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.

Japan Announces Purchase of European Bonds

Japan will buy the bonds of the so-called “European Stability Mechanism”.  (See ) 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 […]

Keith Weiner on Capital Account – Gold and Silver Manipulation

Keith Weiner discusses Gold and Silver Manipulation with Lauren Lyster on Capital Account.

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 […]

Measuring Your Net Worth in Gold

January Video Update

New Years Resolution: Measure your net worth in Gold.

Reflections Over 2012

The last workweek of the year is complete. Beers were had with friends yesterday, Friday evening. The final shopping trip to the mall was completed today, followed by a good meal with my wife. Now I find myself in a reflective mood, and this is a perfect time to reflect on what an incredible year […]