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Tag Archives: Central Bank

A Wealth Tax Consumes Capital, Report 6 Oct

It seems one cannot make a name for one’s self on the Left, unless one has a proposal to tax wealth. Academics like Tomas Piketty have proposed it. And now the Democratic candidates for president in the US propose it too, while Jeremy Corbyn proposes it in the UK. Venezuela finally added a wealth tax in July. A Wealth Tax So how does a wealth tax work? The politicians quibble among themselves, as if the little implementation details that differ between them are important. But they share the...

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China Buys More Gold; Reserves Up Nearly 100 Tons on the Year

China added another 5.91 tons of gold to its reserves in August, bringing its total official gold purchases on the year to almost 100 tons, according to data released by the People’s Bank of China over the weekend.It was the ninth straight month of gold purchases for China as it continues efforts to diversify reserves away from the US dollar.An economist at National Australia Bank told he expected both Russia and China to continue to buy gold, saying trade war restrictions, in the case of...

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Central Bank Gold-Buying Continued Unabated in June

Central banks continued to buy gold in June according to the latest data released by the World Gold Council.Globally, central banks added a net 126.5 tons of gold to their reserves last month, led by the announcement of a 94.9 increase in Polish gold reserves. That brings total reported central bank gold purchases on the year to approximately 378 net tons.The World Gold Council bases its data on information submitted to the International Monetary Fund.We reported on Poland’s big increase...

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Poland Gobbles Up Gold, Plans to Bring It Home

Poland has added 100 tons of gold to its reserves through the first half of this year and plans to move at least half of its hoard from England to National Bank of Poland vaults in Warsaw.We’ve reported extensively on gold purchases by central banks, particularly China and Russia as those countries seek to diversify reserves and decrease their exposure to the US dollar. Just this week, China announced that it added another 10.3 tons of gold to its reserves in June. While many of the...

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China Adds to Gold Hoard for the Seventh Straight Month

For the seventh straight month, China added a significant amount of gold to its official reserves.The People’s Bank of China’s gold hoard grew another 10.3 tons in June, according to information released by the bank. Over the last seven months, the Chinese have increased their gold reserves by just over 84 tons.The latest purchases raise China’s official reserves to 1935.56 tons.Analysts say China’s gold-buying spree is part of the government’s “determined diversification” away from the US...

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Central Bank Gold-Buying Spree Continues

Central banks bought more gold in May according to the most recent data released by the World Gold Council.Globally, central banks purchased a net 35.8 tons of gold in May. Year-to-date, reported central bank net purchases of the yellow metal total 247.3 tons. That represents a 73% increase over the same period in 2018. April’s central bank net gold purchases were revised up from 43 to 49 tons.The World Gold Council bases its data on information submitted to the International Monetary...

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GDP Begets More GDP (Positive Feedback), Report 30 June

Last week, we discussed the fundamental flaw in GDP. GDP is a perfect tool for central planning tools. But for measuring the economy, not so much. This is because it looks only at cash revenues. It does not look at the balance sheet. It does not take into account capital consumption or debt accumulation. Any Keynesian fool can add to GDP by borrowing to spend. But that is not economic growth. Borrowing to Consume Today, let’s look at another problem with GDP. To understand it, let’s walk...

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More Gold For China

China added to its official gold reserves for the sixth straight month in May as it continues efforts to minimize exposure to the dollar.The People’s Bank of China increased its gold reserves by another 15.86 tons last month, according to data released by the bank on Monday. That raises the official Chinese gold reserves to 61.61 million ounces (1925.26 tons). Since the Chinese central bank started adding gold to its official reserves again last December, it has accumulated more than 73...

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China Adds Gold to Reserves for Fifth Straight Month, Ups Pace of Buying

China added gold to its reserves for the fifth straight month in April and is buying gold at an accelerating pace.According to the latest numbers released by the People’s Bank of China, the central bank added 14.9 tons of gold to its hoard in April. That raises total official Chinese gold reserves to 1909.4 tons or 61.1 million ounces.China has been adding gold to its reserves over the last several months as it continues efforts to minimize its exposure to the US dollar.April’s addition of...

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The Fed Is Chasing Unicorns

Last November, Fed Chair Jerome Powell said interest rates were “just below the broad range of estimates of the level that would be neutral for the economy.” This was the excuse for the central bank’s monetary policy 180 and set the stage for the “Powell Pause.”Central bankers are perpetually on a quest to find the elusive neutral interest rate, but in fact, it’s an impossible goal, as economist Frank Shostak explained in an article published on the .Basically, the Fed is chasing...

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