As mentioned in my previous post, “Effects of Low Interest Rates Part 1,” the easy monetary policies created by central banks and governments is what fuels economic booms and their consequent busts. Keynesian government intervention skews the business cycle: the creation of credit expansion undoubtedly provides growth, but this growth is now part of an […]
Archive | US Dollar Collapse
Effects of Low Interest Rates – Part 2
Posted on 22 May 2012.
Posted in Gold and Silver, Housing Bubble, US Dollar Collapse37 Comments
Petrodollar Collapse
Posted on 09 May 2012.
The rise of the United States economy in the 70’s and 80’s was mainly due to Nixon’s abolished the gold standard. This event was historic as it allowed the green back to be . Although, as in history, allowing a currency to freely float in thin air will eventually cause inflation from easy monetary policies […]
Posted in US Dollar Collapse1,935 Comments
Effects of Low Interest Rates – Part 1
Posted on 26 March 2012.
Lowering interest rates can potentially boost economic activity as it increases both speculation and exports by devaluating the currency. Its effects, are artificial and temporary, at best. New growth caused by cheaper money must come from somewhere, and as I pointed out in another article “Fiat Currencies” this money comes at the expense of the […]
Posted in Housing Bubble, US Dollar Collapse425 Comments
Economic Forecast for 2012
Posted on 11 January 2012.
As I stated in my previous article titled “Will there be a QE 3?”, weak market data coupled with negative market sentiment is being reflected in the stock market. 2011 was a dismal year for most stock investors. The chart below depicts the 2011 rate-of-returns for different asset classes. Also, our governments may decide to […]
Posted in Gold and Silver, Housing Bubble, US Dollar Collapse28 Comments
Economic Reasoning; A Two-Faced Coin
Posted on 08 December 2011.
What benefits a ‘part’ but devastates the ‘whole’ is ultimately detrimental to all components of the entity. A government policy that benefits one group of society while undermining the economy as a whole is destined for failure. To understand economics all interactions among all groups must be accounted for; the impact of a policy on […]
Posted in US Dollar Collapse1,687 Comments
Will There Be a QE3?
Posted on 25 November 2011.
Quantitative easing. The irony of such a concept is that to the uninitiated in economics, quantitative easing would be perceived as something good for our system, when in reality it undermines our economy by preventing it to function as a free market. A quantitative easing program is but a more sophisticated way of saying “money […]
Posted in Gold and Silver, US Dollar Collapse1,624 Comments
Fiat Currencies; The Demise of Our Economic System
Posted on 08 November 2011.
Up until 1971, real money was known as gold and silver bullion and coins. With the help of Richard Nixon’s abolishment of the gold standard (Breton –Woods agreement, 1971), today our money is known as fiat currency, which has been adopted by every country in the world. Gold as money has existed for over 5000 […]
Posted in US Dollar Collapse875 Comments
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