When the euro was launched, the European Central Bank (ECB) held approximately 15% of its assets in gold. That ratio has remained reasonably stable, giving rise to a variety of chatter, including suggestions that it may displace the U.S. dollar.
The only obstacle to implementing these solutions is our own intransigence. Our politics and economy are deeply wed to the heavily depleting and input-dependent practices of modern mega-farms. So there are big interests concerned with protecting the status quo, even though it is simply not sustainable in the long term.
On September 12, the German constitution court is expected to rule on the ESM as well as the fiscal treaty chancellor Angela Merkel signed in March. Is it any wonder ECB president Mario Draghi is loathe to do anything but talk before the court meets?
Despite the S&P’s wild ride over the past few years, the market is significantly higher than when President Obama took the oath. Does this ensure a victory for the 2012 election?
In many senses, both macro economic and financial market rhythm in 2012 has been very similar to what we experienced in 2010 and 2011. In each of those years the domestic economy was perking up in trajectory as the year began, only to witness slowing into the second quarter and through both of the last two summers.
Deflationists and inflationists have been arguing for years. Each side has data to back up its claims, and the public doesn't see a clear winner. One of those data points is what historically occurs when an overburden of debt finally blows up, an event that's almost certainly dead ahead for us.
While those championing FATCA (beginning with President Obama) would never admit it, FATCA also has grave implications for the United States, and for U.S. citizens investing or living abroad. Here’s what I foresee in the months ahead, unless Congress repeals or indefinitely delays implementation of FATCA:
Historically, GPIF has been one of the largest buyers of Japanese government debt and has done more than its fair share to confound those who have predicted Japan’s day of reckoning; including Kyle Bass who has been waiting an awfully long time for his view on Japan to play out as he expected.
In commemoration of M2 surpassing $10.0 TN for the first time – not to mention the unfolding confrontation between ECB President Draghi and Germany’s Bundesbank - this week’s CBB will focus on Monetary Analysis.
At any given point in time there are several variables that affect the price of gold. There are times when gold’s price is driven by its perceived association with inflation and other times it’s seen as a “safety asset” or even a global currency.