Money and Banking

Suppose that a convincing orator should go on TV tomorrow, and urge the public: "The banking system of this country is insolvent."

The psychological impact of a lifetime within a fiat money economy cannot be underestimated. With more wealth seemingly available at the click of a computer button, refusal to spend more on government programs must stem only from cruelty and greed.

Inflationary monetary policy is driving markets toward ever larger and more monopolistic firms that dominate the marketplace.

The fewer non-productive bubble activities we have, the better it is for those activities that actually crate wealth. But attempts to reverse deflation with new money creation only create new bubbles.

Abenomics, Japanese Keynesianism on steroids, has made the rich richer, and all others poorer. 

It is no coincidence that the century of total war coincided with the century of central banking.

Politicians, who claim that a week in politics is the long term, fail to see any problem.

Central bankers are claiming that a global savings glut is driving down the "natural" interest rate to negative levels. They're wrong.

The repo crisis — and it is a crisis — is telling us that liquidity providers are aware that the price of money, the assets used as collateral and the borrowers’ ability to repay are all artificially manipulated. 

Without a turn toward hard money, the odds are that the world’s dependence on the Greenback will not decline but presumably grow even more in the years to come.