Tag Archives: currency wars

  • Podcast

    A New Way to Hold Gold (2015 Update)

    Right alongside the bills in your wallet
    by Adam Taggart

    Sunday, February 22, 2015, 3:09 AM


    What if you could carry and exchange gold in the exact same manner as you do with the dollar bills in your wallet?

    Last year, we introduced the precious metals community to a company called Valaurum, which has developed a technology that's making this possible.

    This week, we check in to see what's new (spoiler alert: Lots), as well as announce the availability of the new 2015 Peak Prosperity aurum note.

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  • Insider
    Maslowski Marcin/Shutterstock

    What Will Happen Next For the US Dollar

    And why it will be bad for all, including America
    by charleshughsmith

    Thursday, February 19, 2015, 2:44 AM


    Executive Summary

    • Why currency wars are heating up, and will get more intense from here
    • Why it’s critical to understand the influence that Triffin’s Paradox has on the situation
    • Why global crises will cause the dollar to strengthen further
    • What will happen next

    If you have not yet read How Many More “Saves” Are Left in the Central Bank Bazookas? available free to all readers, please click here to read it first.

    In Part 1, we reviewed the deterioration of the dominant narrative of the past six years—that central banks can move markets higher and generate growth more or less at will.  In shorthand: central bank omnipotence.

    Three dynamics are undermining that narrative: diminishing returns on central bank monetary policies and public relations pronouncements; a collapse in oil prices that is destabilizing a key sector of the global economy, and the strengthening U.S. dollar, which is wreaking havoc on emerging-market currencies and economies.

    If central banks really had such absolute control of the financial universe, would they let these three trends undermine their policies and power? The answer is clearly “no.”

    There are a number of other factors undermining the “central banks are in control” narrative, but the field of battle where central banks are most likely to lose is foreign exchange (FX), for two fundamental reasons:

    1.  The FX market dwarfs the central banks. The equivalent of the entire Federal Reserve balance sheet ($4.5 trillion) trades in the FX markets every few days.  Given the size of the market, central banks cannot manipulate the FX market via proxies or direct purchases for long. The only central-bank controlled factors that influence FX are interest rates paid on government bonds and money-printing. The first supports the currency, the second weakens it.

    2.  The FX market is still an open market, influenced by government bond interest rates, trade deficits and surpluses, perceptions of risk and speculative bets. This mix is much more dynamic than the two levers controlled by central banks: setting interest rates targets and creating new money to buy bonds.

    Let’s trace the primary dynamics of the FX market, which is currently being destabilized by the rising U.S. dollar…

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  • Podcast

    Jim Rickards: The Coming Crisis is Bigger Than The Fed

    And will arrive within the next 3-5 years
    by Adam Taggart

    Sunday, April 13, 2014, 8:03 PM


    James Rickards, financier and author of the excellent cautionary best-seller Currency Wars, has recently released a follow-on book: The Death of Money: The Coming Collapse of the International Monetary System. In it, Jim details how history provides plenty of precedent for the collapse that has begun amidst the major world currencies.

    The historical progression is predictable enough that Jim is comfortable claiming that the next economic crisis we face will be bigger than the ability of the Federal Reserve (and the other world central banks) to contain it. And that such a calamity will happen within the next five years:

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  • Podcast

    Bud Conrad: The Bursting of the Bond Bubble Is Now Upon Us

    And the results will be calamitous
    by Adam Taggart

    Saturday, October 12, 2013, 6:55 PM


    At the recent Casey Research conference in Tucson, AZ, Casey chief economist Bud Conrad stepped up to the podium, reached into his pocket, and pulled out a balloon, which he proceeded to inflate. As it grew, it become clear the word "BONDS" was written across it. For dramatic effect, Bud continued inflating the balloon until it popped. He then looked at the audience and said, "I hope I'm making a point."

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  • Podcast

    Jim Rickards: We’re Witnessing One of the Greatest Failed Experiments in Economic History

    It all ends in the collapse of the dollar
    by Adam Taggart

    Saturday, September 21, 2013, 7:50 PM


    Jim Rickards, author of the best-seller Currency Wars, sees the world's central banks embroiled in a "race to debase" their currencies in order to restore – at any cost – growth to their weakened economies.

    In the midst of the fight, the U.S. Federal Reserve wields oversized power due to the dollar's unique position as the global reserve currency. As a result, actions by the Fed create huge percussive ripples across the battlefield, often influencing events in ways little understood by the players – and especially by the Fed itself.

    In Rickards' words, the policymakers at the Fed "think they are dialing a thermostat up and down, but they're actually playing with a nuclear reactor – and they could melt the whole thing down":

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  • Blog

    The Arrival of Japan’s Sunset

    The repercussions will be tremendous
    by Gregor Macdonald

    Monday, February 18, 2013, 10:05 PM


    For a successful technology, reality must take precedence over public relations, for nature cannot be fooled. ~ Richard Feynman

    Waiting for Japan's economy to make a strong recovery has been an ongoing game since 1990. Shall we play that game one more time?

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  • Blog

    James Rickards: Paper, Gold, or Chaos?

    by Adam Taggart

    Friday, February 17, 2012, 6:29 PM


    History is replete with the carcasses of failed currencies destroyed through misguided intentional debasement by governments looking for an easy escape from piling up too much debt. James Rickards, author of the recent bestseller Currency Wars: The Making of the Next Global Crisis, sees history repeating itself today — and warns that we are in the escalating stage of a global currency war of the grandest scale.

    Whether it ends in hyperinflation, in the return to some form of gold standard, or in chaos, history is telling us we can have confidence that it will end painfully.

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  • Blog

    Prediction: Things Will Unravel Faster Than You Think

    by Chris Martenson

    Friday, October 1, 2010, 8:26 PM

    Part I

    By my analysis, we are not yet on the final path to recovery, and there are one or more financial ‘breaks’ coming in the future.  Underlying structural weaknesses have not been resolved, and the kick-the-can-down-the-road plan is going to encounter a hard wall in the not-too-distant future.  When the next moment of discontinuity finally arrives, events will unfold much more rapidly than most people expect.  

    My work centers on figuring out which macro trends are in play and then helping people to adjust accordingly.  Based on trends in fiscal and monetary policy, I began advising accumulation of gold and silver in 2003 and 2004.  I shorted homebuilder stocks beginning in 2006 and ending in 2008.  These were not ‘great’ calls; they were simply spotting trends in play, one beginning and one certain to end, and then taking appropriate actions based on those trends. 

    We happen to live in a non-linear world; a core concept of the Crash Course.  But far too many people expect events to unfold in a more or less orderly manner, with plenty of time to adjust along the way.  In other words, linearly.  The world does not always cooperate, and my concern rests on the observation that we still face the convergence of multiple trends, each of which alone has the power to permanently transform our economic landscape and standards of living. 

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