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hard money

To The Asian ‘Dollar’, And Then What?

By |2017-04-24T16:13:46-04:00April 24th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Bretton Woods system was intentionally set up to funnel monetary convertibility through official channels. The primary characteristic of any true gold standard is that any person who wishes can change paper claims into hard money. It was as much true in any one country as between those bound by the same legal framework (property). What might differ were the [...]

We Know How This Ends, Part 2

By |2016-01-18T17:25:55-05:00January 18th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Part 1 is HERE. In March 1969, while Buba was busy in the quicksand of its swaps and forward dollar interventions, Netherlands Bank (the Dutch central bank) had instructed commercial banks in Holland to pull back funds from the eurodollar market in order to bring up their liquidity positions which had dwindled dangerously during this increasing currency chaos.  At the [...]

We Know How This Ends

By |2016-01-18T17:31:15-05:00January 18th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The finance ministers and representatives of central banks from the world’s ten largest “capitalist” economies gathered in Bonn, West Germany on November 20, 1968. The global financial system was then enthralled by a third major currency crisis of the past year or so and there was great angst and disagreement as to what to do about it. While sterling had [...]

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