The 80/20 rule
Recent statistics are confirming “economic recovery” in the UK and even some of the weaker eurozone states. I put this in quotes, because what…
The unstoppable growth of US money supply
After all the fuss about tapering, it is worth remembering that central banks can and do expand the money quantity without quantitative easing. Put…
Central bank balance sheets
Now that there is growing evidence of GDP growth, we must consider a new topic: the likely effect on central bank balance sheets, using…
Monetary inflation prospects
On Wednesday last the Fed surprised most people by deciding not to taper. What is not generally appreciated is that once a central bank…
No tapering, no surprise
It was not too surprising that there is going to be no tapering for some very good reasons. The commencement of tapering would have…
Price inflation approaching
There is some evidence in the UK of a pick-up in consumer spending, probably echoed elsewhere. There are two likely factors behind this, the…
Untangling gold at the Bank of England
From 2006 the Bank of England’s Annual Report has declared the quantity of gold in its custody, including the UK’s own 310 tonnes. Prior…
The problem with regulation
It is seems to be universally agreed that regulation is a good thing, ensuring that people are treated fairly by unscrupulous businesses. Regulation is…
Gold’s undervaluation is extreme
The price of gold fell last week to the $1,200 level. The lemming sentiment in capital markets is uniformly bearish, yet every price-drop brings…
Russia and China building their gold reserves
Western economic commentary on China and Russia is usually coloured by monetarist assumptions not necessarily shared in Moscow and Beijing. For this reason, Russian…