The Chinese account for over a third of total gold demand. We know therefore that any development in China — either positive or negative — has a rippling effect on gold, as well as other commodities that were bid up to new record heights during the Chinese credit bubble.... »
A Typical Case of an Austrian Business Cycle in China and Gold
May 29 2015
Olav Dirkmaat
How (Central) Banking Really Works (Part II)
May 26 2015
In the previous part of this mini-series, we discussed how our bank balance isn’t money, but rather a form of credit (a loan to the bank that is redeemable on demand). In order to understand what money really is, we looked at the origin of money and the influence of central banking on money.... »
Olav Dirkmaat
What the Worlds Most Powerful Hedge Fund Manager Thinks about Gold
May 19 2015
Ray Dalio of Bridgewater Associates manages 170 billion dollars, and is called the world’s 'most profitable' fund manager. He started small; he was just 12 years old when he earned $300 as a caddy in his free time. He then bought his first stock: Northeast Airlines.... »
Olav Dirkmaat
How (Central) Banking Really Works (I)
May 11 2015
Money and banking are increasingly becoming the subject of intense public debate. A recent example is the Dutch citizens’ initiative 'Ons geld' (Our Money); collecting more than 100,000 signatures in support of a proposal to put the power to create "money" into the hands of government. The public debate surrounding this proposal is dominated by people who confuse money and... »
Olav Dirkmaat
