Tag Archive: Monetary

“The illusions of Keynesianism create a morally corrupt society” – Part II

Claudio Grass (CG): Overall, apart from the obvious economic consequences of the crisis, do you also see geopolitical and social ones, on a wider scale? Given all these “moving parts”, from the upcoming US election and internal frictions in the EU to the Hong Kong tensions and the rising public discontent in Latin America, where do expect the chips to fall once this is over? 

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The War On Cash – COVID Edition Part II

The digital “toll” It doesn’t require too dark an imagination to realize the gravity of the concerns over the digital yuan. China is a true pioneer when it comes surveillance, censorship and political oppression and the digital age has given an incredibly efficient and effective arsenal to the state. Adding money to that toolkit was a move that was planned for many years and it is abundantly clear how useful a tool it can be for any totalitarian...

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Technocracy vs Liberty

“I prefer true but imperfect knowledge, even if it leaves much undetermined and unpredictable, to a pretense of exact knowledge that is likely to be false.” Friedrich August von Hayek

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An unexpected blow to the ECB

Since the beginning of the year, the corona crisis has come to monopolize the news coverage to the extent that a lot of very important stories and developments either went underreported or were ignored altogether. One such example was the very surprising ruling out of the German Constitutional Court in early May, that challenged the actions and remit of the ECB.

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“We are expecting a new wave and we’re prepared for it.”

Interview with Robert Hartmann, Co-Owner ProAurum, Over the last couple of months, we’ve witnessed unprecedented changes in the global economy, in the markets and in our societies. The corona crisis and the governmental measures that were introduced had a dramatic and direct effect on all of us, as investors and as citizens. 

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Hard talk with Václav Klaus: “The people should say NO to all of it.”

As we get deeper into this crisis and we get used to our “new normal”, it’s easy to focus on the daily corona-horror stories in the media or the latest shocking unemployment numbers, and lose track of the bigger picture and of what is really, fundamentally important. Even as the lockdown measures begin to get phased out, the scale of the economic damage is unimaginable and the idea of returning to “business as usual” is no longer tenable.

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Nothing Is What It Seems

My latest interview about Corona, Liberty, Private Property, Authoritarism, and a fear-mongering global media campaign, which I call borderline criminal [embedded content]

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The Out Has Not Yet Begun to Fall, Market Report 31 March

So, the stock market has dropped. Every government in the world has responded to the coronavirus with drastic, if not unprecedented, violations of the rights of the people. Not to mention, extremely aggressive monetary policy. And, they are about to unleash massive fiscal stimulus as well (for example, the United States government is about to dole out over $2 trillion worth of loot).

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A crisis is a terrible thing to waste – Part I

“You never want a serious crisis to go to waste. And what I mean by that, it’s an opportunity to do things you think you could not do before.” -Rahm Emanuel, Barack Obama’s Chief of Staff from 2009 to 2010. Only a couple of weeks ago, if anyone told you that your entire country would be basically shutting down, that events and public gatherings would be outlawed, that you’d be looking at empty shelves in your local supermarket and that the global...

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Modern Monetary Theory is an old Marxist Idea

Modern Monetary Theory, or “MMT”, has been getting a lot of attention lately, often celebrated as a revolutionary breakthrough. However, there is absolutely nothing new about it. The very basis of the theory, the idea that governments can finance their expenditures themselves and therefore deficits don’t matter, actually goes back to the Polish Marxist economist, Michael Kalecki (1899 – 1970). 

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Gold is the 7th sense of financial markets

Claudio Grass (CG): Looking at the interest rate policy of the last years, it would seem that central banks are backed into a corner. They cannot hike borrowing costs without risking a domino effect, as both government and corporate debt have reached record highs, encouraged by the central banks’ own NIRP and ZIRP policies. In your view, is there a “safe” way out of this vicious circle?

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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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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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“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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