Pegs, Pomp, and Direct Democracy

In characteristic form, the currency traders and those who trade in what is dubbed "financial news" woke up last week and discovered, à la Rip Van Winkle, that the Swiss franc was a haven currency charging higher. Never you mind that it has…

A Thousand Pictures Is Worth One Word

History has a message for us: No fiat currency has lasted forever. Eventually, they all fail. Morgan Stanley reported in 2009 that there’s “no historical precedent” for an economy that exceeds a 250% debt-to-GDP ratio without experiencing…

China Gets Picky

It turns out that China is not willing to pay whatever it has to for energy and metal resources. Several resource deals have faltered in recent months, indicating an increasingly choosy Chinese perspective on energy and metal acquisitions.…

The Looters

If you were reading the newspaper back in May, you might have seen a small reference to a statement from Treasury Secretary Geithner to the effect that he could delay the day of reckoning until August. You probably didn't see any specifics,…

Trade, Trial Balloons, and the Yuan

Regardless of the source of inflation, it is a serious concern for Chinese officials. Chinese history shows that periods of high inflation are associated with social, economic, and political unrest - all things that the central planners in…

China’s Gold Intentions

In broad strokes, today's investment world seems to be divided into two large groups - gold optimists who expect the metal price to keep ascending, and skeptics concerned about a near end to the gold bull market. In this brief overview we…

Employment Faces Grim Decade

The U.S. labor market will not return to full employment (defined as a 5% unemployment rate) by following a "business as usual" course. In conjunction with reforms to the U.S. education system to ensure that the workforce has the needed…

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