“Can an economy that has become dependent on lies, misrepresentation, ‘fudging’ of numbers, fraud, embezzlement and a multitude of skimming and scamming operations escape the moral and financial black hole it has created ? The self-evident answer is ‘no’.”

— Charles Hugh Smith, 28 August 2012, as quoted in [...]


In A Paper Money System, All Assets Are Backed by the Treasury Bond

What backs the money in the present irredeemable paper system?  Start by considering this brief anecdote.  Joe buys some equipment from John, to be paid Net 30.  We say that Joe owes John $10,000.  Next month, Joe comes back and gives the money to John.  Joe is out of debt, but [...]


Book Review: The Golden Revolution

There are many books on the market today about the coming collapse of the global dollar-based monetary system.  Many of them purport to help the reader “profit” from the collapse(!)  Others are filled (just like the blogosphere from which they often come) with dark, conspiratorial whispers, psychologizing of leaders in government and finance, and preposterous [...]


An Inflation Inflection and the Best Trillion We Shouldn’t Spend

In the 1960s, Valéry Giscard d’Estaing, then the French Minister of Finance, coined the term “exorbitant privilege” to refer to the special benefits enjoyed by the USA by virtue of the fact that it is the issuer of the world’s reserve currency.

Most Americans remain largely unaware of what these short-term benefits are and the [...]


Shocking Article From Milken: “Better Living Through Inflation”

Readers may recall that last year I was invited to the annual Milken Institute Global Conference as a financial reporter. I was not invited back this year because they were displeased with my commentary (they let me know it). My articles for the most part had to do with technical economic issues that were discussed [...]


KeithGram: Draghi Talks Euro Up +1.6%

Mario Draghi today promised to do whatever it takes to fix the euro.  ”Believe me, it will be enough.”  I don’t know why anyone would believe him, but that is not the point of this article.

 There is a Monetarist premise that is accepted almost universally today: the value of a unit of currency is [...]


Broke Bank Mountain

Why, for example, do we need a central bank at all? A typical if feeble answer is that we need a lender of last resort. To which the answer is: why? Why do we need a government-appointed entity to support banks that get in over their heads? A typical answer is [...]


Falling Interest Rates Destroy Capital

I have written other pieces on the topic of fractional reserve banking  duration mismatch, which is when someone borrows short-term money to lend long-term and how falling interest rates actually encourages duration mismatch. Falling interest rates are a feature of our current monetary regime, so central that any look at a graph of 10-year Treasury [...]


KeithGram: The LIBOR Scandal

By now, most readers are aware that Barclays and probably many other banks have been caught red-handed gaming the London Inter-Bank Offer Rate (LIBOR).

No, I am not going to analyze the “cause”, call for more regulation, propose lawsuits, or lament that “banksters” today are “greedy”. I have a simpler and subtler point.

In the [...]


Keith Weiner Lecture “Irredeemable Currency” Part 2.2

Here is the second part of Keith Weiner’s lecture on “Irredeemable Currency vs. Gold: The Solution”. It is broken down into two videos. This is the second part. 


Keith Weiner Lecture “Irredeemable Currency” Part 2.1

Here is the second part of Keith Weiner’s lecture on “Irredeemable Currency vs. Gold: The Solution”. It is broken down into two videos. This is the first part. The second will follow.