Right now, everyone is on the same side of the trade: long equities. This is dangerous…
Did the price of paper gold (futures) divorce from the price of physical gold?
Is Bitcoin money? In brief, no it’s an irredeemable currency.
For the first time in this crisis, the bailout does not cover depositors in full. Losses are to be suffered by not only shareholders and bondholders, but even by depositors. We expect future bailouts to incorporate this feature.
The world is rushing towards mass insolvency. If we don’t change course, we face certain devastation.
The curious thing is that the price fell while open interest in futures rose, which is not typical of how the market has actually been behaving in recent years.
The unadulterated gold standard is a free market in money, credit, interest, and discount based on the right of the people to hold and use gold coins, and which includes Real Bills and bonds.
The world needs the unadulterated gold standard.
Free markets are not to be blamed for the Great Recession. On the contrary, its origins rest upon the deep government and central bank intervention in the economy.
Duration mismatch is bad. It is fraud, it is unfair to depositors (much less shareholders) and it is certain to collapse sooner or later.
In the first lecture, I described the problem we now face. In the second, I propose a solution (gold bonds).
Conferencia del profesor Jesús Huerta de Soto en la Fundación Rafael del Pino (19/04/2012).