It appears that Austrian economics are beginning to make head-way into the mainstream.
In this excellent interview with Yahoo Finance’s Lauren Lyster, Steve Forbes makes the case for a return to the gold standard, and how a return to strong money is the only viable solution to prevent the complete destruction of the dollar.
Forbes’ full interview with the lovely Lauren Lyster is below: [Read more...]
It appears that Austrian economics are beginning to make head-way into the mainstream.
Jim Rickards joins Lauren Lyster with the Yahoo Daily Ticker to discuss gold, and plans for a Texas Depository run by the state of Texas that holds gold and will protect it from Federal confiscation under the 10th Amendment.
The proposed legislation would allow Texas pension funds to invest in PHYSICAL gold (such as the Texas Teachers Retirement fund, one of the largest pension funds in the world after CALPERS) and would create the Texas bullion depository- the Fort Knox of Texas!
Furthermore, the bill contains a clause nullifying any confiscation of gold by the Federal government!
Assuming the legislation passes, it may be looked back upon one day as the first step in the State of Texas seceding from the USSA.
The Daily Ticker’s Lauren Lyster interviewed commodities guru Jim Rogers Tuesday on the blistering pace of gold and silver coin sales to start 2013 by the US Mint.
Lyster began the interview by holding up a 2012 US Silver Eagle, and asking Rogers whether a USE is a collectors item, money, or simply a way to buy precious metals. Rogers responded by pulling his own ASE out of his pocket, and stating “I have a 2013! You can’t get them, can you, they’re sold out!”
Rogers stated that It worries me that the US Mint has run out. It’s not just the US Mint, the Canadian Mint, several mints have run out of coins!
Further into the interview, Rogers informs Lyster that there are no strong currencies any longer, and while the dollar will likely continue to see safe haven flows from investors who don’t understand what they are doing, there are no longer any strong currencies, hang on to your silver! [Read more...]
The Daily Ticker’s Lauren Lyster interviewed Jim Rickards regarding the Bundesbank’s recent announcement that it will repatriate over 600 tons of German gold from the NY Fed and the Bank of France, and its implications on the gold market over the short and long term.
Rickards stated that the Bundesbank’s gold repatriation is world historical, is massively bullish for gold, and believes that China has doubled to tripled its gold reserves since the last official statement of 1,054 tonnes in 2009!
Rickards interview on gold is a MUST WATCH!! [Read more...]
The lovely Lauren Lyster, formerly of Capital Account and now the new host of Yahoo’s Daily Ticker, interviewed SD’s favorite Fed-basher Jim Grant regarding the Fed’s latest FOMC statement.
Grant stated that if creating credit was able to successfully reactivate business activity the world would have been richer many generations ago, that the Fed’s actions are counter-productive, that QE funds injected into the economy is money in search of mischief, and that Bernanke’s manipulation of interest rates will fail spectacular with major fireworks as the price of interest rates find their own free market valuation.
As always, Jim Grant’s interview is a MUST WATCH!! [Read more...]
Welcome to Capital Account. We talk to Chris Martenson about his outlook for 2013, about the prospects of reducing the US’s debt, and the plausibility of minting the trillion dollar platinum coin.
Plus, gold tumbled after the release of yesterday’s Fed minutes. Gold has been on the move down since last October, but the mention of a potential end to QE brought gold prices lower. Dennis Gartman, publisher of The Gartman Letter, wrote that gold bugs, operating on the thesis the Fed has lost control of the money supply, are in tatters. Is there more to the swings in the gold price than meet the eye? We ask Keith Weiner, president of the Gold Standard Institute and CEO of Monetary Metals, if the claims of gold market manipulation are founded. [Read more...]
Federal Reserve’s Expectations of Growth Over the Past 10 Years Have Greatly Overstated Actual Growth
As we begin 2013, we reflect on some economic predictions that never came true. After the Fed’s unprecedented actions in 2008, some predicted massive double digit inflation by now. Yet headline consumer price inflation, as of November 2012, was below 2 percent. And as for inaccurate predictions, the Federal Reserve’s expectations of growth over the past 10 years have greatly overstated actual growth. These inaccurate predictions are now the basis for Fed policy, as the FOMC announced in December “The Committee…currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as…inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee’s 2 percent longer-run goal.” We talk to Pragmatic Capitalist Cullen Roche about why so many wrongly predicted inflation and what the Fed’s overly optimistic past predictions mean for its future interest rate guidance. He breaks down monetary mechanics and his view on why this understanding is missing from mainstream economics. [Read more...]
Welcome to Capital Account. With reports of Japanese pension funds investing in gold, we talk to Bill Murphy and Chris Powell from the Gold Anti-Trust Action Committee about the role of gold as a hedge in world markets.
And we often discuss the role of the price mechanism and price discovery and on this show, as well as the role central banks, and private banks, play in distorting it. Whether through central bank induced ZIRP or through private banks tinkering with Libor, markets are most certainly manipulated and prices are unquestionably distorted. For years Bill Murphy and Chris Powell have made the case that the precious metal markets are no exception to the manipulation. While we see video of Queen of England touring the vaults of the Bank of England, we don’t ever see transparent disclosure of the gold leasing and transactions of central banks. And as for silver price manipulation, the CFTC’s four year investigation into silver has shed no light. We talk to Bill Murphy and Chris Powell of GATA about the latest developments in precious metal markets. [Read more...]
UBS is expected to pay as much as 1.6 billion dollars to settle charges of Libor rigging with US, UK, and Swiss authorities, according to Bloomberg. The settlement is over alleged rigging of the yen Libor interest rate starting in 2007. However, unlike a majority of recent bank settlements where the banks neither admit to nor deny the allegations, the Japanese subsidiary of UBS will reportedly plead guilty to a criminal charge. In addition, about three dozen bankers and senior managers will reportedly be implicated in the alleged rigging.
There have already been a few arrests, but not all the implicated bankers will face criminal or civil charges. The Financial Times reports that even with an admission of guilt, UBS will not lose its ability to conduct business in Japan. We talk to former Special Inspector General of TARP and author of “Bailout,” Neil Barofsky, about what an admission of guilt would mean for too big to fail banks.
Plus, prosecutors recently decided not to indict HSBC for money laundering, as government officials were reportedly concerned over the repercussions to the financial system. [Read more...]
There is no question that yields have been eviscerated by Fed policy, but is it the result of Fed policy past or present? Is it the current presence of the Fed in the bond market that is keeping rates low, or was it the Fed’s accommodative monetary policy during the boom years and the subsequent urge by the private sector to relieve itself of overpriced assets in the bust that has kept yields from rising? In either case, we find fault with the Federal Reserve. It seems the Fed can now claim this: “Honey I Shrunk the Yield Curve!” Only in this scenario, policy wonks in control of the “shrink ray” seem hardly concerned about our new microscopic interest rates. If anything, the lower they go, the more the Fed may print, forcing a new class of indentured investor out to scavenge for more yield on the front lawn. We talk to Jim Grant, founder and editor of “Grant’s Interest Rate Observer” and author of “Mr. Speaker!”, about the recent announcements from the Federal Reserve. [Read more...]
Welcome to Capital Account. It’s Federal Reserve Interest Rate Decision day! As expected, the Fed announced it will expand its bond-buying program with 45 billion dollars a month in longer-term treasury securities, after the conclusion of Operation Twist at the end of this year. In a different sort of twist, the Fed also announced it is now tying interest rate guidance to economic guide posts. At the press conference Bernanke announced that the FOMC members would take into consideration a variety of metrics for determining inflation, but how will the Fed use this data to make its long term inflation predictions? We ask Jim Rickards of Tangent Capital Partners if this gives the FOMC more subjective leeway to ignore potential high short term price inflation. He explains that this gives the Fed the room to tell the public “inflation is what we say it is, and that the Fed is attempting to INCREASE THE VELOCITY of the money supply in order to shock the public into spending due to higher than expected inflation! [Read more...]
Welcome to Capital Account. In the summer of 2011, during the US debt ceiling debate and credit downgrade, gold topped 1900 dollars an ounce. However, since then the price has dropped, despite the types of news events that usually drive investors to gold. Plus, according to the World Gold Council, central banks will buy more than 500 tons of gold this year, up from 465 tons in 2011, a new high. Why has the yellow metal been trading sideways for the past year and a half as the S&P 500 has gained a very respectable 25 percent? We talk to commodities legend Eric Sprott about gold and silver, and where he sees prices headed over the next decade.
And despite the recent stagnation in the price of gold, the metal has been in a bull market for more than a decade. But how much of the run-up in gold is driven by factors we talk about every day (such as QE and debt downgrades), and how much is driven by issues such as the 20-year bear market in gold that preceded the recent run, as structural supply changes forced the inevitable price adjustment that we see today? We talk to Eric Sprott, CEO of Sprott Asset Management, about how he has weighed these factors over the years.
The FOMC meets next week and some anticipate an announcement for more bond purchases. The continuation of Quantitative Easing is part of the Federal Reserve’s effort to support the economy, but what if the Fed’s manipulation of interest rates actually hurts growth? We talk to John Butler, founder of Amphora Capital and author of the Golden Revolution, about gold as the antidote to unhinged money printing and centrally planned price fixing. John Butler also counters some claims heard on the show earlier this week, including the idea that there is not enough liquidity in gold to serve as a global reserve currency, and that returning to a gold standard would be a mistake. [Read more...]
When Timothy Geithner was asked if the administration is prepared to go over the Fiscal Cliff if Republicans do not agree to raise taxes on the wealthy (those earning 250,000 dollars per year or more), he responded “Absolutely.” But when it comes to the US economic problems, does the tax debate or the Fiscal Cliff debate begin to scratch the surface of the crisis? We talk to Former Republican strategist Kevin Phillips, about lessons we can learn from 1775. Phillips is writing about revolution: the American Revolution– in particular 1775, a good year for revolution as he says. He delves into the economic factors that resulted in the Revolutionary War.
Among them are the inability of colonists to manage their own monetary affairs because of British policies constraining the circulation of specie, over-indebtedness as a result of a lack of money and restrictions on trade, and the British control of trade which required certain commodities to pass through middlemen in London. We talk to Kevin Phillips, former White House strategist, about what we can learn from this history as the US faces its own set of economic and political problems today. [Read more...]
Welcome to Capital Account. Recently, top bosses and executives at Olympus, the Japanese manufacturer of medical equipment and cameras, pleaded guilty to fraud in one of Japan’s largest corporate scandals. Today we talk to Michael Woodford, the former President and CEO of Olympus, about the scandal and its implications. In mid-October of last year, he was unexpectedly fired by the board. According to the Financial Times, Olympus portrayed him as an outspoken Westerner who “diverted from the rest of the management team.” But Michael Woodford has a different story: he exposed to the press the mismanagement and accounting cover-ups he discovered at Olympus. Woodford became the first CEO of a global multinational company to blow the whistle on his own company. We talk to him about the 1.7 billion dollar fraud he exposed, as well as what he thinks about larger business practice and economic health in Japan. [Read more...]