Last week, when I heard that the ECB led by Mario Draghi expanded its quantitative easing program even more, it reminded me of a fascinating incident that happened in 13th century Asia. The similarities between that period and contemporary monetary policy are striking. And there are plenty of valuable lessons to learn!
... »Draghi Does What Rinchindorji Gaikathu Has Done Before in 1291, but Without Much Success
March 14 2016
Edin Mujagić
The Exportation of Greek/Italian/French Economic Policies to the Netherlands
March 7 2016
The euro was supposed to become comparable to the Dutch guilder or the German mark; not like the Italian lire or the Greek drachma. In order to realize this goal, the common currency was built on two pillars: The European Central Bank (ECB) was designed to function as an independent central bank, modeled after the German Bundesbank. Furthermore, the Stability and Growth Pact imposed sound fiscal policies on all euro area countries. The latter was sorely needed given that, through the euro,... »
Edin Mujagić
Kondratiev Waves Are Nonsense
March 1 2016
Many investors point to Kondratiev waves (also called supercycles or long waves) as a reason to invest in gold. The best-known advocate of the Kondratiev cycle may very well be Jaap van Duijn, a former executive of the Dutch asset management firm Robeco. A Dutch newspaper, Volkskrant, cites him:... »
Olav Dirkmaat
ABN Amro Raises Its Price Target for Gold from $800/oz to 1.300$/oz
February 22 2016
On November 5th 2008, Queen Elizabeth visited the London School of Economics. Her wealth had just decreased by more than 25 million pounds. The financial markets were in fire and flame and Her Majesty wasn’t spared during the market’s massacre. The Queen’s response? She asked, aloud, "Why did nobody see this coming?"
... »Olav Dirkmaat
