News and Views

November 22, 2017

How to Beam Factories to Mars

By: Robert P. MurphyIn a recent blog post, Paul Krugman tried to illustrate a point about the GOP tax cut plan by imagining interplanetary trade with Martians. (At least he's now entertaining voluntary transactions, rather than an alien invasion.) Yet in his zeal to downplay the potential benefits to workers from a corporate tax cut, Krugman ends up shortchanging the versatility of markets. As a teaching exercise, I'll walk through the full implications of Krugman's story about Martians, to show the elegance of capitalism.Krugman's Martian ScenarioThe context for Krugman's fanciful thought experiment is the GOP plan to cut the corporate moreContinue Reading
We were recently asked to comment on Harry Dent's predictions for the gold market and we thought that our reply might benefit other gold investors as well. To be precise, we were asked about Harry Dent's 30-year cycle that supposedly peaked in 2011, and we supposedly could expect gold to peak again somewhere between 2038 and 2040 (you can watch the interview here). The indirect implication is that gold is not likely to soar sooner and that it's likely to decline for a relatively long time. moreContinue Reading
The latest Durable Goods report was a real turkey and it has knocked the stuffing out of the USDJPY this morning. Can this be used to yam Comex gold and Comex silver higher or is this all simply pie in the sky? read more moreContinue Reading
Another history lesson last evening from Batchelor and Cohen as they compare the current geopolitical climate to The Cold War of the 20th century. read more moreContinue Reading
Early U.S. Mint sales figures are now available for quarters commemorating Indian's George Rogers Clark National Historical Park. Released last week on Monday, Nov. 13, the George Rogers Clark... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] moreContinue Reading
GOLD PRICES recovered two-thirds of this week's earlier 1.3% drop against the Dollar on Wednesday, trading up to $1286 per ounce as Asian demand edged premiums in China and India higher, and world stock markets rose yet again. Government bond prices sat tight, keeping 10-year US Treasury yields unchanged at 2.36%, in the middle of the last month's range. Crypto-currency Bitcoin slipped 2.0% from Tuesday's new all-time record high at $834, while silver recovered above $17 per ounce. Gold priced in Sterling meantime halved its earlier loss for the week, touching £972 per ounce as the Pound fell while UK moreContinue Reading
There is a new trend by individuals in the alternative media community who are now selling out of precious metals and buying into Bitcoin and cryptocurrencies. While this may seem like a good idea, especially when Bitcoin and the cryptocurrencies reach new all-time highs, it is likely a big mistake. moreContinue Reading
Cryptocurrencies have surely been the best-performing asset class of 2017. The crown jewel of the crypto world Bitcoin has run up over 604% year to date. But that pales in comparison to Ethereum's 3,562% gain this year. Naturally, these sorts of monstrous returns in such a short period of time spark heated debate. In fact, many financial pundits and crypto advocates have scrambled to argue whether Bitcoin is a bubble or not. moreContinue Reading
Hard as it is to believe, VXX took a crucial step Tuesday toward a longstanding target at 26.32 that until recently had seemed as remote and inaccessible as a seashell lying at the bottom of the Marianas Trench. The relentless downtrend has been driven by an equally relentless bull market in stocks. The fact that the broad averages have not corrected significantly in years has sucked the marrow from VXX, causing the volatility trading-vehicle to implode over months and years, like a collapsing dwarf star. moreContinue Reading
By: Shawn RitenourHistorically, Thanksgiving has been a feast day during which Americans are called upon to thank the Lord for the many blessings he has bestowed upon us. Richard J. Maybury and Gary Galles both explain the economic lessons to glean from the experience of the Pilgrims and both note that the primary reason for God's blessing them with relative prosperity after years of famine and hunger was a shift away from socialism and toward private property. In their essays, both authors draw upon William Bradford's History of Plymouth Plantation to get the story straight from the source.One misconception that moreContinue Reading
By: Ariel LightermanIn 2007 Apple Inc made a move that changed the whole High-Tech world when it launched the first iPhone. The iPhone easily dethroned Nokia, and became the first smartphone that appealed to technophiles, businessmen, and everyday consumers.Apple generated exceedingly high profits from the iPhone's success. According to iSuppli, Apple made a $326 profit for every unit of the 2nd generation iPhone sold (excluding development and capital costs). Attracted by these profits, many companies had tried to find the formula for a mobile phone that will cut into Apple's market share. Palm and Nokia failed miserably, while RIM's Blackberry moreContinue Reading
It will be a technical trade today and till Monday. Moves will be big and two way. Investors will not be able to sleep on their investments. It should be a day trader's paradise till Monday. Copper, industrial metals and crude oil are looking bullish at the moment. Gold and silver are in anything can happen zone. Short term hot money is still into bitcoin and crypto currencies. moreContinue Reading