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Showing posts from March, 2015

The fall of tyranny, the rise of liberty

Summary: Massive debt is sealing the fate of governments and central banks.  As the cards collapse, radical developments in diverse areas of technology, combined with free market entrepreneurship, will destroy and rebuild the existing social order.   
Trouble begins when bureaucracies replace free markets.  In the U.S., we find money, the lifeblood of the economy, resting in the hands of a board of bureaucrats whose statements the financial punditry spends their waking hours trying to decipher.  What does this portend for the foreseeable future?  Ben Wright, Group Business Editor at The Telegraph, takes us through one possible scenario.
The total value of all global equities was around $70 trillion in June last year, according to the World Federation of Exchanges; meanwhile, the notional value of all outstanding derivatives contracts was more than $690  trillion. It is worth noting that the vast majority (around four-fifths) of all existing derivatives contracts are based on interest ra…

How to short Western Civilization

Below are excerpts from a St. Patrick's Day article written by Gary North.  The full article is accessible only from a paywall.

The Logic of Gold and Anti-gold Investing by Gary North

When you buy gold, you are shorting Western civilization.

I have been saying this for 50 years, and I will not stop saying it.

When you buy gold, you are shorting Keynesianism. You are shorting the Chicago School of economics. You are shorting the stock market. You are shorting currencies. You are saying to yourself, loud and clear, that you do not believe that a world controlled by central banks is a stable, reliable world. . . .

The best thing you have that will defend you against really bad times is a good job: voluntary exchange. You need continuing income, based on the sale of your labor services. . . It is your job, meaning your productivity, that is the source of most of your wealth. The rest of your assets are simply used as a temporary backstop to bail you out when you lose your primary sourc…