// archives


This category contains 20 posts

Debate about the existence of cycle in the economy

Classical economic theory always points at the fact that cycle can be observed helping corporate to adjust spending regarding the momentum. But it’s actually uncertain how to define the existence of cycle in the economy, since several factors can be used as a reference, such as the investment cycle, the consumption curve, the interest rate [...]

Two cases of risk aversion, financing and consumption

Everybody knows that the bubble crisis wasn’t due to the failure of the past monetary policy. It’s clear right now that the absence of selectivity regarding the investment strategy has strongly damaged the economic structure. The problem was how to ensure credible return without any instruments to measure the industrial impact of the innovation. The [...]

Evolution of the currency market: Approach by the reserve of value definition

Today’s most popular debate concerning the economy is the extreme instability of the exchange rate, particularly the evolution of the US dollar. The green money currently destabilises currency markets around the world, and most of the explanation regarding its recent movements are focused on the macroeconomic data released by the US government. Despite justified uncertainties [...]

Absent Returning to a Gold Exchange Standard, the Fed Must Target One Gold Price

Since the U.S. completely severed the dollar’s link to gold in 1971, the Fed has tried in vain to maintain a stable dollar in various ways including interest rate targeting, M1/M2 targeting, even the targeting of the economy itself. While this approach gave us a strong seventeen year run (1983-2000), it also gave us the [...]

The Hidden Risks of Mortgage Backed Securities

Mortgages function like a bank account did in the previous century. Features including the ability to draw out liquidity, perception of continual appreciation-compounding, an implied federal guarantee for MBS securities, and the role as the primary savings instrument for the majority of people in the nation speak to that point. Safeguards present to protect against [...]

The Weak Dollar

There has been a lot of concern over the weakening U.S. dollar throughout the world. Worries abound about a weak dollar doing everything from pushing up inflation and raising interest rates to lowering the standard of living in the United States. The dollar’s slide can be attributed to many things. Disapproval of the U.S. involvement [...]

The US Monetary Monopoly under Challenge and a New World Order

The US has become an export and import driven economy but not in the traditional sense as it normally gets defined through the exchange of goods and services. The major difference being that for six decades the US has retained the sole right and privilege of controlling and allocating international working capital. The mechanisms for [...]

Japan: the Missing Economic Link to the War on Iraq

Overview Economic Conditions in Japan are the Missing Link to Expose the Weakness of the Global Economy and the Coming US War on Iraq. Analysis The abysmal financial condition of Japanese Banks and their unwillingness over past decade to restructure bad debts and recover from poor investments will accelerate with the deteriorating quality currently visible [...]

Value in Gold

The value of gold pertains and relates directly to the metal having acceptance as currency. Gold finds its optimum value when it can be used as a currency to store wealth, guarantee paper, or effect transfer in goods and services. Perceived or functional demand for anything creates value. Societal culture and structure will dictate what [...]

Chinese Oil Shock, the US Dollar, and North Korea

Domestic Security represents the primary managerial objective for the Chinese government. An unavoidable oil shock has been trending against that paramount goal. With or without US involvement in Iraq, China stands at the cusp of an oil shock because of its efforts to expand the economy, its inadequate transportation network., and the lack of domestic [...]