Pause for Thanksgiving

Nov 25, 2022·Alasdair Macleod The Thanksgiving holiday in America ensured that trade in precious metals was subdued this week. Nevertheless, gold and silver prices held their ground. In European morning trade today, gold was at $1753, up $3 from last Friday’s close. And silver was at $21.35, up 40 cents. […]

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Legal definitions of money and credit

At these times of growing confusion over the future of currencies’ purchasing power, it is time to remove all doubt in the definitions of the differences between money, currency, and credit. This article traces the history and legal background to these relationships. Despite the failure of the Bretton Woods agreement […]

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The Great Unwind II

With price inflation rising out of control and interest rates rising strongly, the trading environment for commercial banks has fundamentally changed. With bad debts looming and bond prices in entrenched downtrends, procrastination is now the enemy of bankers. We are at the beginning of The Great Unwind, and this article […]

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Watching the paint dry

Oct 28, 2022·Alasdair Macleod Gold and silver consolidated the small gains of the previous week in subdued paper trading. In European this morning, gold was at $1649, down $9 from last Friday’s close, and silver at $19.22 off 16 cents. Broader financial markets also reflected consolidation. The dollar’s TWI weakened, […]

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Free markets’ last stand

The British government’s desperate dash towards free markets has failed, badly bungled. The establishment in Whitehall and Westminster is back and realigned with the international government consensus. The socialist wealth redistributors, the interventionists, and the anti-Brexit Remainers now formulate government policy. In Britain, free markets are dead.  Citizens of other […]

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Banking crisis — the Great Unwind

There is a growing feeling in markets that a financial crisis of some sort is now on the cards. Credit Suisse’s very public struggles to refinance itself is proving to be a wake-up call for markets, alerting investors to the parlous state of global banking. This article identifies the principal […]

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Imploding credit — the consequences

There is a growing realisation that the world faces a combination of persistent inflation of prices and a recession at the same time. The factors driving both are visibly intensifying. Those of us versed in the cycle of bank credit are aware that it is the contraction of bank balance […]

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Kwarteng – a job half done

Following the new Kwarteng/Truss economic policies revealed in last week’s mini budget, the widespread condemnation is a reflex Keynesian response from a world which has become hostage to erroneous economic and monetary groupthink in its major institutions. Kwarteng has jogged the global statist establishment out of its complacent drift into […]

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Inflation is turning hyper

Sep 15, 2022·Alasdair Macleod Money supply took off during covid lockdowns. It is now about to take off again to pay everyone’s energy bills. But that is not all. Demands for currency and credit to be conjured out of thin air to pay for everything will be coming thick and […]

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An Asian Bretton Woods?

The financial war between Russia with China’s tacit backing on one side, and America and her NATO allies on the other has escalated rapidly. It appears that President Putin was thinking several steps ahead when he launched Russia’s attack on Ukraine. We have seen sanctions fail. We have seen Russia […]

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Sell-off: the final stages?

Sep 2, 2022·Alasdair Macleod Gold and silver prices fell further this week as traders assessed increasing evidence that central bank interest rate policy is likely to drive major economies into deepening recession, potentially undermining commodity prices and those of gold and silver. In European trade this morning, gold traded at […]

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Geopolitics: the world is splitting into two

Aug 18, 2022·Alasdair Macleod While we are being distracted by Ukraine, President Putin has advanced his geopolitical goals materially. Aided and abetted by President Xi, Putin is taking the Asian continent into his control. That mission is well on its way to being achieved. He now awaits the winter months […]

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Alasdair Macleod: Bank credit — friend or foe?

Advocates of sound money place much of the blame for inflation on bank credit. Do away with the creation of bank credit, they say, and the destructive cycle of boom and bust will be cured. But is this solution practical, and is it the real inflation problem? It may be […]

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Gold and the upcoming recession

We are now seeing the initial stages of a currency, credit, and banking crisis develop. Driving it are an inflation of prices, contraction of bank credit and a pathological fear of recession. One can imagine that the major central banks almost wish a mild recession upon us so that they […]

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The collapsing euro and its implications

The euro system and its currency are descending into crisis. Comprised of the ECB and the National Central Banks, the system is over its head in balance sheet debt, and it is far from clear how that can be resolved. Normally, a central bank is easy to recapitalise. But in […]

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Sharp sell-off for gold and silver

Jul 8, 2022·Alasdair Macleod In a febrile atmosphere, gold and silver futures continued to slide priced in dollars this week. Gold was down $72 from last Friday’s close at $1738 in European trade this morning, and silver down 72 cents at $19.12. Volumes in the Comex gold contract were high, […]

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Inflation, recession, and new currencies

Central bankers are trying to steer markets away from higher interest rates, citing growing evidence of the harm they are doing to economic growth. Quantitative tightening is dead on arrival. Predictably — because it is a repetitive cycle — bank credit is beginning to contract. But contracting bank credit is […]

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Russia is winning the financial war

Sanctions have backfired on those described by Vladimir Putin as the unfriendly nations. It is setting in train a series of events likely to undermine the whole Western financial system, as prices rise driving interest rates higher, and economic activity shrinks. These developments alone are leading to contracting bank credit, […]

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A perfect storm in banking is brewing

Now that interest rates are rising with much further to go, the global banking system faces a crisis on a scale like no other in history. Central banks loaded with financial securities acquired through QE face growing losses, and their balance sheet liabilities are now significantly greater than their assets […]

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Protection from a currency collapse

While markets seem becalmed, financial conditions are rapidly deteriorating. Last week Jamie Dimon of JPMorgan Chase gave the clearest of signals that bank credit is beginning to contract. Russia has consolidated its rouble, which has now become the strongest currency by far. The Fed announced the previous week that its […]

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