2011

In my view, fiat currency is a confidence trick. The key to confidence in a fiat currency is the belief of citizens that the government issuing the currency will manage its finances in a way that promotes general “life, liberty and…

There is, and historically has been, some confusion surrounding sovereign currency. So, many policy makers and economists have had trouble understanding why the private sector would accept currency issued by government as it makes…

Central Falls, Rhode Island faces a plight that should be studied for its application elsewhere. It is nearly out of money. This is common news today, whether in Greece or California. The various parties are assumed to possess a means to…

Technology guru Vivek Wadhwa of Duke University and Paul Kedrosky, a noted investor and analyst in the tech and finance space debated whether there is a bubble in technology shares on Friday. The interview is very good, so I am posting it…

Dollar and other safe havens remain firm amid EZ uncertainties; stocks and commodities retreat. The week ahead is likely to be dominated by EZ summit, debates surrounding US budget and earnings. EM investors continue to focus on the…

If you had to start an online social network from scratch, how would you do it?

According to Der Spiegel, Helmut Kohl, the father of a unified Germany and the German politician most responsible for the single currency, is very unhappy with his protégé Angela Merkel. I found this article to be consistent with what I…

It turns out that China is not willing to pay whatever it has to for energy and metal resources. Several resource deals have faltered in recent months, indicating an increasingly choosy Chinese perspective on energy and metal acquisitions.…

If you are an investor, businessperson or employee, what you care about is outcomes. You want to know what’s likely to happen in the economy and in the markets. That is what this site is all about. What I see says that cuts were coming.…

The research presented below from the IMF from October 2010 "finds that fiscal consolidation typically reduces output and raises unemployment in the short term. At the same time, interest rate cuts, a fall in the value of the currency, and…