Decades ago, the Chinese state began to accumulate gold merely as part of a makeshift backup plan. But it may have ended up with enough gold to make a real move away from fiat currency, which would be a disaster for its Western competitors.
The future of Venezuela is grim. International reserves will be depleted, monetary expansion will not pay the deficit, and inflation will continue.
As the foundation of the economy weakens, bank lending weakens also. And then money begins to disappear from the banking system.
The next crisis is not likely to be another Lehman, but another Japan — a widespread zombification of global economies.
Government spending distorts and harms the wealth creation process. And cutting taxes without cutting spending won't lead to real economic growth.
In this 33-minute talk Joseph Salerno discusses the right way to define inflation, and how it impacts both economic prosperity and culture.
Now untethered from everything except the will of central bankers, international exchange rates are especially prone to manipulation worldwide.
What causes financial crises, domestic and global, is the underlying, continuing credit expansion.
The key factor behind the rate-of-exchange determination is the relative purchasing power of various monies.
The Fed's policies over the past decade have resulted in a rapidly widening wealth and income inequality.
