The Dollar Archive

  • It’s interesting how many people think that forcing employers to pay more for unskilled labor is helpful to the economy. The argument goes something like this: Can you imagine living on $10 per hour? That’s nothing. I couldn’t even imagine living on $15 an hour. At least these poor guys can get a raise and survive more comfortably. What they...

    Minimum Wage Maximizes Unemployment of Poor

    It’s interesting how many people think that forcing employers to pay more for unskilled labor is helpful to the economy. The argument goes something like this: Can you imagine living on $10 per hour? That’s nothing. I couldn’t even imagine living on $15 an hour. At least these poor guys can get a raise and survive more comfortably. What they...

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  • A recent study reveals that more than those in the age group between 25 and 34 are staying home much longer. While this age group typically is chomping at the bit to leave home, some countries show that more than 50 percent of them are staying home. Spiegel reports, “In 2011, more that 50 percent of the 25- to 34-year-olds...

    Young Europeans Leave the Nest Later Due to Economic Hardship

    A recent study reveals that more than those in the age group between 25 and 34 are staying home much longer. While this age group typically is chomping at the bit to leave home, some countries show that more than 50 percent of them are staying home. Spiegel reports, “In 2011, more that 50 percent of the 25- to 34-year-olds...

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  • On the heels of today’s FOMC announcement metals took a bit of a dip. However, it wasn’t as bad as some would make it out to be. For instance, silver still isn’t down to yesterday’s low. Gold is off yesterday’s close by only $6. What’s our point? Mainly, to help readers adjust their mindset to ignore the sensationalism we see...

    News for FOMC Effect on Gold Mixed; or Confused

    On the heels of today’s FOMC announcement metals took a bit of a dip. However, it wasn’t as bad as some would make it out to be. For instance, silver still isn’t down to yesterday’s low. Gold is off yesterday’s close by only $6. What’s our point? Mainly, to help readers adjust their mindset to ignore the sensationalism we see...

    Continue Reading...

  • The World Gold Council released quarterly statistics for gold in six currencies. Gold’s high performance in dollars is not simply illustrative of gold’s rise in value, but also of the dollar’s decreasing value. The dollar fared worse than the other currency’s in relation to gold. The report shows the Rupee as the currency that retained the most strength, with gold...

    World Gold Council Q3 Report – Gold Up 11% in US$

    The World Gold Council released quarterly statistics for gold in six currencies. Gold’s high performance in dollars is not simply illustrative of gold’s rise in value, but also of the dollar’s decreasing value. The dollar fared worse than the other currency’s in relation to gold. The report shows the Rupee as the currency that retained the most strength, with gold...

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  • Investors should consider the dynamic of precious metals ownership in Vietnam. A recent report from Swiss banks, who represent the majority of gold imports for Vietnam, claims that over 500 tonnes of gold entered the country over the past 20 years. Lesson one – Own gold. It seems that Asian peoples are well versed in the reasons for owning gold....

    A Banking Lesson from Vietnam and Thomas Jefferson

    Investors should consider the dynamic of precious metals ownership in Vietnam. A recent report from Swiss banks, who represent the majority of gold imports for Vietnam, claims that over 500 tonnes of gold entered the country over the past 20 years. Lesson one – Own gold. It seems that Asian peoples are well versed in the reasons for owning gold....

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  • As we come to the close of our series on quantitative easing, it’s apparent that a conclusion is anything but clear. What some are calling QE3 is basically a repeat of the purchasing of mortgage backed securities that we saw in QE1 and 2. What future will calHowever, unlike previous rounds, this round has no time limit, no clearly set...

    QE-101: QE3, 4, 4ever, ∞, Eternity, Infinity

    As we come to the close of our series on quantitative easing, it’s apparent that a conclusion is anything but clear. What some are calling QE3 is basically a repeat of the purchasing of mortgage backed securities that we saw in QE1 and 2. What future will calHowever, unlike previous rounds, this round has no time limit, no clearly set...

    Continue Reading...

  • As we track the FED’s effort to control the economy we’ve focused on QE. There was actually a previous “Operation Twist” back in 1961, which was very similar to what we saw last year. The 1961 version, named after the popular dance of the time, extended the length of debt in an effort to take immediate pressure off the market...

    QE-101: Operation Twist

    As we track the FED’s effort to control the economy we’ve focused on QE. There was actually a previous “Operation Twist” back in 1961, which was very similar to what we saw last year. The 1961 version, named after the popular dance of the time, extended the length of debt in an effort to take immediate pressure off the market...

    Continue Reading...

  • Most analysts anticipated a rise in interest rates after QE1 ended. However, quite the opposite happened. In fact, interest rates dropped by almost 0.9 percent within the following five months. On the other hand, the economy was still not moving. The FED continued to reinvest any payments they received on the securities purchased, in order to keep the money supply...

    QE-101: QE2

    Most analysts anticipated a rise in interest rates after QE1 ended. However, quite the opposite happened. In fact, interest rates dropped by almost 0.9 percent within the following five months. On the other hand, the economy was still not moving. The FED continued to reinvest any payments they received on the securities purchased, in order to keep the money supply...

    Continue Reading...

  • As you are likely aware, the financial crisis that hit the United States (housing in particular) precipitated quantitative easing. As the magnitude of the crisis became more apparent, drastic actions were taken in an attempt to control the contagion. Fannie Mae and Freddie Mac were quickly seized by the U.S. Treasury who injected cash to save the crippled mortgage companies....

    QE-101: QE1

    As you are likely aware, the financial crisis that hit the United States (housing in particular) precipitated quantitative easing. As the magnitude of the crisis became more apparent, drastic actions were taken in an attempt to control the contagion. Fannie Mae and Freddie Mac were quickly seized by the U.S. Treasury who injected cash to save the crippled mortgage companies....

    Continue Reading...

  • Quantitative easing is nothing new. It’s been attempted many times and, in some cases, consistently over the past decade or more. And, to this point, it’s been nothing but an abysmal failure in every case. As Rita Mae Brown noted, “Insanity is repeating the same mistakes and expecting different results” (Sudden Death). Of course, many attribute that quote to Einstein....

    QE-101: Is History a Sufficient Teacher?

    Quantitative easing is nothing new. It’s been attempted many times and, in some cases, consistently over the past decade or more. And, to this point, it’s been nothing but an abysmal failure in every case. As Rita Mae Brown noted, “Insanity is repeating the same mistakes and expecting different results” (Sudden Death). Of course, many attribute that quote to Einstein....

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  • The fact is, as we’ve seen, QE isn’t restricted to bonds. It can focus on any aspect of the market, from houses to businesses to bonds to stocks. But the risk, regardless of what the FED does, is planted firmly on the shoulders of the taxpayers. Consider this observation from the Financial Times Lexicon regarding QE. Of course there are...

    QE-101: It’s All About the Banks

    The fact is, as we’ve seen, QE isn’t restricted to bonds. It can focus on any aspect of the market, from houses to businesses to bonds to stocks. But the risk, regardless of what the FED does, is planted firmly on the shoulders of the taxpayers. Consider this observation from the Financial Times Lexicon regarding QE. Of course there are...

    Continue Reading...