Category: Economics
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Value of a Diamond in the Rough
Q: I’m having trouble understanding your statement that all value is subjective. I can clearly see how it applies to a diamond, but not to food. Food is necessary for life. Its value seems to be inherent or fundamental to the food itself. But you cannot eat a diamond. Its value is determined by passing…
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Is the Fed About to Light the Fuse on a $9 Trillion Debt Bomb?
The US Federal Reserve (Fed) and European Central Bank (ECB) have created a very dangerous situation. Throughout the last six years, there has been a sense of coordination between the Fed and ECB. This was evident both in terms of where capital went as well as how it was delivered via monetary policy. For instance,…
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Get Ready for Crazy – Jeff Thomas
Recently, the Honduras homes and businesses of the family of Jaime Rosenthal were raided by the Honduran government. The properties themselves were seized and other assets taken. The family-owned bank was also seized and has been forced into liquidation, creating potential financial crisis for its 220,000 clients. Throngs of angry clients, unable to go about…
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The Next Thing Might Be Helicopter Money
James Grant, Wall Street expert and editor of the investment journal Grant’s Interest Rate Observer, warns of ever more extreme central bank policies and bets on the comeback of gold. The global financial markets are under severe stress. The postponed interest rate hike in the United States, the fast cooldown of the Chinese economy and…
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Mark Farber is a Real Economist
Q: Mark Farber recently observed that the USA economy based on savings, capital investment and production did well from about 1820 to 1971 and, based on money printing, from 1971 to today, has not done well. Your comments? A: Mark Farber is a real economist and competent wealth manager. He is not a political propagandist…