Entries by Keith Weiner

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 […]

Summary of Keith Weiner’s Interview on Capital Account with Lauren Lyster – Debunking the Naked Short Position

Last Friday, I was interviewed on Capital Account with Lauren Lyster. We discussed one of the more popular conspiracy theories regarding gold price manipulation. The claim is that a banking cartel is surreptitiously suppressing the price of gold by selling contracts short “naked” (i.e. without having the metal to deliver) in the futures market. We […]

Distortions and Deflation

Distortions and Deflation There is an interesting article on Zero Hedge with commentary by Bill Gross. There are two take-home points that I’d like to look at: 1. Investment decisions are distorted by low interest rates 2. Is “deflation” a rising dollar or debt defaults? It seems that corporations actually consider the rate of interest […]

Congress Passes Fiscal Cliff Deal

We now see who are “millionaires and billionaires” in practice. They are individuals with income over $400,000 or married couples with income over $450,000. Their top tax bracket rises from 35% to 39.6%, an increase of 13%. The capital gains tax rate goes from 15% to 20%, an increase of 33%. The temporarily reduced payroll […]