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World Reserve Currencies: What Happened During Previous Periods of Transition?
 

World Reserve Currencies: What Happened During Previous Periods of Transition?

  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 […]

Why Does a Trade Deficit Weaken the Currency and Make the Country Poor?

Currently, the US economy consists of approximately 77% services, which contributes to major imbalances to their economic system and not to mention a massif trade deficit (imports exceeds exports ). The picture below depicts dark countries with trade deficits and greener countries with trade surpluses. The US trade deficit was over 550 Billion in 2011, […]

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Posted in Gold and Silver, US Dollar Collapse

Central Banks Are Buying Gold, Are you?

The World Gold Council have recently published their second quarter 2012 report. The report indicates that the demand for gold reached 990 tons for the second quarter of this year. This figure is down 7% from the same quarter in 2011, and down 10% below the previous quarter. Although weaker demand was mainly contributed by […]

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Posted in Economic Crisis, Gold and Silver, US Dollar Collapse

U.S Government Debt Grows $10M a Minute

David Walker, served as the United States general comptroller from 1998 to 2008 and he was recently on Yahoo news stating his case for America’s debt problem. The current national debt for the United States stands at a whopping 15.9 Trillion and growing at about 10Million a minute. In other words, 14.4 Billion a day […]

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Posted in US Dollar Collapse

Why the True Capitalists Want You to be Rich

In the media, “the rich” are depicted as self-centered, uber-greedy scoundrels, and while individuals like Gordon Gekko (“Wall Street”) certainly do exist, the vilification of the rich is not exactly warranted.  Many successful–and indeed, rich–entrepreneurs use the law of compensation to further expand their businesses and stream of wealth. And because it is you, the […]

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Posted in Economic Crisis, US Dollar Collapse

Mo Government is Mo Problems

In reaction to the European debt crisis, we have seen sophisticated and coordinated efforts by European leaders to come together to create more government and more intervention. More government, however, has been shown to only aggravate the current economic and political atmosphere. Why must government get out of the way?  Limited government means limited power and […]

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Posted in Economic Crisis

The Ponzi Scheme in Canada’s Housing Bubble

Canadian mortgage requirements tightened in recent weeks from a maximum amortization period of 30 years to 25 years, the consequences of which will serve to undermine the currently bloated real-estate market as less buyers will be able to enter into the market as mortgages become more expensive (assuming a same down payment). How is this […]

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Posted in Housing Bubble

Fractional Reserve Banking System

Most people believe that banks safeguarded their deposits in their vaults and maintain a liquidity ratio on or about 100%. In other words, banks only lend out the money which they had on deposits. However, today’s banking system reality is far different, posing a great risk for all economies going forward. What is a Fractional […]

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Posted in Housing Bubble, US Dollar Collapse

Why Do People Invest in Real Estate?

As mentioned in a previously article “the flow of money” money tends to flow in the path of least resistance. At the end, government officials with the financial bribes of lobbyists groups foolishly decide where investments should be re-directed instead of the free-market at the bennifit of major corporations. For instance, Real –Estate in Canada and in […]

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Posted in Housing Bubble

Economic Stimulus From the FED – Twist 2.0

As inflation was tame, stocks prices went lower, and unemployment higher, many investors thought that another round of Quantitative Easing would be on the top of Fed chairman Ben Bernanke’s to-do list. Instead the FED once again reintroduced Operation Twist where a swapping of short- and long-term bonds, would lower the longer term bond yields […]

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Posted in Economic Crisis, US Dollar Collapse

How Will Canada Be Affected by US Inflation?

Much has been stated about the stability of the US Dollar in recent year, as the federal reserve continues to pursues reckless economic polices i.e. using the printing press at full speed to inflate the money supply. Printing currency destroys the value period of money. Although, how will other fiat currencies par with the debasement […]

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Posted in US Dollar Collapse

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