Open Letter to Warren Buffett

Dear Mr. Buffet, Let me start by saying that I am a great admirer of yours. What you and Charlie Munger have accomplished at Berkshire Hathaway is truly extraordinary. Today though, I want to talk to you about a very specific four letter word – gold. You’ve not been shy with your opinion about gold […]

100% of Mainstream Interest Rate Theory is Wrong

An interesting article on MarketWatch today caught my attention. The subhead is the money quote, “Back in April every economist in a survey thought yields would rise. Guess what they did next.” Every? The article refers to 67 economists polled by Bloomberg, all of whom would seem to believe in the quantity theory of money. […]

How Can the State Bank of India Pay Interest in Gold?

An article caught my eye this week. The Tirumala Tirupati Temple in India has deposited gold at the State Bank of India, and is getting paid interest on their deposit. There is something unique about this. The interest is paid in gold. To understand why no one else is paying interest in gold, let’s first […]

Rising Interest Rates Spoil the Party

I originally wrote this in September 2013. It is just as relevant now in December. The big news in America is that the rate on the 10-year Treasury bond has risen dramatically from around 1.6% to over 2.9%. This is 130 basis points from a starting point of 160, or an increase of more than […]