Floating Exchange Rates: Unworkable And Dishonest - By Keith Weiner (23/4/12) PDF Print E-mail
Keith Weiner   
Monday, 23 April 2012 08:23

Zero Hedge

Milton Friedman was a proponent of so-called “floating” exchange rates between the various irredeemable paper currencies that he promoted as the proper monetary system. Many have noted that the currencies do not “float”; they sink at differing rates, sometimes one is sinking faster and then another. This article focuses on something else.

Under gold, a nation or an individual cannot sustain a deficit forever. A deficit is when one consumes more than one produces. One has a negative cash flow, and eventually one runs out of money. The economy of a household or a national is therefore subject to discipline—sooner or later.

Friedman asserted that floating exchange rates would impose the same kind of forces on a nation to balance its exports and imports. He claimed that if a nation ran a deficit, that this would cause its currency to fall in value relative to the other currencies. And this drop would tend to reverse the deficits as the country would find it expensive to import and buyers would find its goods cheap to import.

Friedman was wrong.



Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!
Read more...
 
Nigel Farage: There Are Going To Be Serious Banking Collapses - By KingworldNews (20/4/12) PDF Print E-mail
KingworldNews   
Friday, 20 April 2012 10:13

With escalating fears regarding the stability of the eurozone, today King World News interviewed former LBMA commodities broker and trader and current MEP Nigel Farage to get his take on the situation. Farage had some very interesting comments regarding the Italians moving large quantities of gold to Switzerland, but when KWN asked about the chaos in Europe, Farage stated,

“Well, so far, from all of the European officials and from the new IMF branch office in Washington, we’ve had unanimity that there was no prospect, at any stage, of the euro being under threat.”
 
“Suddenly, a big shot from the IMF says, ‘there is a problem here, and there may be a breakup of the euro-zone. It could come sooner than you think.’ I see that as a bit of a crack in the dam. They’ve always used the argument that the euro was inevitable and it was here to stay, and an individual from the IMF has just completely blown that out of the water.


The breakup could be disorderly because there have been no contingency plans. This is what makes me so angry. I’ve been saying to Barroso and that little Van Rumpuy character, ‘Come on, let’s have a Plan B.’ Let’s actually get ourselves ready in case it goes the other way.’ The point the IMF official made is that there have been no contingency plans whatsoever....



Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!
Read more...
 
Inflation & Hidden Gold Taxation: 3 Historical Case Studies - By Daniel R. Amerman, CFA (20/4/12) PDF Print E-mail
Daniel R. Amerman, CFA   
Friday, 20 April 2012 10:11

Download PDF



Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!
 
How The Goldman Vampire Squid Just Captured Europe - By Ellen Brown (19/4/12) PDF Print E-mail
Ellen Brown   
Thursday, 19 April 2012 10:53

Truthout

The Goldman Sachs coup that failed in America has nearly succeeded in Europe - a permanent, irrevocable, unchallengeable bailout for the banks underwritten by the taxpayers.

In September 2008, Henry Paulson, former CEO of Goldman Sachs, managed to extort a $700 billion bank bailout from Congress. But to pull it off, he had to fall on his knees and threaten the collapse of the entire global financial system and the imposition of martial law; and the bailout was a one-time affair. Paulson's plea for a permanent bailout fund - the Troubled Asset Relief Program or TARP - was opposed by Congress and ultimately rejected.

By December 2011, European Central Bank President Mario Draghi, former vice president of Goldman Sachs Europe, was able to approve a 500 billion euro bailout for European banks without asking anyone's permission. And in January 2012, a permanent rescue funding program called the European Stability Mechanism (ESM) was passed in the dead of night with barely even a mention in the press. The ESM imposes an open-ended debt on EU member governments, putting taxpayers on the hook for whatever the ESM's eurocrat overseers demand.

The bankers' coup has triumphed in Europe seemingly without a fight. The ESM is cheered by euro zone governments, their creditors and "the market" alike, because it means investors will keep buying sovereign debt. All is sacrificed to the demands of the creditors, because where else can the money be had to float the crippling debts of the euro zone governments?



Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!
Read more...
 
Ditching The Dollar - By Marin Katusa (18/4/12) PDF Print E-mail
Marin Katusa   
Wednesday, 18 April 2012 10:33

Download PDF



Add this page to your favorite Social Bookmarking websites
Reddit! Del.icio.us! JoomlaVote! Google! Live! Facebook! StumbleUpon! Yahoo! Free social bookmarking plugins and extensions for Joomla! websites!
 
<< Start < Prev 361 362 363 364 365 366 367 368 369 370 Next > End >>

Page 367 of 739