SEARCH
To anyone paying attention, reality is now painfully obvious. These bankrupt, insolvent governments have just about run out of fingers to plug the dikes. And history shows that, once this happens, governments fall back on a very limited playbook: 1. Direct confiscation As Cyprus showed us, bankrupt governments are quite happy to plunder
[Editor’s note: Tim Price, frequent Sovereign Man contributor and Director of Investment at PFP Wealth Management in the UK, is filling in for Simon today from London, England.] Like Lehman Brothers before it, Cyprus may well come to be seen not so much as the cause of further crisis but as yet another
Reporting from Santiago, Chile Sometimes I wake up and I’m just astounded at how quickly things are unraveling. Just look at a few big picture points: The Russians are now wagging their fingers at Europe, comparing the EU to the Soviet Union for trying to plunder Cypriot bank accounts. This on the heels
Reporting from Santiago, Chile In 1729, that Jonathan Swift (of Gulliver’s Travels fame) penned a famous satirical essay from England entitled “A Modest Proposal.” It’s still famous to this day as mandatory reading in many a high school literature class. As you may recall, Swift addresses the problem of the ultra-depressed Irish economy
[Editor’s note: Tim Price, Director of Investment at PFP Wealth Management and frequent Sovereign Man contributor is filling in from London, England while Simon is touring agricultural property today.] If there was ever a policy manual on how to deal with recession, the Fed and ECB’s copies have fallen out of the ugly
Reporting from Sovereign Valley Farm, Chile As you no doubt have heard by now, the government of Cyprus announced Saturday morning (when the banks were closed) that they would impose a ‘levy’ on bank deposits. Originally they announced levies of 9.9% for accounts above 100,000 euros, and 6.7% for accounts below 100,000 euros.
March 15, 2013 Santiago, Chile Earlier in the week, I wrote to you about an Argentine car rental agency that had started accepting Bitcoins as a means to bypass local capital controls. We received a lot of questions about the article, the most common of which was “What in the world is a
Reporting from Santiago, Chile Five-year plans in the Land of the Free? Apparently it’s not that far off from reality. Yesterday Senator Tom Harkin introduced S. 544, “a bill to require the President to develop a comprehensive national manufacturing strategy.” In effect, Senator Harkin wants the President to centrally plan the economy. Never
Reporting from Santiago, Chile There is no such thing as a ‘good’ fiat currency. Any model in which a tiny banking elite wields dictatorial control over a nation’s unbacked paper money supply is deeply flawed. The concept itself is dangerous, and comparing fiat currencies is like debating which is the ‘least harmful’ poison.
Reporting from Sovereign Valley Farm, Chile It’s a pretty sad state of affairs in the Land of the Free when they have to pass a law making it illegal for the government to assassinate its own citizens. Yet that’s exactly what’s happening. Late last week, US Senator Ted Cruz introduced Senate bill S.505,
Reporting from Santiago, Chile The Dow Jones Industrial Average, one of the key benchmarks of the US stock market, has soundly surpassed its all-time high. And most of the investing world is toasting their collective success and celebrating the recovery. It’s a funny thing, really. Most investors only think in terms of ‘nominal’
Reporting from Sovereign Valley Farm, Chile Throughout history, bankrupt governments in decline almost ALWAYS fall back on a time-tested playbook. This includes imposing controls on EVERYTHING– wage and price controls, trade controls, capital controls, border controls, people controls. Everything. And this idea goes back to the dawn of human civilization. The Third Dynasty
March 1, 2013 Sovereign Valley Farm, Chile For the last few weeks, I’ve had a steady stream of visitors make the trek down to Chile to escape the Northern Hemisphere winter and get a little taste of freedom. Chile is a place that will soon be the easiest place in the world to
Reporting from Santiago, Chile I really hate to beat a dead horse, but I wouldn’t be doing my job for you if I didn’t point out some of the most intellectually dishonest, self-aggrandizing Bernanke-speak to come out of the Fed Chairman’s testimony yesterday: “[The Federal Reserve has] 25 years of success in keeping
Reporting from Santiago, Chile “There is no bar to this nation’s holding one of its own citizens as an enemy combatant.” — US Senator Carl Levin My dictionary defines the word “sociopath” as “a person with a personality disorder manifesting itself in extreme antisocial attitudes and behavior and a lack of conscience. I
