Entries by Keith Weiner

Japanese Monetary Policy = Insanity

After 20 years of trying to fight deflation, and 10 or 11 rounds of Quantitative Easing, now Japan is trying the same thing again and expecting a different result. Aside from proving that they are insane, it also proves that the widely accepted theory (rising money supply = rising prices and falling currency) doesn’t work. […]

Deflation? It’s not about falling prices!

Here is what Deflation is really about… – falling real estate values – falling stock market values – falling employment – falling banking system – falling incomes – falling economy That’s why governments and central banks are trying so hard to fight it (in vain). http://www.reuters.com/article/2013/01/21/us-spain-banks-protests-idUSBRE90K0N920130121

Impact of Germany’s Gold Repatriation

Germany has announced that it plans to take home all 374 tonnes of its gold stored at the Banque de France, and 300 out of 1,500 tonnes held at the Federal Reserve Bank of New York (http://www.ft.com/intl/cms/s/0/97970542-5fd2-11e2-b128-00144feab49a.html#axzz2I9UZ7iGA). Bill Gross of PIMCO tweeted: “Report claims Germany moving gold from NY/Paris back to Frankfurt. Central banks don’t […]

Buying Growth, Not Sustainable

There is no way to make SS “actuarially sound”, and there is no way for the government to massively distort the economy in a “business friendly way.” It is not possible to make a sound annuity under an irredeemable currency.  The interest rate is falling, which means dwindling income for the annuity.  And of course […]

Zero Interest Rate – Bad for Everyone

Zero Interest Rate Policy isn’t just bad for savers and those living on a fixed income, in other words the people.  It is also bad for banks.  Net Interest Margin, which should be a major profit center at a bank, if not the profit center, is negative at JP Morgan. JPM Beats Thanks To Ongoing […]

Sandy Relief passes the House today

Sandy Relief passes the House today The total is now over $50B.  That’s over $150 for every man, woman, and child in the country.  Most children don’t work.  Many people are retired.  There are people in jail, on the dole, and who work for the government including military (whose cannot by definition help pay for […]

Be Careful What You Wish For

Be Careful What You Wish For The German central bank is withdrawing its gold on deposit at the Federal Reserve and bringing it back to Germany (It Begins: Bundesbank To Commence Repatriating Gold From New York Fed).  Most gold bugs are thinking about the gold “price” measured in dollars.  They think that this will likely […]