Prudent Investor

Monetary Madness in a Single Chart: Hyperinflation's Just Around the Corner

The Fed will not be able to absorb all the fresh money - ahem, "liquidity" - because they bought all kinds of crap paper (CDOs) at mark-to-fantasy prices. Who will bail out the Fed by buying this crap anywhere close to the prices the Fed "paid" (hahaha) with its freshly digitized "money." Quote from JP Morgan, "Gold is money. Everything else is credit."

Better Listen What China Has to Say

Mr. Lewis,
pls be so kind to include yr alleged lies in China's GDP calculation when alluding to such.
To find out what Yuans look like I modestly advise to do a "Go ogle" picture search.
Pls also provide more background why China is run less to the people's benefit, e.g. in a comparison with the economic governance of the USA which tries to nationalize away its problems.
Your kids will certainly be happy to pay up for the bonuses US bankers and the billions given to carmakers with hopelessly outdated products lagging several years behind European car making quality and fuel.
Pls also be a more specific why Europe is a dragon?
And pls check your last allegation which makes absolutely no logical sense.
Maybe you read your comments a second time before hitting the "publish" button and apply a spell-checker too. "Tenents" (???) could not be found in any of the dictionaries I use.
Thank you very much for your contribution.


On Jun 28 01:11 PM James Lewis wrote:

> I think the author does not understand the basic tenents of the balanace
> of payments. Nor does he understand how gdp is calculated in China.
> In China 6.1% GDP growth (which is around 4.5% after the lies have
> been factored out) is indicative of a recession. In terms of China's
> reserves, the reason why the Chinese Government has so much reserves
> because they run China like a business, not like a non-for-profit
> organisation with the PEOPLE'S best interests at heart. I'm sure
> most countries could build up reserves by holding down the living
> standards of a great majority of its people in order to fully exploit
> and profit from its human resources.
>
> Also do we not think China is getting a little head of itself talking
> about the Yuan being a reserve currency and the need for them to
> buy more gold. Most of the worlds population dont even know what
> the yuan looks it.
>
> And China is not a Dragon..it's hungry Tiger.
> Europe is the Dragon.
>
> Tom E, nice thoughts. Seems to me the speculative stock-piling is
> also a short-term trading hedge against the dollar weakening. Some
> days I feel that China is talking the dollar down to make their speculative
> stock-piles rise in value (in USD terms).
>

Bundesbank Agrees to Sell Gold

Just to clarify: Germany sells a few tons for collectors coins every year.

Two Charts Imply Current U.S. Recession May Be Longest in History

I did not know the USA has such a long history. Tell me more.


On Jun 13 09:28 AM markincorsicana wrote:

> "Longest in History" ? Longer than the one that started in 410? Certainly
> more global and likely to be painful for more people. And more profitable
> for more people as well.

Monetizing the Debt: Explanation For Non-Economists, Bankers and Other Laymen

Prudent Man,
I am impressed and would like to give you a TRILLION thumbs ups. Pls check out my latest post
prudentinvestor.blogsp...
and add to it.

The EU's Continuing Political Weakness May Doom the Eurozone

I hope being forgiven for quadrupling the peace period in neutral Switzerland. They are "only" enjoying peace since 1815, excluding recent attacks from the USA and Germany on Swiss banking secrecy. Correction has been made. BTW I am a literate Austrian (no kangaroos here) and please google "flaming" in order to educate yourself a bit in commenting. Or go write your own blog.

Bundesbank Agrees to Sell Gold

Sorry for multiple post of my comment.

Bundesbank Agrees to Sell Gold

Just to clarify: Germany's Bundesbank sells a few tons every year to the German mint for production of collectors coins.

Bundesbank Agrees to Sell Gold

Just to clarify: Germany sells a few tons of gold every year to the German mint for collector's coins.

A Must See Movie: 'Zeitgeist Addendum' Explains the Fiat Money System

Andypandy,
I will follow up this week with some links that explain this fundamental problem - which you sense very correctly - of a fiat money system.
One book I recommend to everybody interested in the subject is "Secrets of the Temple" by William Greider which is by far the best (of the very few) book about the Federal Reserve. Greider is a Washington Post veteran who has moved to the left of the political sphere since he wrote this master piece that is both informative and brilliantly written.


On May 10 09:42 AM andypandy wrote:

> Ok I was wrong, it's a great video so far - first 20 min actually
> helped me understand me something new... Where does the money come
> from to pay interest to the federal reserve if they are the ones
> who make the money? Ha, have I not asked that question before?

The Numbers Are Too Big: IMF Research on Euro Policy Without a Single Absolute Figure

just give me some time to come up with evidence


On Sep 01 05:23 PM Dave Wrixon wrote:

> Well, just because the IMF is clueless, you cannot jump to the same
> conclusions about the ECB.
>
> For years the Yanks have accused the ECB of being overly cautious,
> keeping interest rates too high and the money supply too tight.<br/>
>
> You cannot have it all ways. Where is your proof?

Eliot Spitzer Claims the Fed Is a Ponzi Scheme

You only talk about possible charges. Did he get indicted for anyone of those?


On Jul 27 10:21 AM whidbey wrote:

> Your credibility is shot to hell when you have to compare Spitzer
> to Bush to justify your harping on his nonsense attempts to re-enter
> the public scene..
>
> Spitzer resigned for real reasons like possible charges of lying
> to investigators, hiding payments to his lady of the evening and
> possibly defrauding his family business, federal tax fraud, trafficing
> for immoral purposes, the Man Act. Oh yow, questionable moral character
> in public office, and the terrible image of a prosecutor, State Atty
> general violating every law he enforced.
>
> Now the meat does he know anything about the Fed? I think he proved
> he does not. and makes you a real disgrace to SA.

Financial Blog Watch: Don't Believe Everything You Read

To your well balanced post on financial blogging I want to add just one thing.
Most commercial media do not permit comments on their sites whereas only a few bloggers like CNBC's Larry Kudlow adhere to the same system in order to avoid justified criticism of factual errors or their sometimes very out-of-date views that have not adapted to such facts like the USA having turned from biggest creditor into biggest debtor since Nixon closed the gold window.
Bloggers are well advised to check for factual errors or potentially 6 billion eye pairs will correct them in their comment sections at an instant. I too learn a lot from comments which I keenly read as they assist in steepening my lifelong learning curve.

Map of the World's Resources: Nothing Under Europe's Soil

The paradigm has changed. Europe looted the rewst of the world of its resources in the past 2000 years. Now we have to pay for them, standing in direct competition with the Chinese who undoubtedly have deeper pockets.
In general I would say that self-moderation will become the buzz word as we cannot maintain the same resource wasting lifestyle 500+ million (whites) in the US and EUrope has been enjoying. Suddenly there are 5 billion non-Westerners demanding their fair share of the world's resources.

Monetizing the Debt: Explanation For Non-Economists, Bankers and Other Laymen

IMO Blogging is about expressing an opinion.


On May 11 09:04 AM Dave Raithel wrote:

> A non-polemical account would have been much appreciated, but I usually
> expect too much from people. About all this "essay" does is demonstrate,
> once again, that "economics" is not a science. Economics is a babble
> of competing claims about reality reflecting the interests of the
> babblers...