The Money Bubble

Japan is the world’s most rapidly-aging nation. To cite just one of many extraordinary data points, in 2012 its citizens bought more diapers for adults than for children.

as the trend progresses, it comes to be understood that the central, underlying system that is being corrupted is the currency, that most of today’s political and financial malfeasance depends on easy money, and that inflation is an ongoing policy of this pervasive new regime. When this realization becomes sufficiently wide-spread, the trends towar

The world’s governments thus find themselves in an ever-shrinking box. And all it will take to trigger the crisis is a return to historically-normal levels of interest rates. As recently as 2000, 30-year Treasury bonds yielded over 6 percent and 30-year mortgages cost 7.5 percent. Let rates return to those levels and the global financial system imp

To avoid having to repeat a disclaimer every time we mention a statistic, we’ll just say it here: Each time you see an official government number, there is an unspoken but implied assertion that it’s probably fictitious, but is being cited because even the distorted version backs up whatever point we’re making.

Chinese proverb says wisdom begins with calling things by their right name.

organizations are suffering from “peak complexity,” a concept crucial to understanding the recent evolution – and coming difficulties – of the broader economy.

Today’s fiat currencies emphatically meet the above bubble criteria. The prices of government bonds denominated in euro, yen and dollars have risen to extraordinary levels (which is the same as saying interest rates have been forced to extraordinarily-low levels). And befitting its size and scope, this bubble is rationalized with two popular mantra

As Figure 19.1 illustrates, when it takes about 20 or more ounces (622 grams) of gold to buy the Dow Jones Industrial Average, financial assets have become overvalued and are topping out, and it’s time to shift into real assets. Conversely, when less than two ounces (62 grams) of gold can buy the Dow Jones Industrials, then financial assets are che

Shortly after his inauguration in 1933, President Franklin Roosevelt concluded that US problems were serious enough to warrant devaluation of the dollar, among other aggressive policies. Under Article I, Section 8 of the Constitution, only Congress had the power to “regulate” 6 the relationship between the dollar and gold, but FDR claimed that auth