Ron Hera's Contributions

Ron Hera: Why Financial Repression is Going to Fail

Nov 30 – Jim welcomes Ron Hera from Hera Research LLC to discuss his views on financial repression. Ron believes the current version is going to fail and is very different from the period of financial repression following World War II.

Why Financial Repression Will Fail

Excessive leverage and risk in the financial system, e.g., using customer funds to speculate, never ends well. Stock market crashes, bank and investment firm failures or economic recessions are all potential consequences.

Is Financial Crime a Systemic Risk?

Famed Austrian economist Ludwig von Mises wrote in his seminal work, Human Action (originally published by the Yale University Press in 1949), that “There is no means of avoiding the final collapse of a boom brought about by credit expansion.

Neil Barofsky on "Too Big to Fail" and the Next Financial Crisis

Hera Research is pleased to present a sobering interview with Neil Barofsky, Senior Research Scholar, Senior Fellow and Adjunct Professor of Law at the New York University School of Law.

Gold and Silver Shine on Weaker U.S. Dollar

Gold, silver and crude oil prices are closely related to the movement of the U.S. dollar. After a healthy consolidation, gold began to move up in August 2012. At the same time, deteriorating expectations for crop yields in the American Midwest moved corn and soybean prices to new highs.

Steve Forbes: How to Bring Back America

If there’s any better system to ensure a stable value for money, it’s yet to be found. For nearly all of America’s first 200 years, the dollar was linked to gold. Since we went off the gold standard, we’ve had more and more financial, economic and banking crises.

John Embry on Gold, Silver, Currencies and Commodities

Gold stocks represent a tremendous value in relation to the price of gold and to the fundamentals of the sector. There has been tremendous shorting activity by hedge funds and, as a result, dedicated gold funds have experienced redemptions.

The War at the End of the Dollar

The history of the U.S. dollar is closely linked to U.S. involvement in a series of wars. The Bretton Woods Accord and the resulting world reserve currency status of the U.S. dollar were both byproducts of World War II (1939-1945). The Korean War (1950-1953) was followed six years later by the Vietnam War (1959-1975) which led to the end of the Bretton Woods system.

Martin Armstrong on the Sovereign Debt Crisis

As a top currency analyst and frequent contributor to academic journals, Armstrong’s views on financial markets remain in high demand. Armstrong was requested by the Presidential Task Force (Brady Commission) investigating the 1987 U.S. stock market crash and, in 1997, Armstrong was invited to advise the People’s Bank of China during the Asian Currency Crisis.

15 Fundamental Problems with Fiat Currencies

Subjectivism is the philosophy that reality is what we perceive to be real and that no underlying, true reality exists independent of human perception. In other words, the nature of reality for an individual person is dependent on that individual’s own consciousness. It follows that each person experiences their own reality that is not shared with others.

The Unholy Alliance of John Maynard Keynes

Perhaps the greatest modern champion of central economic planning was the 20th century English economist John Maynard Keynes. Keynes, who was a political socialist and for a time a central banker, advocated the idea that the government should play a large, active role in the economy. Among the consequences of Keynes’ economic theories, whether intended or unintended, is the fact that Western economies today are characterized by large, central governments, central banks and massive debts.

Hugo Salinas-Price: What Every Politician Needs to Know About Silver

Under our party system, members of Congress rely on the guidance of the party leaders. If they fall into disfavor with their party leader, they will be denied the benefits that the party leader is authorized by law to distribute. The three most important party leaders are under great pressure from the central bank, Banco de México, to prevent party members from voting in favor of this measure.

How the U.S. Is Becoming a 3rd World Country - Part 2

The United States is quickly coming to resemble a post industrial neo-3rd-world country. Unemployment, lack of economic opportunity, falling real wages and household incomes, growing poverty and increasing concentration of wealth are major trends in the U.S. today.

Keith Neumeyer: The Silver Market Lacks Integrity

"A lot of mining companies are showing lower production because a lot of silver comes from base metals and, with lower base metals prices, it’s becoming more difficult. I don’t see any major supply drivers for silver in the next several years."

Interview: Jim Rickards on Inflation and Currency Wars

This comprehensive and eye-opening interview with Jim Rickards is being re-featured as it provides an excellent summary of his recently released book, Currency Wars: The Making of the Next Global Crisis.

How the U.S. Is Becoming a 3rd World Country - Part 1

The United States is increasingly similar to a 3rd world country in several ways and is accelerating towards 3rd world status. Economic data indicate a harsh reality that obviates mainstream political debate. The evidence suggests that, without fundamental reforms, the U.S. will become a post industrial neo-3rd-world country by 2032.

Globalization and the Law of Unintended Consequences

As social and political upheaval and civil unrest have spread across the globe, it has become clear that the problems facing Western countries are neither transient nor temporary. Europe, the United Kingdom and the United States share a common set of problems over and above economic decline and sovereign debt issues linked to problems of the global financial system.

Interview: Jim Sinclair on Gold and the World Financial System

Over the counter (OTC) derivatives are the reason we are going through what we are going through now. An OTC derivative is a kind of wager on what something will do. Up until 2009, most of these wagers had very little, if any, money behind them and, if the direction you bet on didn’t come to fruition, the amount of leverage resulted in extraordinary losses. There was a major rollover in derivatives tied to real estate in 2008, as well as in other types, such as those tied to sub-prime auto loans.

QE2 and its Consequences (Part 2)

In the long term, QE2 is obviously not a sustainable course. Nonetheless, QE2 can continue as long as (1) the United States remains politically stable, (2) the U.S. dollar remains the world reserve currency and (3) the value of the U.S. dollar strengthens, remains flat or decays in a controlled manner, i.e., at a relatively stable, gradual rate. Although Bernanke clearly believes that the risks are contained, the Federal Reserve’s policies are, in fact, debasing the U.S. dollar and have already guaranteed the end of the U.S. dollar as the world reserve currency.

QE2 and its Consequences

Part 1

While it may stimulate US exports and help to create conditions for renewed economic growth in the US (rather than relying mainly on the stimulation of consumer spending), QE2 represents a debasement of the US dollar and suggests that demand for US debt may be weakening.

apple podcast
Financial Sense Wealth Management: Invest With Us