Berkshire Hathaway CEO Warren Buffet famously dismissed gold. “Gold has two significant shortcomings, being neither of much use nor procreative.” I have recently written about how a government with gold mining tax revenues can use gold. The benefits of issuing gold bonds include reducing risk, and getting out of debt at a discount. Pretty useful, […]
New York City has a thriving food culture where millions of people eat out at restaurants every day. Free to choose what and where they eat, the choices of these individuals have a direct impact on the NYC food industry and even determine which restaurants “make it” and which don’t. Therefore, restaurants exist and compete […]
A gold bond is debt obligation that is denominated in gold, with interest and principal paid in gold. As I will explain below, it’s a way for the issuer to pay off its debt in full, and there are other advantages. Sometimes, I find that it’s helpful to show a picture of what I’m talking […]
Zero Hedge posted an article that asks an interesting question. Every European country owes money to other European countries. This creates a web of cross-linked debt. Instead of each country laboring under the full nominal amount, why don’t they just cooperate and cancel out everything but the net debt? This remainder would be very manageable […]
By now, everyone knows that S&P downgraded the debt of the USA from their top rating, AAA, to their second-highest grade, AA+. Most of the commentary has been of the pin-the-blame-on-the-donkey variety. For all most people know, this is the collapse of the currency and the financial system and their biggest concern is that Obama […]
