Tag Archive for: sound bites

Lies, Damn Lies, and Statistics

Homebuilder confidence increased in May. Lumber prices in the last two months? Not so much, down over 20%.   When I was a kid, I saw many competing stereo receivers offering higher and higher wattage. It was pretty ridiculous to see these lightweight and flimsy boxes claiming to put out 500 watts or more. Clearly […]

A Picture of Capital Destruction in Germany

Today, the European Central Bank announced that it was cutting interest rates. It also said that it was open to negative deposit rates. We are witnessing nothing less than the metastasis of monetary cancer. A falling interest rate causes the destruction of capital. Here is a picture of the rate falling from over 4% to […]


A flash crash occurs when the bid is either very thin or disappears altogether. Under any selling pressure, the cleared price can fall to any level at least temporarily. By definition and by nature, money is not subject to flash crashes.  


In the 17th century, the price of Dutch tulips ran up to incredible levels before collapsing, ruining many who participated in the first well-documented bubble. We are not knowledgable about horticulture, but we are sure that those Dutch tulips were fine specimens and produced wonderful flowers. And this is where bubbles generally begin. There is […]

Euro Backwardation

Not too long ago, I wrote dollar backwardation. It’s happening, not in the dollar, but in the euro in Cyprus. Zero Hedge writes the following. Banks have been closed all week, the threat of loss of part of one’s deposits is still there, it is at best uncertain when banks will reopen, and capital controls […]

Bank Deposits – The Final Backstop

Put this in perspective. The government of Cyprus borrowed money it had neither means nor intent to repay. Borrowing, for a government, means selling bonds. The Cyprus banks borrowed money, which for a bank means taking in deposits (among other sources of funds). They used that money they borrowed from their depositors to buy Cyprus […]

Silver Perspective

As this set of infographics show, more than half of the silver mined throughout history is still in human inventories.  Be sure to keep reading and scroll to the bottom.

U.S. Debt Repudiation

John P. Cochran writes on Zero Hedge about Murray Rothbard’s propsal that the government default on its debt: Rothbard’s recommendation: “I propose, then, a seemingly drastic but actually far less destructive way of paying off the public debt at a single blow: outright debt repudiation.” Repudiation is not only a sound economic solution to our […]

Rising Debt Burden & Falling and Rising Rates

  Three links from Seeking Alpha’s Wall Street Breakfast: Must-Know News today really underscore the intractable debt and interest rate problems in irredeemable currency. Corporate pension deficits soar. The WSJ shines a light on the significant funding gap in corporate pension plans, with the deficit among Russell 3000 companies rising to $441B in 2012 from […]

Measuring Gold Demand

The World Gold Council asserts that gold demand fell 4% in 2012.  Can you spot the fallacy? See: The Business Insider