Posted by Jake 4 Constitution on 12/27/08

One of Lord John Maynard Keynes's essays "The Great Slump of 1930" is extremely relevant today as we look forward at the 2009 economy and future governmental antics. Let's take a look!

The outstanding contemporary relevance of Lord Keynes’ short essay "The Great Slump of 1930" comes from the fact that Keynes faced very similar dire auspices as he grappled with the uncertain future of the 1930 global economic downturn.  At the time he wrote the essay, Keynes was trying to explain both the origins of the crisis and its future length and severity.  Needless to say, he missed the boat completely, although like a good medieval soothsayer he did manage to hedge his bet a little.  Obviously, the "Great Slump" was not a temporary downturn but instead heralded the Great Depression, which would last until the wartime economy of WWII stimulated industry in the United States while utterly destroying Europe, the epitome example of lost wealth via Henry Hazlitt’s "broken window" illustration.  Based on recent FED manuevers and Obama's future taxation and government expansion plans, most likely the modern-day Keynesian-Friedmanite command-and-control corporate governments will respond in a similar hapless manner as Keynes’ abject failure almost 80 years ago. (photo)

To continue reading, please visit

http://www.nolanchart.com/article5674.html

Posted by Jake 4 Constitution on 12/27/08

The claim that the "gold standard" caused or worsened the Great Depression debunked.

The purpose of the following is to argue that the "gold standard," as understood by most of the public, did not cause or worsen the Great Depression as current FED Chairman Ben Bernanke has based many of his papers, speeches, and, to a large extent, his entire career on. In our contemporary times, I do believe this blame must be firmly rejected and monetary policy should, at the very least, be debated in a national forum. Indeed many other economists, such as the Friedman family, Anna Schwartz, Alan Greenspan, and Jeffrey "Shock Doctor" Sachs, have all propagated this lie.  (photo)

My premise is simple.  I charge that these renowned Keynesian and Friedmanite-Monetarist-Chicago-Shock-School economists have consistently used the term "gold standard" to mislead their audiences and readers. For the sake of brevity, I will focus on Mr. Bernanke as he is the current standard-bearer of the FED's fiat monetary system. Frequently, these economists do concede there are differences, but instead of clarifying they muddy the waters. For instance, in his 1990 NBER paper Bernanke frequently refers to an "interwar gold standard" and in his 2002 salute to Milton Friedman he acknowledged that "the gold standard was not adhered to uniformly as the Depression proceeded."

To continue reading, please visit

http://www.nolanchart.com/article5706.html

Posted by Jake 4 Constitution on 12/27/08

One of Lord John Maynard Keynes's essays "The Great Slump of 1930" is extremely relevant today as we look forward at the 2009 economy and future governmental antics. Let's take a look!

The outstanding contemporary relevance of Lord Keynes’ short essay "The Great Slump of 1930" comes from the fact that Keynes faced very similar dire auspices as he grappled with the uncertain future of the 1930 global economic downturn.  At the time he wrote the essay, Keynes was trying to explain both the origins of the crisis and its future length and severity.  Needless to say, he missed the boat completely, although like a good medieval soothsayer he did manage to hedge his bet a little.  Obviously, the "Great Slump" was not a temporary downturn but instead heralded the Great Depression, which would last until the wartime economy of WWII stimulated industry in the United States while utterly destroying Europe, the epitome example of lost wealth via Henry Hazlitt’s "broken window" illustration.  Based on recent FED manuevers and Obama's future taxation and government expansion plans, most likely the modern-day Keynesian-Friedmanite command-and-control corporate governments will respond in a similar hapless manner as Keynes’ abject failure almost 80 years ago. (photo)

To continue reading, please visit

http://www.nolanchart.com/article5674.html

Posted by Jake 4 Constitution on 12/14/08

The Money Matrix - What the Heck Are Derivatives? (PART 10/15)

---

This article seeks to define financial derivatives and why they are so important. Future and spot market basics are also examined so the Reader understands how the price of gold and silver is determined.

---

by Jake, the Champion of the Constitution
Tuesday, December 9, 2008

First, why should we care?

"Derivatives are financial weapons of mass destruction." Warren Buffet, 2003

Good enough. Reader, the term "derivatives" have been bandied about and even demonized by many writers (including myself), so it's best to understand them and their importance. This article will first define derivative, fully answer the above question, and in the third section give a quick lesson on some future and spot market basic terms.

To continue reading, please visit

http://www.nolanchart.com/article5620.html

Posted by Jake 4 Constitution on 12/14/08

More on Gold and Silver Backwardation and Manipulation (5/5)

---

"Gold going to permanent backwardation means that gold is no longer for sale at any price, whether it is quoted in dollars, yens, euros, or Swiss francs... To put it differently, all offers to sell gold are being withdrawn." - Dr. Antal Fekete

---

by Jake, the Champion of the Constitution
(Libertarian)
Sunday, December 14, 2008

In this article we will take a look at some alternate but constructive views of Fekete's recent articles on gold backwardation, covered in earlier articles in this series. I want to note it appears to be a perfect storm shaping up, although it not yet outside the grasp of short-term government manipulation, especially if there is the hint of a panic, or "gold fever" developing. The price of gold and silver are both up over the past week as both metals are in (temporary for now) backwardation, but the price does not have a high degree of relevance. All eyes are on the gold basis will probably drive the price which you can learn about by reading the below mini-series. (Photo) (2)

To continue reading, please visit

http://www.nolanchart.com/article5640.html

Part I: "The End for the Dollar and all Fiat Currencies (1/5)"

Part II: "The Next Bubble to Pop! (2/4)"

Part III: "On Gold and Market Manipulation (3/5)"

Part IV: "The Significance of Gold Backwardation Explained (4/5)"

Supplement to explain futures market basics and backwardation: "The Money Matrix - What the Heck Are Derivatives? (PART 10/15)"