Archive for Monetary System

Slow Thaw in Lending


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The End of Wall Street

The start of a new Financial Order…?

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Unlimited Debt in Printing

“If any other country announced that its finance minister could print unlimited debt to do something similar, financial markets around the world would dump both the country’s debt and the country’s currency.”

“It may well be different because this is the United States of America.”

Sure, we’ve heard many time of people saying “It is different this time”. Back in 2000 everybody is saying that .com bubble will never burst because it is different. Look at where we at now?

Hank Paulson’s Financial Bubble:

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The Fall of Roman Empire

From the monetary point of view:

Somebody said that history repeats itself:


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China to Protect it’s 1.8 trillion from Dollar Crisis

New Bretton Wood agreements in the loom? What was Gold/Silver’s role in the Old agreement from 1949/1970s again?

Dollar was pegged to Gold at $35/oz at that time. But don’t forget, today there’s over $30000 Dollars out there, for each oz of Gold. Don’t even ask me about Silver:

Oh yes, here is this year’s Chinese best seller on economy, urging it’s people and government to convert 200 billions of it’s Foreign Reserve into Gold every year:

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Penalty of Death, for de-basing the coins

Coin Act of 1792, and maybe 2012:

Penalty of Death for de-basing the coins. Section 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of the fine gold or fine silver therein contained, or shall be of less weight or value than the same out to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who shall commit any or either of the said offenses, shall be deemed guilty of felony, and shall suffer death.

And a few fundamental about silver: (

1. The world is no longer using silver and gold as money, and thus the primary demand could not be lower.
2. The world started consuming silver in electronics after World War II, and has continued the pace of silver consumption of about 7 tenths of an ounce of silver per year, per person, in industrialized nations ever since, consuming perhaps over 25 billion ounces of silver.
3. With the rise of inflation beyond 20% per year, many people in the financial world are turning their attention once again to buying gold and silver.
4. With $14 trillion in M3, according to private sources, and with annual silver investment demand at barely $1 billion, and with 60-90% of the U.S. population concerned about inflation and the devaluation of the dollar, we are on the edge of a tidal wave of investment demand for silver.

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M3 Continued

FED has discontinued reporting of M3 since April 2006. Many websites have been trying to publish the continuation of M3 since then:

From what we see, M3 is growing at an alarming rate. The money supply is considered an important instrument for controlling inflation by economists who say that growth in money supply will only lead to inflation if money demand is stable (see Money Supply wiki page).

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