Central banks must be increasingly aware that critics of monetary policy are getting some traction in their arguments, that not only have monetary policies failed in their objectives, but they are creating counterproductive economic distortions as well. Chief among these is the transfer of wealth that comes with monetary debasement.

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In This Exclusive Interview, London Analyst Alasdair Macleod Issues A Dire Warning: If Trump Fails to Learn THIS, He Will Lead America Into A Repeat of the Great Depression…

dollarAll this would be fine, if President Trump based his understanding on the economics of trade imbalances.
It’s the cheat factor of fiat currency that’s responsible for trade imbalances, not unfair competition from foreigners…

fedWhat matters is the trading position of speculative money (hedge funds) relative to the bullion banks (listed as swaps) on Comex. When the bullion banks have closed their shorts, and perhaps gone modestly long, then the price will rise. Wash, rinse, repeat.
It has little to do with a quarter point here or there on the Fed Funds Rate… 

gold vs USD 2year dec2The technical bears are out in force, making up stories forecasting the death of gold and silver, based on the chart below.
This is a bear’s delight, with a death cross of the two most followed moving averages, and the gold price seemingly sliding into oblivion…

puzzleThere is little doubt that the rapid expansion of both dollar-denominated debt and monetary quantities since the financial crisis will lead us into a currency crisis.
We just don’t know when, and the dollar is not alone…