Trade. It’s one of the most topical subjects in global economics these days given Donald Trump’s apparent partiality to so-called trade wars. Economists on both sides of the political divide seem to agree that tariffs and other trade barriers are bad, and that free-trade is better for everyone. In theory, this is true. However, the … Continue reading The Trump Trade
Democracy. Chances are you've been brainwashed into thinking it's the ultimate political system. It is, after all, government "by the people, for the people", and therefore must surely be the best and fairest system of government? It isn't, and the reason why was well understood by the founding fathers of the United States: “Democracy is … Continue reading The Fallacy of Democracy
It's been quite a while since my last post and since then, a whirlwind of events have occurred that will shape the global economy in 2018 and beyond; the bitcoin bubble exploded to levels not seen since the Tulip mania of 1936-37, the US stock market bubble exploded to levels not seen since 2001, private … Continue reading What the crystal ball has to say about 2018
Let me start by saying that I do believe that blockchain-based money is the future, but there are mountains to climb and financial crises to endure before we get there, and when we do, Bitcoin will undoubtedly NOT be part of the landscape. I've previously outlined some of the reasons it simply won't work in … Continue reading The Inconvenient Truth About Bitcoin
Warren Buffett is a man who isn't short on words of wisdom. One of his more famous quotes on getting rich, is to "be fearful when others are greedy, and be greedy when others are fearful". With that in mind, take a look at Berkshire Hathaway's cash position over the last decade: As at … Continue reading Buffett’s Cash Hoard: A Reason to be Fearful
If you're reading this, chances are you have a bank account, perhaps multiple accounts, to manage your 'savings' and investments (we'll get to why savings is embraced by inverted commas later). Your salary, business, or other income is most likely paid into your bank account, and you spend it using a little plastic card. You … Continue reading How the Banking System Really Works
Last week in a speech at an event in London, Janet Yellen, Chair of the Federal Reserve, was quoted saying that she does not believe there will be a run on the banking system at least as long as she lives. Despite widespread criticism from analysts claiming another financial crisis is not only possible but … Continue reading Yellen Desperate to Avoid Financial Crisis Before the End of Her Term
"Blight" is a botanical term that refers to the extensive discoloration, wilting, and death of plant tissues, not too dissimilar to the erosion, devolution and depression of the Australian economy. That may seem like a harsh assessment of an economy that has been ticking along quite nicely for decades, an economy so strong it hasn't … Continue reading The Great Australian Blight
BREAKING NEWS: Unknown Bitcoin founder, Satoshi Nakamoto, who is believed to own in excess of 1 million Bitcoins valued at over US$2.5 billion, has been found dead in his penthouse apartment in central Tokyo. The cause of death has not been revealed by authorities investigating the murder. Wait, that last sentence didn't make sense... in … Continue reading Satoshi Nakamoto is Dead!
Harry Dent is one of the best economic researches out there. His website http://www.economyandmarkets.com has a wealth of analysis on the coming economic crisis that I strongly recommend you follow (along with my work, of course). Interestingly, Harry's position on gold is bearish. My view, as outlined in my book The Economics of the Economy … Continue reading The Top 7 Cases Against Gold… Debunked!