Basic Reports

Speculating Our Way to Prosperity, Report 15 Jan 2018

We have been discussing the consumption of capital. Last week, for example, we concluded with: “We see people eating more of the seed corn.” Morally, socialism is the enslavement of man to man. If you create something, they want not just to take it from you, but to render you unable to create anything else. […]

Quantum Change in Gold Demand Continues, Report 7 Jan 2018

Short-term interest rates have been relentlessly rising since the second half of 2015. For example, 3-month LIBOR was 0.28% in July of that year. It is now 1.7%. This is just a result of the Fed centrally planning our economy, managing our interest rate for us. Long-term rates have not moved. The 10-year Treasury yield […]

Quantum Change in Gold and Silver Demand, 2 Jan 2018

We hope everyone had a happy New Year. There is a long informercial airing on American TV. It shows an endless parade of senior citizens, struggling to pay their bills, unable to buy that motorized stairway lift, play golf, or eat out at restaurants. The solution? Get a reverse mortgage! The number to call is […]

The Bitcoin Effect, Gold and Silver Report 24 Dec 2017

Merry Christmas to our American friends. Happy Christmas to the rest of the Anglosphere. Felicem natalem Christi to our Latin-speaking audience, and góðr jól to those who are reviving Old Norse as a great language! Let’s address two themes about the gold price trend that are increasingly in popularity the past few months—as the price […]

Cheering for Bitcoin, Gold and Silver Report 17 Dec 2017

We have published many articles, arguing that bitcoin is unsound. Yet for all those arguments, there is a bright side to bitcoin. It is exciting to see that there is an audience of millions of people—mainstream people, not wild-eyed End-The-Fed gold bug preppers who keep their gold hoards with their stockpiles of ammo—who are looking […]

Bitcoin Hyper-Deflation, Gold and Silver Report 10 Dec 2017

A meme we have seen in the bitcoin community seems to be gaining traction. Bitcoin is deflationary. That is prices of things, measured in bitcoin, are falling. For example, in spring 2011, gasoline was Ƀ1.00. This week, that same gallon had fallen to Ƀ0.0001875. Gas has gone down by 99.98 percent! We don’t think that […]

What’s the Point, Gold and Silver Report 3 Dec 2017

A reader emailed us, to ask a few pointed questions. Paraphrasing, they are: Who cares if dollars are calculated in gold or gold is calculated in dollars? People care only if their purchasing power has grown. What is the basis good for? Is it just mathematical play for gold theorists? How does knowing the basis […]

The Hyperinflation That Was Not, Report 26 Nov 2017

Last week, we made a very controversial statement. We are happy to write the truth, and let the chips fall where they may (e.g. our thoughtful disagreement with Ted Butler about price manipulation). We can accept the flak that we get for this, so long as our position is understood. Some criticized our approach as […]

Inflation and Counterfeit Credit, Report 19 Nov 2017

Let’s take a look at an often-repeated idea that is popular in the gold and alternative investing communities. The government possesses a printing press. Therefore, it will never default. It will just inflate its way out of the debt. It will devalue the dollar. The government does not set the value of the dollar. And […]

The Cycle of Falling Interest, Gold and Silver Report 12 Nov 2017

Over the past few weeks, we have looked at the effects of falling interest rates: falling discount applied to future cash flows (and hence rising stock and bond prices), and especially falling marginal productivity of debt (MPoD). Falling MPoD means that we get less and less GDP “juice” for each new dollar of borrowing “squeeze”. […]