Investing in precious metals 101

Tag Archives: currency

  • Blog

    What To Do With Your Cash?

    Is it folly to hold cash right now? Or brilliant?
    by Adam Taggart

    Saturday, July 22, 2017, 4:19 AM

    43

    Have you moved a material percentage of your financial portfolio to cash? Have you become so concerned about the meteoric ramp upwards in asset prices that you find it wiser instead to move to the sidelines, build "dry powder", and wait to re-enter the markets at saner valuations?

    If so, you have my sympathies.

    The past 5+ years have been brutal for savers pursuing this strategy. I know this well, as I'm one of those folks, too.

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  • Blog
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    Less Than Zero: How The Fed Killed Saving

    It destroyed the incentive to do it
    by Adam Taggart

    Friday, June 2, 2017, 10:27 PM

    11

    Savings accounts were created to provide an incentive for people to plan for the future. Put money away today, let it grow through the miracle of compounding interest, and have more tomorrow.

    Prudent savings is essential to a healthy economy. It offers resilience during downturns, and provides seed capital for productive enterprise.

    But we are no longer a nation of savers. The Federal Reserve has killed the incentive to be one.

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  • Blog
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    How Long Can The Great Global Reflation Continue?

    And what will happen when it ends?
    by charleshughsmith

    Saturday, May 20, 2017, 12:01 AM

    17

    Given the extraordinary failure of both Keynesian stimulus and private-sector credit growth to create a self-sustaining cycle of expansion whose benefits flow to the entire workforce rather than to the top few percent, what can we expect going forward? Can we just keep doubling and tripling the economy’s debt load every few years? What if household incomes continue declining? Are these trends sustainable?

    In the near-term, is this Great Reflation running out of steam, or is it poised for yet another leg higher? Which is more likely?

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  • Blog
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    The End Of Money

    Our first live event on our new webinar platform
    by Adam Taggart

    Wednesday, May 10, 2017, 7:27 PM

    6

    Today's lofty asset prices are dependent on one thing far beyond all else: continued massive amounts of liquidity injected each and every month by the world's central banks.

    Over $12 trillion in "thin air" money has been printed up by the world's central banks since the start of the Great Recession. And so far in 2017, a fresh $200 billion is added to the pile each month(!)

    This makes the future price trajectory for stocks, bonds, real estate and nearly every other asset class more dependent on central bank policy than at any time in history. Investors need to ask: What are the central banks most likely to do next, and what will the repercussions be?

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  • Podcast

    G. Edward Griffin: Exposing The Creature From Jekyll Island

    Hard truths from the man who wrote the book on the Fed
    by Adam Taggart

    Sunday, April 23, 2017, 7:25 PM

    51

    G. Edward Griffin, the author of the seminal book on the formation of the Federal Reserve, The Creature of Jekyll Island, joins the podcast this week to add his perspective to our ongoing critical examination of the Fed and the impact its actions are having on society.

    Ed's decades of research and critique of the Federal Reserve, sadly, have left him with conclusions that corroborate our own. Despite its carefully-crafted image as an essential public servant, Griffin concludes it is anything but. It is a private cartel that has connived its way to tremendous advantage and power, secretly (and not-so-secretly) plundering the American people of their treasure and freedoms.

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  • Blog
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    Why This Market Needs To Crash

    And likely will
    by Chris Martenson

    Saturday, March 25, 2017, 2:12 AM

    43

    Like an old vinyl record with a well-worn groove, the needle skipping merrily back to the same track over and over again, we repeat: Today's markets are dangerously overpriced.

    Strange as it may sound, it's our opinion that the sooner a major market correction happens, the better. Crash now while there’s still chance of picking up the pieces afterwards and making something useful from them. The longer we push off the inevitable fall, the more destructive it will be and the more difficult it will be to recover from.

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  • Insider

    Estimating Bitcoin’s Fair Value

    Spoiler alert: It's much higher than its current price
    by charleshughsmith

    Friday, January 6, 2017, 3:13 PM

    48

    Executive Summary

    • Why No Nation Truly Has Full Control Over Its Currency
    • Why Sovereign Efforts To Control Currencies Is Driving Capital Into Digital Currencies
    • The Driver's Of Digital Currency & Value
    • Calculating Bitcoin's Fair Value

    If you have not yet read Part 1: Why The U.S. Dollar And Bitcoin Keep Rising available free to all readers, please click here to read it first.

    In Part 1, we reviewed the dynamics of demand and utility that drive the valuation of any tradeable good, service, commodity and currency.  We established that it’s impossible to understand how a fiat currency such as the U.S. dollar can retain a value above its tangible value of zero unless we accept its utility value and its non-tangible sources of value, i.e. the wealth and wealth generation of the issuing nation and state.

    We now turn to the second half of the question posed in Part 1: Why isn’t the market value of a digital currency such as bitcoin zero?

    Or perhaps more interestingly: How high might the price of bitcoin go?

    To answer this question, we must investigate another question: Can any state control the value of its currency and its place in the global economy? I suggest the answer is no. Beneath a surface veneer of status quo continuity, nations and states are losing the ability to control their role in the global economy and thus the utility of their currency.

    To understand why, we turn to socio-historian Immanuel Wallerstein.

    Who Controls a Rapidly Changing World-System?

    Wallerstein is recognized for advancing the concept of world-system, his term for what I call a global Mode of Production, i.e., the political, social, financial and economic system that governs the relations of power, labor, capital, trade and resources (broadly speaking, our understanding of Nature and the extraction of its resources).  In a recent essay China is Confident: How Realistic?, he observed that "countries (have lost the ability) to control what happens to them in the ongoing life of the modern world-system."

    These two paragraphs get to the essence of his analysis…

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  • Blog
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    An Everyman’s Guide To Understanding Cryptocurrencies

    What are they exactly? Why consider owning them?
    by charleshughsmith

    Friday, June 10, 2016, 9:51 PM

    17

    When an asset rises by almost 30% in a few weeks, it tends to attract attention.  Recently, that asset was bitcoin (BTC). The price of BTC in dollars rose from $454 on May 23 to $590 on June 6th.

    When an asset doubles in a matter of months, it tends to attract attention.  The cryptocurrency Ether (part of the Ethereum platform) doubled from around $7 in April to roughly $14 in early June.

    Are these cryptocurrencies mere fads? Or are they potentially game-changing alternatives to the conventional currencies such as the U.S. dollar, Chinese RMB, Japanese yen or European Union euro?

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  • Insider
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    Will Cryptocurrencies Soar as the Global Economy Falters?

    The reasons why they very well may
    by charleshughsmith

    Friday, June 10, 2016, 9:50 PM

    29

    Executive Summary

    • How will increasing capital controls around the world affect demand for cryptocurrencies?
    • The big banks and corporations are embracing the blockchain. Will that make it harder to ban cryptocurrencies?
    • With far less than 1% of the population holding cryptocurrencies, how large is the remaining updside?
    • What the future may hold for bitcoin and its digital brethren

    If you have not yet read An Everyman's Guide To Understanding Cryptocurrencies, available free to all readers, please click here to read it first.

    In Part 1, we sketched a brief overview of cryptocurrencies and their potential role as a means of transferring and thus preserving capital from depreciating currencies in destabilized economies to more secure currencies/assets elsewhere in the world.

    The Rise of Capital Controls Fuels the Use of Cryptocurrencies

    As governments actively devalue their currencies (thereby making everyone using the currency poorer), their citizenry with financial capital are forced to seek ways to move their at-risk wealth into other currencies or assets.

    China is a prime example of this trend. As the U.S. dollar has soared 20+%, China’s currency has strengthened along with the USD due to the yuan being pegged to the USD. In response, China must devalue its currency to maintain the global competitiveness of its export sector.

    Faced with a massive loss of purchasing power, China’s wealthy class has moved their wealth and their families out of China. This flood of capital has pushed up housing prices in favored markets such as Vancouver B.C. and west coast cities in the U.S.

    The sums being transferred abroad are non-trivial. Estimates range into the trillions of dollars. Many observers see the rise of capital controls as…

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