Economic History

     

 

 

Tyranny of the Living

 

Tradition… is the democracy of the dead.

K. Chesterton

 

[ed note: this article is from Bill Bonner’s archives, originally published June 20, 2003]

 

Yesterday’s news brought word from Deputy Defense Secretary Wolfowitz that U.S. troops would be in Iraq for the next 10 years. Also came an estimate of the cost: An extra $3 billion would have to be added to the defense budget for Iraq… and an extra $1.5 billion for Afghanistan.

“Avoid foreign entanglements,” cautioned the father of the country. But corpses have no voice and no vote, neither in markets nor in politics. They might as well be dead.

 

My WolfieWolfie, back when still protected

Cartoon by Steve Bell

 

Read the rest of this entry »

     

 

 

Crack Up!

BALTIMORE – The Dow rose on Wednesday morning… after Janet Yellen made soothing remarks about a “gradual” return to normal interest rates. Then investors must have realized that returning to normal is not on the Fed’s agenda. The Dow finished the day down 99 points.

We haven’t seen normal central bank policy since the Nixon years. Normal is a currency backed by gold, not by PhD economists. Only briefly and episodically, over the last 2000 years, has the world flirted with pure paper or “fiat” money. Every time, the affair was over in a short time… and regretted for a long time.

 

1-Fate_of_CurrenciesThe result of the usurpation of money by government

 

Read the rest of this entry »

     

 

 

“On this side of the law

On that side of the law

Who is weak? Who is wrong?

Who is for and who’s against… the law”

Johnny Cash

 

Were We Unfair to the Oregon Protesters?

We return our attention to the freedom fighters holed up on the high plains… and their standoff with the law in a federal bird sanctuary in Oregon.

 

nancy-steve-ross-sepia-effect-of-cowboys-riding-seneca-oregon-usaOn the plains of Oregon…

Photo credit: Nancy & Steve Ross

 

Read the rest of this entry »

     

 

 

A Dangerous Spot

SANTORINI, Greece – “Gods were gods. Men were men,” explained our tour guide, Spiros.

“The ancient Greeks thought there was a difference. Men had to realize they weren’t gods. They couldn’t do the things gods could do. If they tried, it provoked a disaster. The gods got jealous and punished them.”

What has changed? There are still things humans can and can’t do. When men get too big for their britches, the gods still punish them. The disaster we were looking at had nothing to do with the hubris of mankind. The problem was geological.

 

santoriniSantorini – world improvers from Hollywood have apparently found housing there.

Photo via kiklamino.com

 

Read the rest of this entry »

     

 

 

Chockablock with History

ON THE WINE DARK IONIAN SEA – We drove from Palermo to Agrigento, thence to Syracuse and finally Catania. This was a quick visit to Sicily, not enough to learn very much.

Sicily is complex. It deserves time. If we had more, we would rent an apartment and get to know it better. But now we are on a ship, headed to the Greek island of Santorini.

 

mediterranean

 

mediterranean 2Mediterranean views…

Photo credit: fmh

 

Read the rest of this entry »

     

 

 

Looking at the Big Picture

Step back. Look at the big picture. Stocks are near record highs. Investor sentiment has never been more bullish. The VIX, which shows the options market’s expectation of 30-day volatility in stocks, is near record lows.

But the US stock market – broadly measured by the S&P 500 – is “above the line” of our Simplified Trading System (STS). It’s trading above 20 times reported earnings. The index could go much higher. But our simple approach tells us that the safe gains are behind us. It is better to be out than in.

 

small-dollar

Read the rest of this entry »

     

 

 

Or:  Who Knew The F***ing Lions Could Swim?

I found myself in a Northern one-horse town some 20 miles west of Aquilea  with no apparent means of getting back to Rome. No, let me amend that, from my personal perspective, it might as well have been a no-horse town. Romans and their money! With every new emperor the denarius becomes worth less than before. And so the ten denarii I still called my own (which of course were all new denarii) wouldn't even buy me a horse. Thanks much, emperor!  Actually, when I left Aquilea – rather in a mad rush on the spur of the moment – I had a lot more money with me than ten denarii. Little did I know that pillaging gangs of Marcomanni had already invaded the empire. I learned about this the hard way, as I encountered a troupe of these bandits three leagues to the West of Aquilea. I can thank Glycon – all hail Glycon!-  and probably several of the other gods profusely that I actually survived the encounter. After all, it is well-known what these Germanic brutes are capable of when they are putting their mind to it. Unfortunately this inadvertent crossing of paths with the barbarian hordes cost me my horse and most of my money. Not to mention my coat and my boots. The only reason why I was left these 10 denarii was that they didn't find my spare purse, which I wear affixed in a place that robbers don't check most of the time, unless they're really hard up. In a way it is an example of poetic justice, or injustice, depending on one's viewpoint. I probably should accept my fate without demur though, since I had to agree with Alexander that to remain in Aquilea was simply no longer an option.

That cheeky little git Commodus – what is he, 10 years old? 11? – even made up a limerick about some unnamed 'Greek fraud and his Roman butt-boy' that he kept reciting all day long and it was pretty clear to everyone whom he meant. I swear that rascal has a glint of Caligula in his eye, it's probably no coincidence that he shares his birthday. Of course the auguries all pronounced a glorious future for the git when he was born, regardless of that unmistakable  hint the date of his birth provided them with. I actually doubt that he is the emperor's son, he's much too healthy for that.  Faustina must have cuckolded Marcus, the gods know she had plenty of opportunity. To think that this naughty and cruel child could one day become emperor makes me shudder. Anyway, that very same day, when we had retired after dinner, Alexander called for me, inviting me to a night-cap. We inevitably turned to discussing recent events with a good helping of trepidation and Alexander pointed out that it was probably rather significant that no-one had attempted to discipline the boy. His tutors made as though they hadn't heard anything, a number of people were giggling as if he had told the joke of the year and the emperor himself reacted mainly by occasionally fixing us with that rather cold glare he sometimes affects.

 

Read the rest of this entry »

     

 

 

The ANC, Communism and Umkontho we Sizwe

A veritable flood of articles has been published in the mainstream media in recent days on occasiom of South Africa's first black president, Nelson Mandela passing on recently. We want to take a look at a few aspects of Mandela's and South Africa's history that have not received as much attention as they probably deserve. Most of the world is understandably (and rightly) fawning over Mandela and his achievements, but the US state department had him designated as a terrorist until 1990 and for several decades regarded him as a communist sympathizer. Of course every feted revolutionary leader who has managed to vanquish the oppressors of his people was a 'terrorist' at some point in the past. Anyone who leads an armed revolt against a government is designated a terrorist by those he fights.

 

Read the rest of this entry »

     

 

 

1600 Years Ago, in the Year 412 AD, or 1156 Ab Urbe Condita (since the founding of Rome) …

In 412, the Western Roman Emperor Honorius (full name Flavius Honorius Augustus), the son of Theodosius I.,  teamed up with the Visigoth king Ataulf (also: Atawulf, the 'father of wolves') against the usurper Jovinus.

Jovinus had unilaterally proclaimed himself Augustus and made his brother Sebastianus his co-emperor, taking control of Northern Gaul with the help of the Gallic nobility as well as King Gundahar of the Burgundians and King Goar of the Alans. The Burgundians used the opportunity to establish themselves on the Roman side of the Rhine, founding a new kingdom there with Worms as the capital.

Ataulf marched from Italy to Gaul, with ex-emperor Priscus Attalus and Honorius' half-sister Galla Placidia in tow as hostages, ostensibly to join Jovinus.  While on the way, Ataulf crossed paths with another Visigoth chieftain named Sarus, who was supposed to help Jovinus militarily. Ataulf evidently wanted to be the only Visigoth of importance in Gaul and without further ado decided to attack and kill Sarus.

 

Read the rest of this entry »

     

 

 

How to Deal with Economic History

In a recent article at the NYT entitled 'Incredible Credibility', Paul Krugman once again takes aim at those who believe it may not be a good idea to let the government's debt rise without limit. In order to understand the backdrop to this, Krugman is a Keynesian who thinks that recessions should be fought by increasing the government deficit spending and printing gobs of money. Moreover, he is a past master at presenting whatever evidence appears to support his case, while ignoring or disparaging evidence that seems to contradict his beliefs.

Among the evidence he ignores we find e.g. the 'stagflation' of the 1970's, or the inability of Japan to revive its economy in spite of having embarked on the biggest government deficit spending spree ever in a modern industrialized economy. Evidence he likes to frequently disparage is the evident success of austerity policies in the Baltic nations (evident to all but Krugman, one might say).

 

Read the rest of this entry »

     

 


 

Something Is Cooking

 

By now it has made the rounds that both Super Mario and Thomas Jordan, chairman of the 'Zimbabwe of the Alps' (h/t Jim Grant) suddenly have found out they are either too busy with urgent work or have prior engagements that keep them from appearing at Jackson Hole.

This is potentially quite significant, as whenever these guys postpone long awaited public appearances at important meetings, they are hatching out something big, which they then spring on us mere mortals at the earliest opportunity. The Jackson Hole pow-wow certainly qualifies as an important meeting, as all the CB bigwigs tend to go there, accompanied by a gaggle of academic apologists for central monetary planning who give them new ideas. Everybody gets to hold a speech or present a paper, and we can be fairly sure that the informal gatherings are inter alia used to talk about policy coordination.

 

Read the rest of this entry »

     

 

 

… or Why Trying to Prove a Point about Economics with 'Just Two Charts' is a Really Bad Idea

 

The Gold Standard Debate Revisited

The discussion over the GOP's gold standard proposals continues in spite of the fact that everybody surely knows the idea is not even taken seriously by its proponents – as we noted yesterday, there is every reason to believe it is mainly designed to angle for the votes of disaffected Ron Paul and Tea Party supporters, many of whom happen to believe in sound money. As we also pointed out, there has been a remarkable outpouring of opinion denouncing the gold standard. Unfortunately many people are misinformed about both economic history and economic theory and simply regurgitate the propaganda they have been exposed to all of their lives. Consider this our attempt to present countervailing evidence. 

Read the rest of this entry »

Most read in the last 20 days:

  • India: The Lunatics Have Taken Over the Asylum
      Goods and Services Tax, and Gold (Part XV) Below is a scene from anti-GST protests by traders in the Indian city of Surat. On 1st  July 2017, India changed the way it imposes indirect taxes. As a result, there has been massive chaos around the country. Many businesses are closed for they don’t know what taxes apply to them, or how to do the paperwork. Factories are shut, and businesses are protesting.   A massive anti-GST protest in Surat  [PT]   Increases...
  • Adventures in Quantitative Tightening
      Flowing Toward the Great Depression All remaining doubts concerning the place the U.S. economy and its tangled web of international credits and debts is headed were clarified this week. On Monday, Mark Yusko, CIO of Morgan Creek Capital Management, told CNBC that:   “…we’re flowing toward the path of 1928-29 when Hoover was president. Now Trump is president. Both were presidents with no experience who come in with a Congress that is all Republican, lots of big promises,...
  • The Student Loan Bubble and Economic Collapse
      The Looming Last Gasp of Indoctrination? The inevitable collapse of the student loan “market” and with it the take-down of many higher educational institutions will be one of the happiest and much needed events to look forward to in the coming months/years.  Whether the student loan bubble bursts on its own or implodes due to a general economic collapse, does not matter as long as higher education is dealt a death blow and can no longer be a conduit of socialist and egalitarian...
  • How Dumb Is the Fed?
      Bent and Distorted POITOU, FRANCE – This morning, we are wondering: How dumb is the Fed? The question was prompted by this comment by former Fed insider Chris Whalen at The Institutional Risk Analyst blog.   They're not the best map readers, that much is known for certain. [PT]   [O]ur message to the folks in Jackson Hole this week [at the annual central banker meeting there] is that the end of the Fed’s reckless experiment in social engineering via QE and...
  • Tales from the FOMC Underground
      A Great Big Dud Many of today’s economic troubles are due to a fantastic guess.  That the wealth effect of inflated asset prices would stimulate demand in the economy. The premise, as we understand it, was that as stock portfolios bubbled up investors would feel better about their lot in life.  Some of them would feel so doggone good they’d go out and buy 72-inch flat screen televisions and brand-new electric cars with computerized dashboards on credit.   The Wilshire...
  • Which Is Worse? America or France?
      French Fraud POITOU, FRANCE – “Which is worse? America or France?” The question must be put in context. We were invited to dinner with local farmers last night. Jean-Yves and Arlette live in a modest house in the nearby town – an efficient and cozy place built about 25 years ago. They’ve added a solarium to the back, where we had dinner.   FAF – French-American Friendship. These days it's a “which is worse” competition... [PT]   Arlette operates a...
  • No “Trump Bump” for the Economy
      Crackpot Schemes POITOU, FRANCE – “Nothing really changes.” Sitting next to us at breakfast, a companion was reading an article written by the No. 2 man in France, Édouard Philippe, in Le Monde. The headline promised to tell us how the country was going to “deblock” itself.  But upon inspection, the proposals were the same old claptrap about favoring “green” energy... changing the tax code to reward one group and punish another...  and spending more money on various...
  • Putting the Latest Silver Crash Under a Lens
      An Unenthusiastic Market On Thursday, July 6, in the late afternoon (as reckoned in Arizona), the price of silver crashed. The move was very brief, but very intense. The price hit a low under $14.40 before recovering to around $15.80 which is about 20 cents lower than where it started.   1 kilogram cast silver bars from an Austrian refinery. These are available in 250 g, 500 g and 1 kg sizes and look really neat. We use the 250 g ones as paperweights, so this is an...
  • Gold and Silver Capitulation – Precious Metals Supply & Demand Report
      Last Week in Precious Metals: Peak Hype, Stocks vs. Flows and Capitulation The big news this week was the flash crash in silver late on 6 July.  We will shortly publish a separate forensic analysis of this, as there is a lot to see and say.   Silver - 1,000 troy ounce good delivery bars, approved by the COMEX. Whatever you do, do not let one of these things land your feet. For readers used to the metric system: these bars weigh approximately between 28 to 33 kilograms...
  • The Dangerous Season Begins Now
      Old Truism Readers are surely aware of the saying “sell in May and go away”. It is one of the best-known and oldest stock market truisms. And the saying is justified. In my article “Sell in May and Go Away – in 9 out of 11 Countries it Makes Sense to Do So” in the May 01 2017 issue of Seasonal Insights I examined the so-called Halloween effect in great detail. The result: in just two out of eleven international stock markets does it make sense to invest during the summer...
  • Stockholm Syndrome – Precious Metals Supply and Demand
      Hostages of Irredeemable Scrip Stockholm Syndrome is defined as “…a condition that causes hostages to develop a psychological alliance with their captors as a survival strategy during captivity.” While observers would expect kidnapping victims to fear and loathe the gang who imprison and threaten them, the reality is that some don’t.   Images from the Kreditbanken robbery at Norrmalmstorg in central Stockholm in 1973. The two bank robbers took four hostages, who...
  • The Myth of India's Information Technology Industry
      A Shift in Perception – Indians in Silicon Valley When I was studying in the UK in early 90s, I was often asked about cows, elephants and snake-charmers on the roads in India.  A shift in public perception— not in the associated reality — was however starting to happen. India would soon become known for its vibrant IT industry.   Friends and family are helping students taking university exams with cheating. 2.5 million candidates, many of them with PhDs or post-graduates,...

Support Acting Man

j9TJzzN

Austrian Theory and Investment

Own physical gold and silver outside a bank

Archive

350x200

THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Realtime Charts

 

Gold in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Gold in EUR:

[Most Recent Quotes from www.kitco.com]

 


 

Silver in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Platinum in USD:

[Most Recent Quotes from www.kitco.com]

 


 

USD - Index:

[Most Recent USD from www.kitco.com]

 

 
Buy Silver Now!
 
Buy Gold Now!
 

Oilprice.com

savant