money

Forget about gold for the time being. Investors need to own cash - currency, simply as a hedge against the risk of another derivatives mess down the line.

So, the Fed has basically just announced it will stop QE2. It will then start selling Treasuries. And remember, this is at the same time the Treasury is selling $10 billion a month in mortgage securities. Only after this will rates be…

I ran across a post by Robert Murphy over at the Mises Institute blog on Modern Monetary Theory. Since I have been pushing the idea that the centrality of secular debt accumulation makes some ideas from MMT and Austrian Economics…

QE is, in fact, a ‘crop failure’ for the dollar. The Fed’s shifting of securities out of the economy and replacing them with clearing balances removes interest income. And the lower rates from Fed policy also reduces interest paid to the…

We debated whether to call Section 3 "Devaluation & Transformation" or 'Transformation and Devaluation" because we could not be sure (or possibly know) which would be generally recognized first. We finally opted for "Devaluation and…

Is there a viable currency to replace the US dollar when over-leverage, economic imbalances and consequent money printing ultimately lead to an overwhelming decline in confidence in the dollar as a store of value?

Despite pumping trillions of yen into the economy over the last decade, Japan's M3 money stock is no higher now than it was at the beginning of the last decade as the private sector has deleveraged.

The following is the second in a series of posts by QB Partners on the dollar standard monetary system. The first post is available for review at Credit Writedowns. In section 1, we tried to lend perspective to the current global monetary…

Michael Pettis argues that Reserve currency status is a global public good that comes with a cost, and people often forget that cost.

The press is reporting that China plans to set up new investment funds that will put some of its $3 trln in foreign reserves to work in energy and precious metals. The PBOC is also reportedly studying a proposal to set up some sort of…