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Archive for the ‘Commodities’ Category

Politicians of all countries, recollect yourselves!

Dear politicians, there’s no alternative to forever turning our backs on nuclear energy and fast. Sure, the nuclear industry will protest vigorously and will see profits dwindle but they will survive without much problem – as opposed to many Japanese. It is but a question of time until another country will be hit as well – we should have understood that much by now. The so-called residual risk is not just unlikely nor is it negligible. And if you don’t rise to this sad occasion and get behind your people (a majority of whom never fancied nuclear power), then you will not only risk the health and livelihood of countless human beings but also your own and, above all, your power. Read more…

Economic Musings X: Legal Tender – Legal or Tender or What?

2010-04-16 9 comments

After World War II when the German Reichsmark was discredited and people were starving they would travel from their city to the local farms … Read more…

Economic Fallacy II: Speculation is Harmful?

2010-01-27 1 comment

Apart from outright naval blockade or sieges there has probably been hardly another operation considered as deadly and therefore been at times revenged than what is deemed “profiteeringspeculation. The idea to many is that speculation robs honest people of their livelihood. Alleged speculators have been tortured, hanged, disenfranchised, robbed, denigrated, banned, imprisoned, scandalised and impoverished throughout human history and still today economic policy is rife with discussions on how to curb “illicit” forms of speculation. Read more…

Do we see a gold bubble?

In times where within less than a generation humankind has seen several asset bubbles come and go (Japan’s real estate and stock market bubbles, the tiger states, the Dotcom bubble and now housing in the US, but equally e.g. in Spain and elsewhere plus one brewing in China and maybe one again in the US) and still left standing albeit on feet of clay,  the recent rallies in gold obviously beg the question if we not only see another bubble, this time in gold. The argument seems to rest on the assumption that any price change with a certain gradient above “what feels right” must be unjustified. Read more…

1929 and 2007: two crises, similar causes, similar effects?

2010-01-21 9 comments

There are by now probably hundreds of thousands of media articles and blog posts around the world that deal with the current economic crisis and many of which refer to the “Great Depression” of the 1930s as an aftermath of the stock market crash in 1929. Most mainstream media give room to opinionated articles and columns that, while likening some of the causes of today’s crisis to that of 1929 onwards, most maintain the view that today is different because not only are all world currencies off the gold standard but also has economic science made great progress in analysing previous “mistakes” and providing sure-fire remedies and recipes for central banks and public policy. Read more…

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