Author: Dickson Buchanan

Are Government Bonds Really ‘Safe’?

Posted on by Dickson Buchanan

One of the striking ironies of our modern economy is that government bonds are considered safe-haven investments, while gold is a “barbarous relic” to be avoided at all costs. Since the 2008 financial collapse, the bond market has been on a tear, thanks to the Federal Reserve’s endless interest rate suppression. This has only served […]

 

Argentina’s Default: A Devastating Lesson in Unfunded Government Liabilities

Posted on by Dickson Buchanan

Last week, on July 30, the Republic of Argentina was declared to be in default for the third time in 30 years. Let’s put that into perspective. If you were a bank officer who offered a 30-year mortgage to the Government of Argentina in the early ’90s you would have spent nearly the entire life […]

 

The Euro Goes Negative

Posted on by Dickson Buchanan

The European Central Bank’s (ECB) decision to charge a negative interest on overnight deposits is not going to lead to a higher targeted inflation rate, despite ECB President Mario Draghi’s insistence that it will. Like all cases of central planning, this decision will have unintended and costly consequences – some of which are already starting […]

 

Futures Markets Signal Gold Ready To Erupt

Posted on by Dickson Buchanan

With gold recouping some losses in its most recent trading sessions, many are asking whether or not the bottom has finally formed for the yellow metal. Most of these gains have been simply chalked up to short-covering and dovish remarks by Bernanke during the recent Federal Open Market Committee meetings; however, there are some key […]