Tuesday, March 1, 2016

Most Popular Blog Articles in February

Every first day of each month we post links to the articles from the previous month that were the most popular with readers. So, if you missed any of these during February, you can catch up here.


Hugo Salinas Price - World to Solve Debt Problems by Revaluing Gold?

Hugo Salinas Price is a highly successful businessman from Mexico. You can think of him as kind of like a Warren Buffet of Mexico in terms of his wealth. He does see things differently though when it comes to the future of the global monetary system. 

In a new article by Hugo Salinas Price he goes on record as saying that eventually the overwhelming debt in the global system will be resolved by sharply revaluing gold much higher.

Last month we ran this article on the blog which quoted former Bank for International Settlements (BIS) Chief Economist William White as saying that the global debt problem is so severe that "it will become obvious in the next recession that many of these debts will never be serviced or repaid." If that isn't enough coming from a former BIS Chief Economist, he added "this will be uncomfortable for a lot of people who think they own assets that are worth something." 

This weekend we did a review of an in depth interview conducted with former Bank for International Settlements Chief Economist William White. The interview was so in depth it was covered in a two part article on the Cobden Centre web site. The interview is filled with important statements by William White. When we get this kind of insight from someone with years experience inside the system, we need to take note of it. 

In this article we will look at just a couple of the interesting answers provided by Mr. White in this interview that shows you that there are real concerns inside the system about the easy money policies they have been using. This is a fascinating peek inside the system that we need to be aware of. 

We have documented the many warnings issued by both the IMF and the BIS over the past couple of years here on the blog. Here is the latest warning from BIS General Manager Jaime Caruana in a speech he gave at the London School of Economics and Political Science. 

A big thank you to a blog reader who tipped me about this item related to well known hedge fund operator Kyle Bass. Mr. Bass is very concerned about stability in China including the status of many banks in China.


Note to Readers- Coming Friday March 4th

Friday March 4th we will have an article covering a recent discussion (captured on video) on the potential for the SDR to be used as the new global reserve currency for the world. (article is now posted here) The discussion included both a current IMF official who works with SDRs right now and the former head of the SDR Division at the IMF (Dr. Warren Coats) who we have contract with by email. Dr. Coats even provided a great quote for our article that readers here will want to see.

In the discussion it is clear that these officials do not see an imminent crisis coming at this time even though they do point out that the conditions for one in the future do exist. 

Please watch for it and let others know about it as you will not get this kind of direct information from official experts like this very often. It will answer many questions I see from readers and in other discussion forums all over the world about the potential for the SDR as a replacement global reserve currency for the US dollar. It directly addresses the two big questions we follow here on this blog:

1) Will we get another major financial crisis worse than 2008?

2) If we do, will the SDR used at the IMF be used in a new way to address the crisis?

Jim Rickards work on this is invaluable (they mention his book in the video) and now we have direct information on both these important questions from both a current and former IMF official on what we can reasonably expect.

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