money

This week we examine coinage from Roman times to the present in Western society.

“Taxes drive money”—these “money things” are accepted because there are taxes “backing them up”, not because they have embodied gold. As promised, this week I will begin try to dispel the view that coins used to be commodity monies.

We repeat: the “debt problem” is a currency problem and the currency must and will collapse. The global monetary system exists at the pleasure of the Fed, which legally exists at the pleasure of Congress, which as we have learned only has…

On July 13, 2011 Chairman Bernanke explained: "The reason people hold gold is protection against tail risk, really, really, bad outcomes. To the extent that the last few years have made people more worried about the potential of a major…

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…

In broad strokes, today's investment world seems to be divided into two large groups - gold optimists who expect the metal price to keep ascending, and skeptics concerned about a near end to the gold bull market. In this brief overview we…

This post explains both the wellspring and the significance of currency sovereignty, something that Eurozone countries gave up to join the single currency.

The S&P has gone from 2 standard deviations below the 20-day moving average on the 16th June to 2 standard deviations above it now, something it did prior to the 87 crash when it rallied 6.4% in the week prior to the crash. It has been…

The Fed is stuck at permanent zero and that means the carry trade is on. If we did have another panic, those swap lines would be handy because the Fed would again become the global lender of last resort.

Evangelos Venizelos is dispatched to consider how to prevent the government from sacking tens of thousands of workers in order to prevent the Greek from defaulting on its debt. He suggests that California’s previous IOU issuance is a model…