Entries by Keith Weiner

Fractional Reserve Banking

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There is an old erroneous view of fractional reserve banking. “Naturally, all fractionally reserved banks are de facto insolvent at all times…” The Acting Man blog is usually very good, but it published an article by Pater Tenebrarum containing this comment (http://www.acting-man.com/?p=6781).  If there is a weakness in Austrian School thinking surely fractional reserve banking […]

Open Letter to Ted Butler

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Dear Mr. Butler: I read your article about silver manipulation at 24hgold.com. I am responding as someone who wants free markets. I want to make one thing clear before I proceed. We have no free markets anywhere today. Without constant government intrusions into the markets, the paper currencies would have collapsed already, and there would […]

Falling Currencies

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In 1913, the US Congress authorized the creation of the Federal Reserve. Its mandate was limited, but it grew over time to become the central planner of all things monetary. In 1933, President Roosevelt outlawed the ownership of gold. In 1944, the soon-to-be-victorious allied powers signed a treaty at Bretton Woods, agreeing to use the […]

When Gold Backwardation Becomes Permanent

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Listen to the audio version of this article here. The Root of the Problem is Debt Worldwide, an incredible tower of debt has been under construction since President Nixon’s 1971 default on the gold obligations of the US government. His decree severed the redeemability of the dollar for gold and thus eliminated the extinguisher of […]

The Decline and Fall of Silver Backwardation

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On Friday, I published an article: http://dailycapitalist.com/2012/02/17/the-arbitrageur-silver-backwardation/. I was the only one to cover the news of the end of silver backwardation. And I gave my prediction that the price of silver could correct sharply. This piece presents my analysis and theory of what happened. This will necessarily include some educated guesses, as the big […]

Stocks vs. Flows

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Today, people who believe that gold is money think that one should hoard gold. They seek to take possession personally. Or when they have it stored professionally, they look for a private vault outside the banking system where they can (hopefully) trust their warehouse receipt. And why shouldn’t they avoid the banking system? Its corruption […]

Gold Bonds: Averting Financial Armageddon

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After the near-collapse of the financial system in 2008, a growing number of people have come to realize that our monetary disease is terminal. It is that group to whom I address this paper. I sincerely hope that this group includes leaders in business, finance, and government. I do not believe that my proposal herein […]

Debunking Gold Manipulation

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Yesterday [Nov 29, as I wrote this on Nov 30], the December gold contract moved sharply into backwardation (it happened in silver also, but let’s focus on gold). This means that one could sell physical and simultaneously buy December to make a profit (please see the graph). So let’s look a little deeper. December basis […]