The importance is dependent on your perspective. Those people who are not borrowing money to spend are thus suffering the pangs of a lowering of their lifestyle, which depended on borrowing money to spend;
September 29th, 2009 | Mogambo Guru | 1 comment | ContinuedAll Posts Tagged With: "central banks"
Gold is an Antidote to Paper
But what if you don’t own gold? The yellow stuff is now over $1,000. In fact, it looks like $1,000 could be a new support level for the metal – with most of the support coming from the Chinese.
September 18th, 2009 | Bill Bonner | 2 comments | Continued
At a Time When We Are Drowning in Debt, We Are Also Out of Money
When a debtor is out of money, he has no ability to repay. And when a creditor has borrowers who are out of money, the creditor has no income. No earnings. No power to make better loans.
September 17th, 2009 | Bill Jenkins | 3 comments | Continued
US Dollar As Reserve Currency Not Working Very Well
Their report makes some of the right noises, “The dollar-based reserve system is increasingly challenged.” Hmm, a slight understatement there. If “increasingly challenged” is a euphemism for “dead” then we’d agree.
But we don’t think that’s what they mean.
September 10th, 2009 | Kris Sayce | 38 comments | Continued
World Economy Faces Hyperinflation or Deflation?
What is more likely is that over the coming months, we will get another deflationary scare. Any sell-off in the markets later this year will be met by an even larger stimulus from the policymakers and this will ultimately result in high inflation.
July 9th, 2009 | Puru Saxena | 4 comments | Continued
New Trend in the Market: Sell Bonds and Buy Commodities
Gross finishes with this advice: “Bond investors should, therefore, confine maturities to the front end of yield curves, where continuing low yields and downside price protection is more probable. Holders of dollars should diversify their own baskets before central banks and sovereign wealth funds ultimately do the same.
June 9th, 2009 | Dan Denning | 10 comments | Continued
Ben Bernanke “Respectfully Disagreed” With Angela Merkel
Our heroine, Angela Merkel, made the front-page news yesterday. She stood up against almost every mainstream economist, politician, and central banker in the world – and gave them all hell.
June 5th, 2009 | Bill Bonner | 0 comments | Continued
Central Banks’ New Money is Piling Up
“Quantitative Easing” it is called. As a refresher for readers with real lives and better things to do, QE is how central banks describe what is essentially an act of counterfeiting. They buy bonds with money created – electronically – specifically for that purpose.
May 25th, 2009 | Bill Bonner | 6 comments | Continued
In Gono We Trust
We have it from our usually unreliable source in Washington that Gideon Gono, now head of the Zimbabwean central bank, has been called in to aid the Obama Administration. In secret talks, Gono has agreed to replace the out-going Ben Bernanke, who is said to be going to work as a helicopter pilot. Gono will take over the Fed. And a new bill has already been designed – our source was able to sneak out a copy of the new note – for 1 million U.S. dollars. That’s Gideon Gono’s picture on it…
February 4th, 2009 | Bill Bonner | 6 comments | Continued
Stock Market Collapse Can Be Explained By Panicked Forced Selling
Much of the recent stock market collapse can be explained by panicked forced selling, rather than fundamentals. Sure, we’re going to have a long, deep recession – especially in certain sectors of the economy. But you must also keep in mind that stocks are denominated in paper money. Central banks and governments are fighting this credit crunch with the greatest wave of inflation in history…
December 11th, 2008 | Dan Amoss | 8 comments | Continued