Perhaps staying out of wars, and quickly jailing greedy bankers, would be a start.
Saturday, June 20, 2009
Glory days
How did they do it? How can we do it again?
Perhaps staying out of wars, and quickly jailing greedy bankers, would be a start.
Perhaps staying out of wars, and quickly jailing greedy bankers, would be a start.
US Public Debt - annual rate of change
And the rate of change in the past has been frightening at times.
Here's the overall view from 1791 onwards:
Next, from 1945 to now:
Before that, The Roaring Twenties up to the end of World War II:
1900 - 1920:
1835 - 1900:
And from 1791 to 1835:
Here's the overall view from 1791 onwards:
Next, from 1945 to now:
Before that, The Roaring Twenties up to the end of World War II:
1900 - 1920:
1835 - 1900:
And from 1791 to 1835:
US Public Debt - the long view
The figures in the following graphs are from Treasury Direct. They are not adjusted for inflation, population size or GDP - all three of which would make interesting bases for comparison. But perhaps these pictures will show that the USA has come through equally bad, or worse, times before now.
Any more inconvenient truths?
"Only now can we afford the truth," concludes this book review . The book admits that the French Resistance made no significant difference to the course of the war, but the myth of the Maquis helped De Gaulle resist Allied attempts to break up the French Empire.
Do you believe that there is a right time for the truth to be revealed?
Can you give examples of any truths that should be revealed, or myths dispelled, now?
Do you believe that there is a right time for the truth to be revealed?
Can you give examples of any truths that should be revealed, or myths dispelled, now?
Friday, June 19, 2009
Chinese SWF: a subtle assault on the US dollar?
Jim Willie (a notable gold proponent) submits an interesting essay on China's influence in the currency and commodity markets.
Gold bugs say that the price of gold and other commodities has been held down by parties interested in maintaining the credibility of the US dollar. Willie thinks that the entry of a large Chinese sovereign wealth fund may foil such market manipulation in future, especially since the Chinese can back their hedge fund loans with their US Treasury holdings. An attempt to break a Chinese-held commodity position, if successful, could lead to a selloff of Treasuries and so crater the bond market, leading to raised interest rates and/or a drop on the dollar.
Between a rock and a hard place. This is what it is to be a debtor.
Gold bugs say that the price of gold and other commodities has been held down by parties interested in maintaining the credibility of the US dollar. Willie thinks that the entry of a large Chinese sovereign wealth fund may foil such market manipulation in future, especially since the Chinese can back their hedge fund loans with their US Treasury holdings. An attempt to break a Chinese-held commodity position, if successful, could lead to a selloff of Treasuries and so crater the bond market, leading to raised interest rates and/or a drop on the dollar.
Between a rock and a hard place. This is what it is to be a debtor.
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