What is the difference between the financial crisis of 2008 and COVID-19 pandemic of 2020? In 2008, many corporations and investment banks went bust. The ensued financial seizure has wrecked havoc globally. In 2008, the US Federal Reserve allowed some banks to go bankrupt, like Lehman Brothers, and saved others to seize up the system. […]
In Aug 1971, President Nixon ended the dollar convertibility to gold announcing the collapse of the gold standard which was created after WW2. Two years later, petrodollar system came into existence in 1973 to maintain the global demand for U.S. dollars as all oil sales will be transacted in US dollar. The United States dollar […]
Adam Smith, the father of capitalist theory and modern economics, proposed in his book “The Wealth of Nations” in 1776 a different capitalism that could work for the common good if the market was left to regulate itself without government interference. Since its inception, capitalism has never worked as Smith envisioned. It has been just […]
Romans kept the amounts of gold and silver in the minted coins unchanged, they would not have been able to increase spending and wage more wars.
Close the planet for three months and you get a massive global economic downturn. You should not be a Nobel laureate in economics to understand this.
A lot of discussions in the news about the potential return to the gold standard after the collapse of the dollar or the petro-dollar standard. The fact of the matter is that central banks love booms and busts. Gold prevents them from booming and busting the markets. Gold cannot be printed from thin air. It’s […]
The events that are unfolding day by day after the outbreak of The COVID -19 have signaled to us the new economic perspective, system or order that is going to prevail and dominate in the future.
I do not think that I would add up much to the precious conversation about the importance of gold in good and bad times. However, I strongly believe that the power of questions raises awareness which is always needed. Why humans throughout history never swayed from gold? Why do all the central banks hoard and preserve gold? Why do all investors diversify […]
Naive are those who think that the world would experience something similar to the great depression in 1929. It is going to be worse. In 1929, the planet earth did not shut down like in 2020.
Following WW2, a bunch of international bodies and vehicles emerge to recalibrate the world. The United Nations, IMF, the World Bank, Security Council, WHO and dollar as the world reserve currency. What would emerge after corona? I doubt peace and harmony would prevail. The evidence is the major economic crises post WW2. OPEC oil price shock (1973). Asian financial […]