Dagong International Credit Rating, a new Chinese credit rating agency, purports to adhere to “fundamental principles of truthfulness, timeliness, and consistency.” It warns that “over-reliance on financing income and debt roll-over will ultimately lead to a strong reaction of bond market, thus when the borrowing costs and difficulties increase, the credit risks will burst dramatically.” [...]
The role of money in Roman credit crises can be carefully examined. The recurrence of credit panics on the surface seems incongruent with the discipline of hard money developed in the Roman Republic. But as a reserve, silver expanded geometrically, acting as a rudimentary version of today’s fiat backing, and its production was under complete [...]
We got back from South America on Friday…ready for a rest. So, we spent the weekend reading…and occasionally, thinking. What we’ve been thinking is that the dollar is dead meat in the long run. But in the short run, it might have enough life in it to bite investors on the derriere. The US stock [...]
