One of the striking ironies of our modern financial system is that government bonds are considered safe-haven investments, while gold is a “barbarous relic” to be avoided at all costs. Since the 2008 financial collapse, the bond market has been on a … [Continue reading]
Last week, on July 30, the Republic of Argentina was declared to be in default for the third time in 30 years. Let's put that into perspective. If you were a bank closing on a 30-year mortgage to the Government of Argentina in the early '90s, you … [Continue reading]
Back in June of 2014, the European Central Bank (ECB) made a historic and downright diabolical announcement - they inaugurated negative interest rates for overnight deposits. Here are the details from the official transcript: The rate on the deposit … [Continue reading]
The Setting: The Bank and Currency Committee, Washington, DC, 1912.In the Panic of 1907, the stock market fell over 50% in one day and caused massive bank runs. Bailouts had done little to restore confidence. Five years later, all this still lingered … [Continue reading]