The US supplied the Allies in WWII and got paid in gold. After the war, countries linked their currencies to the US dollar, which was linked to gold. The Gold Standard ended completely in 1971, but the US dollar’s reserve status remained. Today more than 61% of all foreign bank reserves are denominated in US […]
Tag Archives: corporate debt
Gold broke out of a huge 27 year base in 2007 at just over $800 per ounce. Gold initially traded up to $1,000 per ounce and backed off to $700 per ounce shortly after the breakout. Gold then moved from $700 to $1,900 per ounce in three years. Gold has rallied $600 per ounce in […]
Gold is up almost $400 per ounce over the past six months. The gold price is benefiting from a weaker dollar, a lackluster jobs report, and continued stimulus talk. No one knows what to expect over the next six months. To have all your eggs in one basket is awfully risky and just plain silly. […]
Since the recent March high in the US dollar, the fiat currency has fallen consistently. The purchasing power of our dollar has dropped. Our dollar buys less today than it did a couple of months ago. All paper currencies have lost significant purchasing power over the past few decades. A simple example explains it all. […]
Aside from the record-high unemployment rate and the growing number of failing small businesses, the biggest threat to the economy is on the balance sheets of the big banks. They didn’t learn their lesson from the 2008 crash and fell back to old, bad lending habits. Unfortunately, we saw many people lost a majority of […]
Last October George Gammon did a video on a 2020 recession scenario. Gammon is an expert on macroeconomics and real estate investments. The video was to the point and the topics were explained thoroughly. The following is a detailed summary of the 5 reasons he believes a 2020 recession will be worse than 2009.
The Federal Reserve is expected to lower interest rates again with another ‘insurance’ rate cut. Some economists say it will help keep growth afloat, others say the lower interest rate will have little impact on the economy since rates are already near historic lows. No one really knows what will happen until later. What you […]
What’s the new risk-free? That’s the question during this time when government bonds can’t provide the safe haven they traditionally offer as an asset class. In 1998, when equities fell, if you had bonds, you did really well. Because bond prices went up when equities fell. If you did your portfolio rebalancing and sold out […]
Loans in the shadow banking system are now larger and a bigger threat to economic stability and our economic system than the subprime mortgages that nearly collapsed our financial system in 2008.