Here’s the best way to put it: Quantitative Easing (QE) is like saying that simply feeding a guy will make him exercise more. It doesn’t. It just makes him more fat (inflation). On the other hand, someone who is working out and growing muscle (ie, a metaphor for a growing economy) does need to be… Continue reading The Biggest Problem the World Faces: No Stable Unit of Account
I really fell in love with Pandora a year or two ago. I think the market cap was treading around 2 billion. I told myself that if the Market Cap hit 1.5 billion, I’d make an investment. Well, I haven’t logged it, but it seems like it must have bounced off 1.5 billion about 7… Continue reading Considering an Investment in Pandora ($P) in Light of Spotify, Rdio, and Songza
Update 7/17/12 – I saw Wilbur Ross, the famed Billionaire investor who made a lot investing in Coal and getting out with perfect timing, I’m assuming when the Nat Gas Revolution kicked in, he mentioned EXCO Resources Inc (XCO) as his main Natural Gas play. Of course, he is a director. But Richard Grasso, a member… Continue reading The Natural Gas Revolution and How to Play It.
Vis a vi Monetary Policy: The major mistake of the “Monetarists” like Krugman is that they believe Monetary stimulation stimulates growth. It doesn’t. All that it stimulates is stagflation. I’m a Paulista, but the one thing I would disagree with him is that there is a way to know how much liquidity the economy… Continue reading The Major Mistake of Both Ron Paul and Paul Krugman
All you need to do is change the Fed’s mandate from targeting interest rates to targeting Gold. The Fed can easily keep the price of Gold within a tight trading range by increasing liquidity when the Price of gold dips below the prescribed range (indicating deflationary pressures) and conversely selling bonds to mop up excess… Continue reading How to Return to a Gold Standard Without Disrupting Liquidity Needs
Maybe the only thing I disagree with Ron Paul about, is that there is a time when the Fed should create liquidity, and that time is when, like in the 90’s due to the Internet and Communications revolution, there is a period of incredible growth. A growing economy needs liquidity like a growing body needs… Continue reading There is a Time For the Fed to Create Liquidity