So far, the feds are the only real winners from any of these crises. Federal outlays, as a percentage of GDP have shot up from less than 20% of GDP in 2000 to more than 26% in 2009.
October 28th, 2009 | Bill Bonner | 0 comments | ContinuedAll Posts Tagged With: "central banking"
When People Fear Inflation or a Falling Dollar They Find Refuge in Gold
Gold is also a target of greedy speculators sometimes, even when the going is good. According to a study done by the World Gold Council, you never know what gold will do.
October 5th, 2009 | Bill Bonner | 1 comment | Continued
Is Gold Going Up Because People Fear Inflation?
We began having doubts about the ‘feds inflate…gold soars’ hypothesis last year. It was too easy…too obvious. And if it were that easy to inflate a nation’s currency, how come the Japanese couldn’t get the hang of it…
September 24th, 2009 | Bill Bonner | 0 comments | Continued
Gold is More Like a Religion or a Political Position
The price of gold peaked out in real terms in 1979 at over $2,000 in today’s money. Briefly, an ounce of gold was so loved – and stocks so despised – that you could buy all the stocks in the Dow index for just a single ounce of gold.
September 21st, 2009 | Bill Bonner | 23 comments | Continued
RBA Hoping it Has Done Enough for Economy
For now, at least for this week, it sure does look like the appetite for risk is back. The U.S. dollar and Japanese Yen are weak, while commodity currencies like the Australian, New Zealand, and Canadian dollars are up. Bond prices are down, stocks are trending up, and even oil is creeping back over $50, looking to make a breakout.
May 6th, 2009 | Dan Denning | 5 comments | Continued
Australia’s Response to the U.S. Bailout Plan
Normally, bank robberies work the other way. An armed and masked gang walks into the bank, fires a few shotgun blasts, tells everyone to get on the floor, and asks the clerks to fill up canvas bags with the fabulous moolah. It’s simple. That is not the way it works in modern central banking, though. Today, it’s as if Hank Paulson is pointing his “big bazooka” bailout plan at Wall Street and demanding it opens up its wallet so he can fill it with other people’s money.
September 26th, 2008 | Dan Denning | 7 comments | Continued