Although this could be an interesting next several years in American politics, depending on whether or not the Republicans actually got the message the American people really sent, nothing will be more fun to watch and informative as Rep. Ron Paul (R-Texas) being named chair of the House subcommittee overseeing monetary policy.
If you though Paul put Bernanke's and others' feet to the fire before, I don't think we've seen anything yet if Republicans do the right thing and appoint him there.
There is no doubt part of the uprising from the electorate was inspired by Ron Paul, and that part of it associated with monetary policy most definitely was.
Paul has rightly blasted the policies of the Federal Reserve, which has become so powerful it pretty much does whatever it wants with impunity, led by whoever the chairman is at the time.
Forget the American presidency, the most powerful man in America is the one chairing the Federal Reserve, and that is of course Ben Bernanke. Hopefully when Paul is through with both the Fed and Bernanke, they'll be taken down a big notch and on the road to weakened power, and ultimately in the years ahead, its eventual abolishment.
But more realistic and possible in the short term is for the Federal Reserve to be forced to open its books so the American people can see that they're up to.
“We need to create transparency there. To see what it is they are buying and lending, and who it is they are dealing with,” said Paul.
Other things Paul wants to accomplish is to use the position to educate the public on Austrian economics, which as part of its core, sees central banks and their shady dealings as the reason for the seemingly endless business cycles, not the free market, which the socialists attempt to paint the economic problems with.
Paul also wants to audit the gold reserves of the U.S. in order to prepare for a competing currency market and hopefully return to a gold standard.
Finally, part of his ambitious goal is to look much closer at the International Monetary Fund and other global financial institutions who want to institute a global currency.
“We will have to have monetary reform. I think those on the other side of this issue are already planning. They are going to try to replace a bad system with an equally bad system,” Paul concluded.
Ultimately Paul doesn't see the U.S. dollar being able to remain the reserve currency of the world.
Go Ron! This is not going to be boring or business as usual in Washington if Paul is named as chairman of the subcommittee. If he isn't, the Republican leadership will hear from us quickly.
Showing posts with label Monetary Policy. Show all posts
Showing posts with label Monetary Policy. Show all posts
Friday, November 5, 2010
Wednesday, March 24, 2010
Citigroup (NYSE:C) Analyst Projects China Bust
China going to bust?
Citigroup (NYSE:C) analyst Willem Buiter has joined a chorus of others who have predicted China is set for a bust, and Buiter claims it could last for a period of three years, and doesn't believe it can be avoided, even if China tightens its monetary policies, which it has said it was going to do, but hasn't yet.
Like others, Buiter largely bases his assertion on the residential and commercial real estate markets in China, which could end up creating a domino effect.
The one problem I have with Buiter is the idea is also based on whether or not the Chinese government is doing anything.
“What is policy in China doing about the threat of overheating in the financial and real economy?” Buiter said. “The short answer is: not much, and not enough to prevent the creation of what could become a major asset boom, bubble and bust.”
Obviously this is a Keynesian thought, and economists like this think the world is falling if the government isn't interfering.
China for its part says they've seen nothing to indicate their economy is in a state of recovery. I think the West could take a lesson from that observation as well. Everywhere you read the mainstream media makes it sound like we're really in a big recovery, when data shows we're far form that being a reality.
Citigroup (NYSE:C) analyst Willem Buiter has joined a chorus of others who have predicted China is set for a bust, and Buiter claims it could last for a period of three years, and doesn't believe it can be avoided, even if China tightens its monetary policies, which it has said it was going to do, but hasn't yet.
Like others, Buiter largely bases his assertion on the residential and commercial real estate markets in China, which could end up creating a domino effect.
The one problem I have with Buiter is the idea is also based on whether or not the Chinese government is doing anything.
“What is policy in China doing about the threat of overheating in the financial and real economy?” Buiter said. “The short answer is: not much, and not enough to prevent the creation of what could become a major asset boom, bubble and bust.”
Obviously this is a Keynesian thought, and economists like this think the world is falling if the government isn't interfering.
China for its part says they've seen nothing to indicate their economy is in a state of recovery. I think the West could take a lesson from that observation as well. Everywhere you read the mainstream media makes it sound like we're really in a big recovery, when data shows we're far form that being a reality.
Monday, March 22, 2010
Marc Faber: Chinese Economy Will Slow, Not Crash
Marc Faber on Chinese Economy
Investment expert Marc Faber said the Chinese economy, which a number of economists and analysts have said could crash sometime soon, won't crash, but it will definitely slow down in the second half of 2010.
Some feel even if the Chinese economy does slow down, it'll still grow at a rate of 8 to 9 percent; solid growth by almost any standard.
Some American politicians, along with the increasingly irrelevant Paul Krugman, have been publicly blasting China for its monetary policy, a type of action that has never worked with Asian people, and is not the best way to gain cooperation.
China will eventually change its monetary policy, but these types of populist actions are just plain stupid and bad strategy.
The Chinese would win the battle if they simply decided not to acquire any more U.S. Treasury instruments, and could do more damage if they decided to sell them as well, as the Fed would then have to print hundreds of billions to purchase them, which would drive down the value of the U.S. dollar even more, which would bring a lot of consequences to the country.
Investment expert Marc Faber said the Chinese economy, which a number of economists and analysts have said could crash sometime soon, won't crash, but it will definitely slow down in the second half of 2010.
Some feel even if the Chinese economy does slow down, it'll still grow at a rate of 8 to 9 percent; solid growth by almost any standard.
Some American politicians, along with the increasingly irrelevant Paul Krugman, have been publicly blasting China for its monetary policy, a type of action that has never worked with Asian people, and is not the best way to gain cooperation.
China will eventually change its monetary policy, but these types of populist actions are just plain stupid and bad strategy.
The Chinese would win the battle if they simply decided not to acquire any more U.S. Treasury instruments, and could do more damage if they decided to sell them as well, as the Fed would then have to print hundreds of billions to purchase them, which would drive down the value of the U.S. dollar even more, which would bring a lot of consequences to the country.
Saturday, December 12, 2009
Printing Money Benefits Commodities
With central banks and governments addicted to printing money as their preferred strategy to salvage the economy, that will have long term benefit to commodities investors, as prices are sure to rise in response the the inflation-producing activity.
So one indicator all of those interested in commodities as an investment can look for is how their particular country is managing their money supply.
If they're printing money at a huge rate, you can count on inflation kicking in, especially with many commodity prices, and so you can be sure that, along with growing demand for commodities in Asia will ensure there's a ripe commodity market for some time into the future.
This doesn't mean all commodities will go up in price, but in general there will be an upward price movement in the commodity sector.
Add to this the demand for food, energy and precious metals, and you have a good look at where commodity demand, and ultimately prices will head. Just watch the amount of money being printed along with supply and demand as the major factors driving long term commodity prices.
So one indicator all of those interested in commodities as an investment can look for is how their particular country is managing their money supply.
If they're printing money at a huge rate, you can count on inflation kicking in, especially with many commodity prices, and so you can be sure that, along with growing demand for commodities in Asia will ensure there's a ripe commodity market for some time into the future.
This doesn't mean all commodities will go up in price, but in general there will be an upward price movement in the commodity sector.
Add to this the demand for food, energy and precious metals, and you have a good look at where commodity demand, and ultimately prices will head. Just watch the amount of money being printed along with supply and demand as the major factors driving long term commodity prices.
Wednesday, November 18, 2009
John Paulson Launching Gold Hedge Fund
With many investors starting to become true believers that gold still has a long way to go up, John Paulson, founder of Paulson & Co., has announced he's going to launch a new gold hedge fund January first, putting the seed money into the company himself of $250 million.
Paulson says he's going to buy assets primarily related to physical gold, including shares of gold miner stocks.
This isn't anything new for Paulson, who at this time is the largest investor in SPDR Gold Shares ETF (NYSE: GLD), a major way to invest in gold. Paulson also already owns shares in mining stocks as well. Paulson & Co. owns 31.5 million shares in SPDR Gold Shares, worth a hefty $3.24 billion.
Gold will continue to go up in price based on nothing other than the flawed monetary policy of the United States through the Federal Reserve. Politicians don't have the will at this time to make meaningful and lasting changes in the monetary policy, and other than Ron Paul, really have no understanding of the cause and effect of it.
Investor Jim Rogers has said recently that the price of gold should be standing at it inflation adjusted price of $2,000. Even so, he is in a holding pattern with gold at this time, saying he's not buying more gold, but he isn't selling either.
Paulson says he's going to buy assets primarily related to physical gold, including shares of gold miner stocks.
This isn't anything new for Paulson, who at this time is the largest investor in SPDR Gold Shares ETF (NYSE: GLD), a major way to invest in gold. Paulson also already owns shares in mining stocks as well. Paulson & Co. owns 31.5 million shares in SPDR Gold Shares, worth a hefty $3.24 billion.
Gold will continue to go up in price based on nothing other than the flawed monetary policy of the United States through the Federal Reserve. Politicians don't have the will at this time to make meaningful and lasting changes in the monetary policy, and other than Ron Paul, really have no understanding of the cause and effect of it.
Investor Jim Rogers has said recently that the price of gold should be standing at it inflation adjusted price of $2,000. Even so, he is in a holding pattern with gold at this time, saying he's not buying more gold, but he isn't selling either.
Wednesday, November 26, 2008
End The Fed - Houston Rally with Ron Paul Part One
Why the Federal Reserve needs to be abolished: Ron Paul
As the economy worsens and misguided government interference continues, it brings light to the reasons behind it, and it leads to the Federal Reserve, which Ron Paul calls to be abolished.
As the economy worsens and misguided government interference continues, it brings light to the reasons behind it, and it leads to the Federal Reserve, which Ron Paul calls to be abolished.
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