Tag Archive: Finance

Gold is the 7th sense of financial markets

As we embark on this new decade, there are plenty of good reasons to be optimistic about gold’s prospects. The global economy and the financial system are already stretched to a breaking point and demand for precious metals is heating up. This, of course, is plain for all to see, even as mainstream investors and analysts still refuse to face facts and prefer to focus on naïve hopes of an eternal expansion.

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Ein rationaler Erklärungsansatz für negative Zinsen

In einem Beitrag auf LinkedIn am 29. Dezember 2019 wirft Prof. Erwin Heri von der Universität Basel in die Runde, dass negative (Real-)Zinsen möglicherweise vernünftig sind. Sie wären das natürliche Ergebnis der Präferenzen der Wirtschaftssubjekte – und nicht primär das Ergebnis einer Manipulation von Zentralbanken.

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Is the SNB In Control of the Amount of Sight Deposits?

The current monetary environment in Switzerland is as far from ordinary as can be imagined: negative interest rates (from -0.75% in the short term to -0.25% for 50Y govt bonds) and oceans of liquidity (M0 has grown to 50% of M3 from pre-crises levels of around 8%).

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Das Internet – die dezentrale (R)Evolution

Menschen werden durch unterschiedliche Motive angetrieben. Die einen sehen das höchste Glück in der Ansammlung von materiellen Werten, und andere sind von geistigen Werten angetrieben. Eine Idee kann genauso wie eine Rolex Glücksgefühle und Ansporn auslösen. Mich persönliche treiben Ideen an.

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What lies ahead for gold in 2020

Over the last few months, gold’s performance has been remarkable. Many market observers and mainstream analysts have pointed to various geopolitical developments in their efforts to explain away the bullishness as a reaction to whatever happens to be in the headlines at the time.

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Investing in crypto the sound way!

I have long been fascinated by the far-reaching consequences and the great potential of the wave of new technologies and ideas that emerged with the crypto revolution. While most of us first came into contact with these concepts in 2017, this tectonic shift that is only just beginning has been in the making for nearly a decade. Now, we begin to see the basic ideas and tools take shape and give rise to endless exciting possibilities that can affect...

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The owl has landed: Lagarde’s new vision for the ECB

On December 12, Christine Lagarde introduced her goals and vision in her first rate-setting meeting as the new President of the ECB. On the actual policy front, there were no surprises. She remained committed to the path set by her predecessor, Mario Draghi, and kept the current monetary stimulus unchanged.

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Corporate Debt Time Bomb

While I have reportedly highlighted the many risks of the current monetary policy direction and the multiple distortions that it has created in the markets, in the economy, and even in society, one of the most pressing dangers of the unnaturally low rates and cheap money is the staggering accumulation of debt. Nowhere is this more obvious than in the ballooning corporate debt, especially in the US.

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The destruction of civilization – implications of extreme monetary interventions

When I was asked to write an article about the impact of negative interest rates and negative yielding bonds, I thought this is a chance to look at the topic from a broader perspective. There have been lots of articles speculating about the possible implications and focusing on their impact in the short run, but it’s not very often that an analysis looks a bit further into the future, trying to connect money and its effect on society itself. 

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The ECB’s “mea culpa”

Economists, conservative investors and market observers have been issuing stern warnings for years regarding the severe impact of the current monetary policy direction. In a recent statement, ECB Vice President Luis de Guindos warned of potential side effects and risks to the economy resulting directly from the central bank’s policies.

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The Evolution Of The Bank Run

There are numerous and wide-ranging reasons why someone may choose to invest in physical precious metals. A deep understanding of monetary history provides plenty of solid arguments, and so do the mounting geopolitical risks, the spiking probability of a recession and the long-term goal of many conservative investors to safeguard their financial self-determination.

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“We don’t have to behead the king if we can just ignore him” – Claudio Grass

“Negative interest rates are unsustainable and once investors decide to stop paying for the privilege of holding government debt, a banking crisis could result, says James Grant.” Returning SBTV guest, Claudio Grass, speaks with us about the unsustainable pensions, crumbling fiat currencies and a looming financial crisis in a world of insane central bank monetary policies.

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QE by any other name

“The essence of the interventionist policy is to take from one group to give to another. It is confiscation and distribution. “ – Ludwig von Mises, Human Action In less than a year, we have witnessed an unprecedented monetary policy rollercoaster by the Federal Reserve, which began with a momentous U-turn in the central bank’s guidance in January, and has continued to escalate ever since.

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The Growing Opposition Against the ECB

Few investors and market observers were really surprised when Mario Draghi announced the ECB’s next massive easing package in mid-September. Cutting rates further into negative territory and the revival of QE were largely expected sooner or later, as the “whatever it takes” outgoing ECB President is now faced with a wide economic slowdown in the Eurozone.

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A buying opportunity in precious metals

After a remarkable run over the past few months, gold and silver now appear to have entered a period of consolidation. Many speculators and short-term focused investors have sold their positions fearing a correction, while mainstream market commentators fuel these fears, with analyses that proclaim “the end of the road” for gold and silver.

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A turning point in the bond market?

We’ve recently seen a lot of coverage and even more “expert analyses” on the state of the bond market, to the extent that the average investor, or the average citizen for that matter, is likely to be overwhelmed and very confused about what it all means. Experts from the institutional side and defenders of the current monetary direction argue that it is all the result of policy choices, that’s it’s all under control and that we really shouldn’t...

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“The Eurozone faces the worst combination of economic and systemic risk”

The past few months have been an exciting time for gold investors, as the precious metal has seen a spike in demand after serious economic concerns and geopolitical tensions unsettled the markets. Many mainstream analysts have pointed to a number of recent events, from the US-China trade war escalations to the inverted yield curve, to explain the recent gold rally.

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THE FED’S CAPITULATION: WHAT IT MEANS FOR GOLD INVESTORS

After the Federal Reserve’s monetary policy U-turn earlier this year and the central bank’s decision to cut interest rates for the first time in a decade, mainstream investors and analysts believe that holding rates lower and for longer will help keep stock markets afloat and the economic expansion alive.

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“More of the same” at the ECB increases gold’s appeal

“The intellectual leaders of the peoples have produced and propagated the fallacies which are on the point of destroying liberty and Western civilization.” Ludwig von Mises, Planned Chaos. It took multiple meetings and over 50 hours of official negotiations for EU leaders to reach an agreement on the appointments for the top jobs of the EU and the ECB, but in mid-July the results finally came in.

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All this borrowing to consume is unsustainable and the bill is overdue

June has been an interesting month for gold, as geopolitical events, market fluctuations and developments on the monetary policy front fueled an exciting ride for the precious metal. As long-term investors with a strict focus on the big picture, short-term moves and speculative angles are largely irrelevant in and of themselves, but they do provide important signals that, without fail, confirm the strategic superiority of precious metals holdings...

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