Category: Fiat Currency
The analysis published under this category are as follows.
Wednesday, June 24, 2015
When the Tide Turns Into Cash / Currencies / Fiat Currency
By: Dr_Jeff_Lewis
Here comes the “Better than Cash Alliance”.
So unless they can find a way to exempt themselves from this madness it will die in Congress.
The tighter they grip it, the more sand falls through their fingers.
Whistling past the graveyard for as long as they can, "living in the aborted moment". This will never work for simple reason.
Read full article... Read full article...
Sunday, June 21, 2015
The Twilight of Cash? / Currencies / Fiat Currency
By: Andy_Sutton
Many decades ago you could walk into almost any bank with a bundle of cash and exchange it for a predetermined amount of gold and/or silver. Cash was used because of its portability, light weight, and the confidence of the citizenry that it was as good as gold. I’m sure you already know where this is going. Fast forward to present day and look around you at the plight of cash. It is now redeemable for nothing, is essentially worth nothing, has zero intrinsic value, and despite ludicrous measures, is rather easily counterfeited. So the question I’m going to pose is this: Why oh why would banks, the USGovt, and the global establishment want to outlaw and abolish something that is already a proxy for slavery and servitude? The dollar (and all paper currency for that matter) has already fulfilled its predestined purpose. A dollar buys a nickel’s worth – quite literally – and still people will break their backs, sacrifice their families, and even take the life of another all in the pursuit of pieces of paper. Why is the establishment so against cash?
Friday, June 05, 2015
China's Five Year Plan and The End of an Era / Currencies / Fiat Currency
By: Alasdair_Macleod
China is in the late stages of constructing its thirteenth five-year plan, a process that commenced over a year ago and will result in a first draft in October. While the bulk of the plan will concern regional and domestic development, it is the international aspects that will concern the rest of the world. The plan, which will produce specific goals for 2016-20, is already having an effect on China's foreign and trade policy.
Read full article... Read full article...
Monday, May 18, 2015
Payments, Currencies, and Broken Money / Currencies / Fiat Currency
By: Dr_Jeff_Lewis
“If you want a vision of the future, imagine a boot stamping on a human face – forever.”- George Orwell
As an advocate for sound money, I am forever tormented by the egregious and overt growth of asset confiscation. The indirect tax from monetary inflation, bank bail outs and coming bail-ins, moral hazard, two tiers of justice accompanied by the gradual conditioning of the masses toward acceptance and true self denial.
Read full article... Read full article...
Thursday, May 07, 2015
The War On Cash: Governments Grabbing or Taxing Cash At Will Now / Politics / Fiat Currency
By: Jeff_Berwick
We have been warning for years that as bankrupt Western countries came closer to being completely insolvent that they would begin instituting capital controls, doing bank bail-ins, taxing cash and outright just stealing cash.
All of these things have come to pass now in one form or another. Here are four examples of the countless that we could choose from.
Read full article... Read full article...
Monday, April 20, 2015
The Rise of the Paper Machines / Stock-Markets / Fiat Currency
By: DeviantInvestor
Since 2011 the financial markets have been dominated by rises in paper markets and declines in commodity markets.
Group One Paper Examples: T-Bonds, US Dollar Index, S&P 500 Index
Group Two Commodity Examples: Crude Oil, Sugar, Wheat, Gold, Silver
Group One markets are “paper” markets in fiat debt, fiat currency, and paper equities. They are heavily influenced by “money printing,” Quantitative Easing, High-Frequency-Trading, futures, central banks, and political agendas.
Read full article... Read full article...
Friday, April 17, 2015
Sound Money on the Drifting Sands of Belief / Currencies / Fiat Currency
By: Dr_Jeff_Lewis
My kids just exited the stage where they still believe pretty much whatever I say. We had a decent track record for a while. It seems like just a moment ago when my son actually believed that I could fly. Belief can be constructive, powerful, and sometimes blinding. They arise from experience shaped by the stories we tell about them. Often the stories are told for us; and without contemplation we run with them.
Read full article... Read full article...
Tuesday, March 24, 2015
Global Currencies Teeter as Bonds Offer “Return-Free Risk” / Currencies / Fiat Currency
By: MoneyMetals
Stefan Gleason writes: Never before has holding bonds denominated in national currencies been more risky and less rewarding. That may seem like a provocative statement, but it’s not hyperbole. It’s the reality investors around the world now face.
Sovereign debt issued by Western governments sport record-low yields – in some cases, negative yields! Earlier this year the yield on the U.S. 30-year Treasury dipped to an all-time low of 2.25%. Meanwhile, despite talk of rate hikes to come, the Federal Reserve continues to keep short-term rates near zero.
Read full article... Read full article...
Thursday, March 19, 2015
The Paper Money Titanic Sinks At Dawn! / Stock-Markets / Fiat Currency
By: DeviantInvestor
What Titanic? The RMS Titanic, or any of the following:
- A titanic quantity of derivatives – say 1,000 Trillion dollars. A derivative crash was at the center of the 2008 market meltdown. It could happen again since there is now more debt, leverage, and risk than in 2008.
Friday, March 13, 2015
Lessons of History, Part 1: Not a Mention of Money / Currencies / Fiat Currency
By: John_Rubino
I’m listening to the audio version of George, Nicholas and Wilhelm: Three Royal Cousins and the Road to World War I, written by Miranda Carter and brilliantly narrated by Rosalyn Landor. It’s the story of some almost supernaturally dysfunctional governments blundering into a war that seems more rather than less crazy with the passage of time.
Read full article... Read full article...
Tuesday, March 10, 2015
Gold, Dollar and the Swiss Surprise / Currencies / Fiat Currency
By: Arkadiusz_Sieron
Let's step back in time. As we all remember, on January 15th, a surprise decoupling from the euro peg caused the Swiss franc to rally up to 23%, an unprecedented move in the currency market. Why was the peg introduced and later removed?
The SNB pegged the franc to the euro on September 6th, 2011, in the very middle of the Eurozone debt crisis. A few peripheral countries, whose debts had been downgraded to junk status, asked for bailouts. Therefore, investors ran from euros and moved into the Swiss franc, a traditional safe haven. The SNB introduced a minimal exchange rate at CHF 1.20 per euro (0.83 euro per franc) in order to resist the currency appreciation (the CHF gained 28% since the beginning of the Global Financial Crisis). Although gradual appreciation is positive and reflects the strength of a currency, sudden capital inflows and exchange rate fluctuations may be quite detrimental, and therefore the SNB began printing and selling francs to keep the currency from exceeding 0.83 euro.
Read full article... Read full article...
Friday, March 06, 2015
Euro Depreciation and U.S. Manufacturing / Economics / Fiat Currency
By: John_Rubino
The premise of a currency war is that by devaluing its currency a country is able to sell things overseas more cheaply, which gooses its growth at the expense of its trading partners.
If it actually works that way, then you’d expect this chart of the euro plunging against the dollar…
Read full article... Read full article...
Thursday, March 05, 2015
Mr. Ponzi – Patron Saint / Currencies / Fiat Currency
By: DeviantInvestor
Mr. Ponzi was a charming con-artist who operated about a century ago in the United States and Canada. He enticed investors to contribute new money to his investment scheme (100% return in 90 days), skimmed a portion for his luxurious needs, and used the remaining money to pay off prior investors. The system worked marvelously until it collapsed and people realized that his postal reply coupon investments could not produce the profits that supposedly paid off early investors.
Read full article... Read full article...
Sunday, February 22, 2015
Who Decides What Is Money? / Currencies / Fiat Currency
By: John_Rubino
The following is an edited excerpt from The Money Bubble: What To Do Before It Pops:
During a 2011 congressional banking subcommittee hearing, Texas congressman Ron Paul - long a champion of gold's role in the financial world - asked Federal Reserve Chairman Ben Bernanke if gold is money. "No," replied Bernanke, "It's an asset." Video of this exchange went viral in the gold-bug community, because the difference between money and an asset is, to people who care about such things, both profound and crucial to the future of the global financial system.
Read full article... Read full article...
Monday, February 02, 2015
What Comes After Paper Money, Part 1: Fiat's Obvious Failure / Currencies / Fiat Currency
By: John_Rubino
Business Insider just posted a Deutsche Bank chart that illustrates the difference between life under the Classical Gold Standard and today's "modern" forms of money. It's for the UK only but is a pretty good representation of the world in general:
Read full article... Read full article...
Saturday, January 31, 2015
Swiss Franc’s Euro-Peg Post Mortem / Currencies / Fiat Currency
By: Frank_Shostak
On January 15, 2015 the Swiss National Bank (SNB) announced an end to its three-year-old cap of 1.20 franc per euro. (The SNB introduced the cap in September 2011.) The SNB has also reduced its policy interest rate to minus 0.75 percent from minus 0.25 percent. The Swiss franc appreciated as much as 41 percent to 0.8517 per euro following the announcement, the strongest level on record — it settled during the day at around 0.98 per euro
Thursday, January 29, 2015
The End of Currency 'Safe-Havens' / Currencies / Fiat Currency
By: Julian_DW_Phillips
Swiss - Negative rates
In the past [even the recent past] investors have often 'parked' their funds in a 'safe-haven' currency, when fears about the dollar or other currencies rose. The leading candidates have always been the Swiss Franc and the Yen, with gold, in the last three years usually being excluded, because of its declining trend against the dollar and the limited amount of stock relative to the availability of these currencies. While gold's trend seems to have changed to the upside now, the developed world is still 'out of gold'.
Read full article... Read full article...
Saturday, January 24, 2015
Safe Haven 101 For Investors Concerned About the Future / Currencies / Fiat Currency
By: Ron_Holland
Dictionaries broadly define a safe haven as a place of refuge or sanctuary. I'm using the term to describe a hoped for place of security if a future catastrophe should take place. Possibilities include a major natural disaster, the coming end of the forced petrodollar scam, an unexpected major new war or civil disruption as the United States makes the always difficult transformation from leading world empire to a has-been nation heading downward on the stage of world history.
This has happened to all great empires that have gone this way before the Washington Empire and will eventually happen to all future global empires. It is the nature of all aggressive empires to overreach politically and militarily as well as in the economic sphere.
Read full article... Read full article...
Saturday, January 24, 2015
U.S. Dollar Denial Ain't Just a River / Currencies / Fiat Currency
By: Dr_Jeff_Lewis
Safe to say, with oil cut in half, precious metals prices contained below $20, and both housing and equities booming on little to no real economic growth, we are at peak ignorance in terms of monetary understanding. This cannot end well.
And yet for many who see the injustice, the inequality, or have dared witness the raping of justice on the way to this perception, the blame is too often misplaced. The sad reality is that those who are left to think about it come to the conclusion that the problem is capitalism - that more of the same should be implemented.
Read full article... Read full article...
Wednesday, January 21, 2015
The Swiss will not have more EU QE / Currencies / Fiat Currency
By: BATR
In the ridiculous charade that passes for the foreign exchange currency markets, the ease upon which a 39% spike in the Swiss Franc to the EU has most financial journalist puzzled. A flagship of establishment journalism like the Washington Post provides a quaint explanation in Why Switzerland’s currency is going historically crazy. The Swiss intend to keep their exchange rate at 1.2 Swiss francs per euro caused unsustainable negative competiveness in Swiss exports to EU customers. How many times have you heard that same old song? Corporatist media consistently spins a yarn that suppressing one’s own currency is good for business.