Saturday, December 02, 2017

Trump Wins One

Trump probably stayed up until 1:50 a.m. last night (this morning) to hear that the Senate passed the tax reform bill, 51 to 49.  For a businessman, the government workings must be trying, to say the least.  Here's my imagination's thinking about the moment.

Trump's late night TV thoughts
(Click on the image for a larger version.)

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Friday, April 21, 2017

Finally! Gold-backed currency is arriving

Edward C. Harwood predicted that some day the world would see a currency based on metric units of gold.  He didn't know what form it would take, but he felt certain that it would happen.  (Read about his Institute here.)

Now please read this piece of news.

I can't wait until this new currency is available to the public.

Then we'll have to see how governments react.  Will they allow them to exist if they become popular?  I suspect not.  They depend too much on controlling the fiat money we now use.  If this type of currency were to replace dollars or other currencies in many transactions, they will certainly do something to put a wrench in the works.


Saturday, July 30, 2016

Richard Duncan's Solution to our Current Worldwide Debt Crisis

Richard Duncan is an interesting fellow.  His eyesight seems 20/20 when it comes to analyzing how we got where we are today.  Yet his solution is unthinkable to me.

If you are curious, please listen to this hour-long interview.  It will get you thinking and you will learn a lot about many aspects of today's economic conundrum. However, in my opinion, Mr. Duncan errs in believing that it is possible to stave off catastrophe.

Here is the interview:

Richard Duncan interview

He is basically recommending that the developed world throw gasoline on the fire of fiat money creation.  He says we must maintain the current level of world GDP through enormous debt creation (i.e. more QEs) and through government investment in infrastructure and technological projects. By doing this he hopes that the resulting advances will somehow allow us to avoid a worldwide crisis that would take the form of either a world war or a global depression like none we have ever seen.

His solution completely flies against all of my own economic theories–indeed against common sense itself. He sounds to me like Louis XV with his "après moi le déluge" (after me the deluge).

[Thanks to Wikipedia]
Surely, these credit/debt bubbles must burst. I believe that the longer we put it off, the worse it will be, and that we've already gotten to the stage where the war or depression or both are inevitable.

Yet he seems to think catastrophe can be staved off, and that the politicians will try this because they have no other choice. About that he is surely right, but is he right that the times have changed and we must modify our thinking? Or is this just putting off judgment day?

Please let me have your thoughts.

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Friday, February 12, 2016

Fiat Money Versus Gold

Thanks to

No one can deny that current markets are scary, so I have opined in an article at Seeking Alpha. 

We all share the malaise as this unfolds in front of our eyes.

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Monday, December 07, 2015

Hubris at Its Best - Central Bankers

In last weekend's Wall Street Journal I read yet another ridiculous statement by a member of that elite group called Central Bankers.  They make me chuckle every time they open their mouth. 

How many times do we have to hear that Madame Yellen or Monsieur Draghi has everything under complete control?  Take this for example from the latter:

"There is no doubt that if we had to intensify the use of our instruments to ensure that we achieve our price stability mandate, we would."

Right.  All Europe's economy needs is a little tweak here and a little monetary push there.  Especially after Japan and the U.S. have done this so "successfully"–which, by the way, was after completely missing the Great Recession even when it was staring them in the face. 

In fact the U.S. has been so "successful" that now they can't figure out when and how to turn it off. 

I can't help but wonder about the ending of this charade.  So I allowed my imagination to wander.  Here's the result.  (Click on the image for a larger version.)

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Tuesday, November 03, 2015

Fed Dots - Tea Leaves By Another Name? or alternatively, The Dot Plot Thickens

My previous post mentions tea leaves as a way for the Fed to determine policy.  I bet you thought I was kidding.  Well, watch this video to see what Fed-watchers are watching.  And just in case you're wondering, it's not a comedy sketch.

[Screen capture from Bloomberg]
[Thanks to J.B. for the neat alternate headline.]


Tuesday, October 27, 2015

Advice for Ms. Yellen

I looked at the first page of the Wall Street Journal today, there to find an article about our favorite gurus, the Federal Reserve Board.  Most market players are predicting that the Federal Reserve Board will do nothing this year about interest rates.

The article contains a really fascinating exchange between William Dudley, president of the New York Fed bank, and John Taylor, an economist of extraordinary common sense, judging from the exchange:

Dudley:  "I don't really understand what is unclear right now."

Taylor:  "Are you kidding?  No one knows what you are doing."

In fact, I would conjecture that the Board itself does not know what it is doing.

Therefore, I suggest that Ms. Yellen and her co-gurus take counsel from the following page:


Surely reading tea leaves will be more accurate than relying on the pseudoscience of econometrics.


Wednesday, January 21, 2015

Why Gold Is Still Attractive As A Hedge

If you'd like to read a Gadfly's opinion about holding gold-related investments, please read this article at Seeking Alpha.  Thanks.

[Image from Wikipedia]


Tuesday, January 20, 2015

I have just finished one of the best books I've read in a very long time.  It is this:

Investing Freedom: How the English Speaking Peoples Made the Modern World by Daniel Hannan
Click on the line above to get it from Amazon.  Excellent read.

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A Talk on C..S. Lewis

David Theroux of the Independent Institute asks me to post to his keynote talk at a conference in San Antonio, TX, on August 2, 2014.  I'm happy to oblige.  The title is:

"C.S. Lewis on Mere Liberty and the Evils of Statism"


Click Here

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