The decline of the US dollar hegemony is ever so clear today and this article aims to provide the reader with what exactly happened during past periods of reserve currency transitions. Historically, when a reserve currency transitioned over to a new one, it marked a pivotal change for the world. The economic paradigm shifted […]
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 on 08 March 2012.
Unions are considered advantageous to the worker, since their main functions include pushing for higher worker’s salaries and benefits. This, unfortunately, is an illusion: the extra jobs that must be created to administer the unions and the power that some unions acquire outweigh any benefits to the worker in hindsight with the whole local economy. […]
Posted in Housing Bubble
Posted on 11 February 2012.
The first thing I learned in my Thermodynamics class as a young engineering student was that energy can neither created nor destroyed, only transferred. During the course of my research, I have seen how this concept applies equally to wealth: Wealth is neither created nor destroyed, it is only transferred. Depending on the current environment, […]
Posted in Gold and Silver
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 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 Collapse
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 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 Collapse
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