Will the future bring deflation or inflation? Some have reasoned that since there was deflation during the thirties and as we are going into a similar situation then we should expect deflation. The events since last year has certainly confirmed their predictions.
The fact is life is never that easy and such simplistic—typically English empirical—analysis based [...]
Posts Tagged ‘dollar’
Here is my Handle Here is my Spout
Posted in History, tagged deflation, depression, dollar, economy, inflation, money, permanent war on September 4, 2009 | Leave a Comment »
Four Graphs
Posted in History, tagged debt, dollar, economy, empire, Federal Reserve, finance, money, trade, United States on May 15, 2009 | Leave a Comment »
The first shows the decline of treasuries held by the Federal Reserve Banks, while their credit has doubled:
This has a serious implication on the soundness of the dollar. The second graph shows the dependence of the US on imported goods and services:
That would is not a problem by itself, but taken in conjunction with the [...]
High Treason in Zimbabwe
Posted in History, tagged Africa, dollar, dollarisation, economy, finance, gold, hyperinflation, money, treason, Zimbabwe on March 1, 2009 | 1 Comment »
The newly installed prime minister of Zimbabwe, Morgan Tsvangirai, is the worst kind of traitor; he has just surrendered the sovereign right of the people of Zimbabwe to issue money to the United States:
“Zimbabwe’s prime minister, Morgan Tsvangirai, has taken an important step toward establishing the new power-sharing government’s credibility by fulfilling a commitment to [...]
The Printing Press is a Harsh Mistress
Posted in History, tagged balance sheet, central bank, dollar, economy, Federal Reserve, gold, government debt, hyperinflation, inflation, monetary base, money on December 5, 2008 | Leave a Comment »
Is it possible to have a fiat currency that does not end in hyperinflation? In this post I will try to explain why the answer is a resolute No.
Irresponsible governments who print prodigious amounts of paper to fund expenses beyond their ability to carry the debt are certainly going to end with hyperinflation, as is [...]
Flow my Dollars the Central Banker Said
Posted in History, tagged deflation, dollar, economy, finance, inflation, monetary base, money on November 5, 2008 | Leave a Comment »
“Flow my tears, fall from your springs
Exil’d for ever: Let me mourn
where nights black bird hir sad infamy sings,
there let me live forlorn.”
-Flow my Tears, John Dowland
In The Magical Jet Engine I wrote about a war in the realm of pure thought between the deflationists and the inflationists. At that time the inflationists were attacking [...]
Monetary Weapons II
Posted in History, tagged dollar, economy, euro, finance, war on September 15, 2008 | Leave a Comment »
“Most interesting is the observation that the Euro’s slide against the US$, is the near-perfect inverse image of the US-dollar’s climb against the Russian rouble. The emergence of militarist Russia, ready to aim its nukes at Europe, and a stranglehold over Europe’s energy supply, has triggered a mini-flight of capital from the Euro and the [...]
Shattered
Posted in History, tagged collapse, dollar, economy, finance, gold, hyperinflation, survival on July 4, 2008 | 1 Comment »
Two Lines
The following graph is from St. Louis Federal Reserve Bank:
Click to view
Blue line: ‘Total Borrowings of Depository Institutions from the Federal Reserve’
Red line: ‘Non-Borrowed Reserves of Depository Institutions’
From the red line we concluded that US banks are insolvent, from the blue we concluded that the Fed (Federal Reserve) has assumed their liabilities. The result [...]
Monetary Weapons
Posted in History, tagged dollar, ecb, economy, euro, fed, finance, hyperinflation, war on June 30, 2008 | Leave a Comment »
The downward spiral in the German bund market widened the Euro’s interest rtate advantage over the US dollar, leaving the greenback on shaky ground and vulnerable to speculative attack. Bernanke would be under heavy pressure to match a second ECB rate hike to 4.50%, to defend the value of the dollar. In essence, the ECB [...]
A Ptillion Dollars
Posted in Miscellaneous, tagged dollar, economy on June 19, 2008 | Leave a Comment »
A ptillion dollars is a thousand trillion dollars or ten to the power fifteen dollars or $1,000,000,000,000,000.
This number is no longer a theoretical measure but an economic reality: Total debt in the US-public and private-has been estimated at $0.1 ptillion; the value of short-term interest-rate futures traded on exchanges is $0.548 ptillion (notional).
When the coming [...]
The Magical Jet Engine and Global Monetary Disconnect
Posted in History, tagged dollar, economy, fed, finance, hyperinflation on April 28, 2008 | Leave a Comment »
When engineers were developing the jet engine they encountered a very strange phenomenon: while holding the fuel level, the input to their system, constant the engine at some point starts to turn faster, the output to their system; to avoid an explosion they would lower the fuel level, but the engine would keep on turning [...]
