunged into the present crisis with far greater debt than the debt outstanding at the time when it plunged into the Great Depression in 1929. Add to this the qualitative change in the structure of debt. The most exotic of the Roaring Twenties era debt was brokers' margin lending on the stock purchases of clients. Today, in addition, we have: (1) derivative instruments valued up to one quadrillion dollars, (2) adjustable-rate mortgages, ( |
Saturday, February 13, 2021 |
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| When Atlas Shrugged… Part Two : Gibson’s Paradox and the Gold Price (7) - Antal E. Fekete - Gold University |
The constant marginal utility of Gold is the property that makes gold ‘most hoardable’. That there is a limit to gold hoarding is due solely to the institution of interest. The opportunity cost of hoarding gold is just the lost interest. This is a distinctive property of gold. The hoarding of all other goods is limited by declining marginal utility |
Wednesday, February 10, 2021 |
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| Silver and Opium (49) - Antal E. Fekete - Gold University |
From the mid-17th century more than 9 billion Troy ounces or 290 thousand metric tons of silver was absorbed by China from European countries in exchange for Chinese goods. The British introduced opium along with tobacco as an export item to China |
Saturday, February 6, 2021 |
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| Quartermasters of Inflation - Antal E. Fekete - Gold University |
hat central bankers are the quartermasters of inflation is no longer a controversial assertion. That much was admitted by central banker Alan Greenspan in his speech before the Economic Club of New York on December 19, 2002 (see: www.federalreserve.gov/BoardDocs). He observed that as long as the gold standard was in charge of money-creation the price level was relatively stable. For example, in 1929 it was hardly different from that in 1800. But, after gold was banned and central bankers were put in charge in 1933, the consumer price index nearly doubled in two decades. And in the four decades after that prices quintupled. In other words, under the watch of the gold standard the dollar preserved its p |
Thursday, February 4, 2021 |
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| UNEMPLOYMENT: Human Sacrifice on the Altar of Mammon (3) - Antal E. Fekete - Gold University |
The Great Depression of the 1930s bringing unprecedented world-wide unemployment in its wake was not caused by the “contractionist nature” of the gold standard as alleged by John M. Keynes. Nor was it caused by “fractional reserve banking” as alleged by Murray N. Rothbard. It was caused by national governments sabotaging the clearing system of the international gold standard, the bill market, thereby destroying the wage fund of workers employed in the production and distribution of consumer goods. In throwing out the bath-water of real bills governments have thrown out the baby of full employment. Unemployment is the modern version of the earlier religious practice of making human sacrifice on the altar of Mammon |
Wednesday, February 3, 2021 |
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| Growth And Debt: Is There A Trade Off - Antal E. Fekete - Gold University |
The Obama administration apparently believes in a trade-off between growth and debt. It wants to stimulate fast growth and is willing to pay for it in the form of unprecedented increases in government debt, because it fully expects the growth to rake in tax revenues with which the debt can be retired. It invokes the experience with debt retirement after World War II. When the war ended, government debt stood at 120 percent of the gross national product, twice what it is now. The rapid economic growth during the 1950’s and 1960’s quickly reduced the debt. This is offered as a justification for the $800 billion stimulus package that is being railroaded through Congress, with |
Tuesday, February 2, 2021 |
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| Double Jeopardy - Antal E. Fekete - Gold University |
The Constitution protects the citizen against "double jeopardy", that is, the judicial arm of the government cannot inflict harm on the citizen twice for one and the same reason. Apparently, the principle of double jeopardy does not apply to the monetary arm of the government |
Monday, February 1, 2021 |
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| Opening the Mint to Gold and Silver (3) - Antal E. Fekete - Gold University |
In my last article I suggested that the superpowers China, Russia, and the United States may be, without they knowing it, racing towards reopening their Mints to the monetary metals. The governments of these countries are like the heroes of Greek tragedies: they are drawn to their fate by destiny. There is no way for them to avoid Kismet, regardless of what they do. Many readers have asked me to explain what the term „opening the Mint to the unlimited coinage of gold and silver free of seigniorage charges” means. |
Saturday, January 30, 2021 |
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| The Gold Demonetization Hoax (5) - Antal E. Fekete |
According to official doctrine gold was demonetized in 1971 by the “Group of Seven,” governments of the most important trading countries of the world. Demonetization was meted out as a punishment for “bad behavior.” In the words of Paul A. Volcker, gold has been tolerated as long as it was content to act as a constitutional monarch. No sooner had gold asserted itself as an absolute monarch than it was dethroned. Indeed, by a stroke of the pen the 5000-year-old monetary reign of gold was unceremoniously terminated over |
Friday, January 29, 2021 |
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| How to stop the Depression (6) - Antal E. Fekete - Gold University |
Capital erosion is not natural nor is it inevitable. Rather, it has been inflicted upon the world economy by the unmindful and irresponsible monetary policy of the United States in deliberately driving the rate of interest to zero. |
Tuesday, January 26, 2021 |
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| The Revisionist Theory and History of Depressions (4) - Antal E. Fekete - Gold University |
An accounting principle, the Law of Liabilities, asserts that a firm ought to carry itsliabilities in the balance sheet at its value upon maturity, or at liquidation value,whichever is higher. This Law is ignored by present accounting standards. The result is arise in the liquidation value of debt, erosion of depreciation quotas, and wholesaledestruction of capital under a falling interest-rate structure caused by a faulty monetarypolicy, hailed as the savior, but which should be condemned as the destroyer.
Recognizing the Law of Liabilities may help us to understand deflations and depressionsbetter. |
Saturday, January 23, 2021 |
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| The Double Whammy of Geopolitical Gold Games (27) - Antal E. Fekete - Gold University |
Even the most rabid silver bugs admit the possibility that the Chinese are the Big Silver Shorts. This suggests that the Big Gold Shorts are also governments. Neither are naked by any stretch of the imagination. The double whammy of gold and silver accumulation by unnamed governments is the big puzzle of the present financial crisis in the world as it holds the key to the resolution. |
Friday, January 22, 2021 |
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| Peak Gold ! - Antal E. Fekete - Gold University |
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Sunday, January 17, 2021 |
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| Uncle Sam crying “Uncle” (5) - Antal E. Fekete - Gold University |
Many of my correspondents think that either hyperinflation or deflation is in store for the dollar; tertium non datur (no third possibility given). I would say tertium datur. |
Sunday, January 17, 2021 |
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| The Gold Standard Strikes Back… (9) - Antal E. Fekete - Gold University |
There were two main direct assaults on the gold standard by the American government: the first on the watch of a Democratic president, Franklin D. Roosevelt, when the U.S. defaulted on its domestic gold obligations in 1933; the second on the watch of a Republican president, Richard Nixon, when the U.S. defaulted on its international gold obligations in 1971. In each case, the gold standard struck back. Uncannily, in each case there was a lag of 36 years, signifying the fact that it takes that long for a new generation to acquiesce in the slogan “two legs bad, four legs good!” as in George Orwell’s Animal Farm, a parody of the Soviet Union and the Bolshevik revolution. It will be recalled that the pigs have overthrown the farmer and took over the farm, trying to run it under this revolutionary slogan. |
Saturday, January 16, 2021 |
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