Entries by Keith Weiner

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 […]

Bye Bye Trillion Dollar Coin

Obama’s Treasury decides against the trillion dollar coin. Both parties and their voters want the spending to continue. The only real debate is over the pork and scoring points for one’s team. Obama must feel he’s got the leverage to make the Republicans tap out. http://www.businessinsider.com/treasury-rules-out-trillion-dollar-platinum-coin-2013-1

Problem with GDP

The problem with GDP is that government consumption of private capital is positive. The problem with government gradually taking over all aspects of the economy is that even a small cut in spending will send workers to the unemployment line and shutter businesses. http://www.zerohedge.com/news/2013-01-11/35-us-2013-gdp-could-evaporate-due-enacted-tax-hikes

Japan Announces Purchase of European Bonds

Japan will buy the bonds of the so-called “European Stability Mechanism”.  (See http://www.bloomberg.com/news/2013-01-08/japan-to-buy-esm-bonds-using-forex-reserves-to-help-weaken-yen.html ) The ESM is an 80 billion euro pool of capital that can be levered up to 700 billion euros by selling bonds.  Supposedly, 200 billion has to be kept safe but that remains to be seen.  The ESM is a mechanism […]

The Trillion Dollar Coin

There has been much buzz in the past few days about a truly horrible idea.  Instead of having to negotiate with Congress to raise the debt ceiling so the Treasury Department can sell more bonds to pay for more spending, why not just mint a trillion-dollar platinum coin?  This coin would contain one ounce of […]