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Claudio Grass

Claudio Grass

Claudio Grass is a passionate advocate of free-market thinking and libertarian philosophy. Following the teachings of the Austrian School of Economics he is convinced that sound money and human freedom are inextricably linked to each other. He is one of the founders of GoldAndLiberty.com.

Articles by Claudio Grass

Investing in crypto the sound way!

3 days ago

Interview with Christian Zulliger
I have long been fascinated by the far-reaching consequences and the great potential of the wave of new technologies and ideas that emerged with the crypto revolution. While most of us first came into contact with these concepts in 2017, this tectonic shift that is only just beginning has been in the making for nearly a decade. Now, we begin to see the basic ideas and tools take shape and give rise to endless exciting possibilities that can affect multiple sectors. The distributed ledger technology, the concept of increased efficiency by cutting out unnecessary middlemen, an emphasis on privacy and individual responsibility, as well as the overarching principle of decentralization and peer-to-peer transactions, have all played a

Read More »

Investing in crypto the sound way!

5 days ago

Interview with Christian Zulliger

I have long been fascinated by the far-reaching consequences and the great potential of the wave of new technologies and ideas that emerged with the crypto revolution. While most of us first came into contact with these concepts in 2017, this tectonic shift that is only just beginning has been in the making for nearly a decade. Now, we begin to see the basic ideas and tools take shape and give rise to endless exciting possibilities that can affect multiple sectors. The distributed ledger technology, the concept of increased efficiency by cutting out unnecessary middlemen, an emphasis on privacy and individual responsibility, as well as the overarching principle of decentralization and peer-to-peer transactions, have all played a crucial part in

Read More »

“The seeds have been sown for unrest in 2020 in Europe”

7 days ago

Interview with Godfrey Bloom

The latest election in the UK promised to bring about a long-overdue end to the Brexit story. Getting out the EU has been a long and winding road for Britain and the multiple delays and setbacks have both infuriated and disappointed the millions of citizens who voted to Leave, by now three times already. Ever since the referendum, all (at least, foreign) eyes have been fixed on the latest Brexit updates, however, there have been other important shifts and changes in the nation, both economic and socio-political, that could have a more meaningful impact going forward.   

This is why I reached out to Godfrey Bloom, to get his perspective on these developments and to better understand Britain’s present and future challenges. I find that his refreshingly

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The owl has landed: Lagarde’s new vision for the ECB

11 days ago

Christine Lagarde. Photo Credit: European Parliament
On December 12, Christine Lagarde introduced her goals and vision in her first rate-setting meeting as the new President of the ECB. On the actual policy front, there were no surprises. She remained committed to the path set by her predecessor, Mario Draghi, and kept the current monetary stimulus unchanged. The central bank kept its deposit rate at the present record-low -0.5%, and pledged to continue its €20 billion bond purchases every month, to the chagrin of its many critics who have repeatedly and loudly expressed serious concerns over the policy’s impact on the banking sector, on the insurance industry and on everyday savers and pensioners. This was all widely expected, as the new President had so far only

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The owl has landed: Lagarde’s new vision for the ECB

12 days ago

On December 12, Christine Lagarde introduced her goals and vision in her first rate-setting meeting as the new President of the ECB. On the actual policy front, there were no surprises. She remained committed to the path set by her predecessor, Mario Draghi, and kept the current monetary stimulus unchanged. The central bank kept its deposit rate at the present record-low -0.5%, and pledged to continue its €20 billion bond purchases every month, to the chagrin of its many critics who have repeatedly and loudly expressed serious concerns over the policy’s impact on the banking sector, on the insurance industry and on everyday savers and pensioners. This was all widely expected, as the new President had so far only praised Draghi’s leadership and his “whatever it takes” campaign to save

Read More »

While everyone talks, Bitcoin just keeps running – Part II

21 days ago

Claudio Grass (CG): During the 2017 hype, when most people became aware of Bitcoin, it was mainly sold as the payment vehicle of the future, as a great investment for the “little guy” who has no access to equity markets and even as a store of value that would replace precious metals. In your opinion, what are the main misconceptions that the average “crypto layman” may still hold today? 

Konrad S. Graf (KG): Some critics argue that Bitcoin as a whole can just be copied to make other coins and that this represents the potential for infinite inflation. It is certainly the case that the software and its chain can be copied and varied. There have already been thousands of knockoffs and variants, as well as quite distinct projects grouped under the increasingly vague category of

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While everyone talks, Bitcoin just keeps running – Part I

27 days ago

I have long been fascinated by both the progress made so far, and by and the promise of this new era of decentralized money that is only just beginning. Although I lack the technical expertise to fully understand the finer points of the code behind the different cryptocurrencies or to assess the nuances of the inner workings of Bitcoin, I do understand money, its history, its multifaceted functions, and the potential for abuse once a monetary monopoly arises. Therefore, I was inspired by the revolution that started with Bitcoin. The fact that its popularization put the idea in people’s minds that there can be better options than fiat currencies gave me hope that we might see the end of total state dominance over money in our lifetimes. It also convinced me that Bitcoin, as well as

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How Today’s Central Bankers Threaten Civilization

27 days ago

When I was asked to write an article about the impact of negative interest rates and negative yielding bonds, I thought it was a chance to look at the topic from a broader perspective. There have been lots of articles speculating about the possible implications and focusing on their impact in the short run, but it’s not very often that an analysis looks a bit further into the future, trying to connect money and its effect on society itself.
Qui Bono?
Let us begin with a basic question, that lies at the heart of this issue: Who profits from a loan that is guaranteed to pay back less than the amount borrowed? Obviously, it is the borrower and not the lender, which in our case is the government and those closely connected to it. Negative rates and negative-yielding

Read More »

Corporate Debt Time Bomb

December 21, 2019

While I have reportedly highlighted the many risks of the current monetary policy direction and the multiple distortions that it has created in the markets, in the economy, and even in society, one of the most pressing dangers of the unnaturally low rates and cheap money is the staggering accumulation of debt. Nowhere is this more obvious than in the ballooning corporate debt, especially in the US. It has been growing so rapidly and for so long, that many investors and analysts eventually got used to it, accepted it as a fact of life, and became desensitized to the immense risk it poses to the economy at large. Now, another crucial milestone has been reached and a red line has been crossed, that will hopefully force market participants to finally heed the many

Read More »

Corporate Debt Time Bomb

December 19, 2019

While I have reportedly highlighted the many risks of the current monetary policy direction and the multiple distortions that it has created in the markets, in the economy, and even in society, one of the most pressing dangers of the unnaturally low rates and cheap money is the staggering accumulation of debt. Nowhere is this more obvious than in the ballooning corporate debt, especially in the US. It has been growing so rapidly and for so long, that many investors and analysts eventually got used to it, accepted it as a fact of life, and became desensitized to the immense risk it poses to the economy at large. Now, another crucial milestone has been reached and a red line has been crossed, that will hopefully force market participants to finally heed the many calls for caution and

Read More »

The destruction of civilization – implications of extreme monetary interventions

December 11, 2019

When I was asked to write an article about the impact of negative interest rates and negative yielding bonds, I thought this is a chance to look at the topic from a broader perspective. There have been lots of articles speculating about the possible implications and focusing on their impact in the short run, but it’s not very often that an analysis looks a bit further into the future, trying to connect money and its effect on society itself.
Qui bono?
Let us begin with a basic question, that lies at the heart of this issue: Who profits from a loan that is guaranteed to pay back less than the amount borrowed? Obviously, it is the borrower and not the lender, which in our case is the government and those closely connected to it. Negative rates and negative

Read More »

The destruction of civilization – implications of extreme monetary interventions

December 10, 2019

When I was asked to write an article about the impact of negative interest rates and negative yielding bonds, I thought this is a chance to look at the topic from a broader perspective. There have been lots of articles speculating about the possible implications and focusing on their impact in the short run, but it’s not very often that an analysis looks a bit further into the future, trying to connect money and its effect on society itself. 

Qui bono?

Let us begin with a basic question, that lies at the heart of this issue: Who profits from a loan that is guaranteed to pay back less than the amount borrowed? Obviously, it is the borrower and not the lender, which in our case is the government and those closely connected to it. Negative rates and negative yielding bonds, by

Read More »

The ECB’s “mea culpa”

December 4, 2019

Economists, conservative investors and market observers have been issuing stern warnings for years regarding the severe impact of the current monetary policy direction.
The problems
In a recent statement, ECB Vice President Luis de Guindos warned of potential side effects and risks to the economy resulting directly from the central bank’s policies. He outlined how a decade of extremely aggressive monetary interventions have resulted in an erosion of financial stability and now pose a threat to the Eurozone’s economic outlook. While he defended the bank’s negative interest rate strategy as “supportive” of the overall economy, he did admit that, because of it, “we also note an increase in risk-taking which could, in the medium term, create financial-stability

Read More »

The ECB’s “mea culpa”

December 3, 2019

Economists, conservative investors and market observers have been issuing stern warnings for years regarding the severe impact of the current monetary policy direction.

The problems

In a recent statement, ECB Vice President Luis de Guindos warned of potential side effects and risks to the economy resulting directly from the central bank’s policies. He outlined how a decade of extremely aggressive monetary interventions have resulted in an erosion of financial stability and now pose a threat to the Eurozone’s economic outlook. While he defended the bank’s negative interest rate strategy as “supportive” of the overall economy, he did admit that, because of it, “we also note an increase in risk-taking which could, in the medium term, create financial-stability challenges”.

This

Read More »

The Evolution Of The Bank Run

November 26, 2019

There are numerous and wide-ranging reasons why someone may choose to invest in physical precious metals. A deep understanding of monetary history provides plenty of solid arguments, and so do the mounting geopolitical risks, the spiking probability of a recession and the long-term goal of many conservative investors to safeguard their financial self-determination. For me, while all of these reasons are important, there is also another argument that I find especially powerful and extremely relevant today. The vulnerability of the current banking system itself is a risk that is often overlooked or dismissed, as most mainstream investors, having short memories and a narrow attention span, tend to believe blindly in the banking sector’s ability to protect and

Read More »

“We don’t have to behead the king if we can just ignore him” – Claudio Grass

November 9, 2019

“Negative interest rates are unsustainable and once investors decide to stop paying for the privilege of holding government debt, a banking crisis could result, says James Grant.”
Returning SBTV guest, Claudio Grass, speaks with us about the unsustainable pensions, crumbling fiat currencies and a looming financial crisis in a world of insane central bank monetary policies.
Discussed in this interview:
01:31 A looming global recession ahead?
06:47 Money printing by central banks at its limits
08:18 Governments and central banks are out of control
11:14 Pensions are not sustainable especially with negative interest rates
15:46 No bright future for the dollar and euro
24:03 Lack of gold backing: Cause of economic woes
26:58 Digital world can offer freedom away from

Read More »

“We don’t have to behead the king if we can just ignore him” – Claudio Grass

November 8, 2019

“Negative interest rates are unsustainable and once investors decide to stop paying for the privilege of holding government debt, a banking crisis could result, says James Grant.”
Returning SBTV guest, Claudio Grass, speaks with us about the unsustainable pensions, crumbling fiat currencies and a looming financial crisis in a world of insane central bank monetary policies.
Discussed in this interview:
01:31 A looming global recession ahead?
06:47 Money printing by central banks at its limits
08:18 Governments and central banks are out of control
11:14 Pensions are not sustainable especially with negative interest rates
15:46 No bright future for the dollar and euro
24:03 Lack of gold backing: Cause of economic woes
26:58 Digital world can offer freedom away from centralization
28:50

Read More »

“We don’t have to behead the king if we can just ignore him” – Claudio Grass

November 8, 2019

“Negative interest rates are unsustainable and once investors decide to stop paying for the privilege of holding government debt, a banking crisis could result, says James Grant.”
Returning SBTV guest, Claudio Grass, speaks with us about the unsustainable pensions, crumbling fiat currencies and a looming financial crisis in a world of insane central bank monetary policies.
Discussed in this interview:
01:31 A looming global recession ahead?
06:47 Money printing by central banks at its limits
08:18 Governments and central banks are out of control
11:14 Pensions are not sustainable especially with negative interest rates
15:46 No bright future for the dollar and euro
24:03 Lack of gold backing: Cause of economic woes
26:58 Digital world can offer freedom away from centralization
28:50

Read More »

QE by any other name

November 6, 2019

“The essence of the interventionist policy is to take from one group to give to another. It is confiscation and distribution. “ – Ludwig von Mises, Human Action
In less than a year, we have witnessed an unprecedented monetary policy rollercoaster by the Federal Reserve, which began with a momentous U-turn in the central bank’s guidance in January, and has continued to escalate ever since. It is easy to forget that less than a year ago, all official statements and market expectations were aligned with sustained tightening, while repeated rate cuts were considered highly improbable, to say the least. Equity investors were almost coming to terms with the idea of policy normalization and the Fed was seen by conservative market observers and economists as one of the

Read More »

QE by any other name

November 6, 2019

“The essence of the interventionist policy is to take from one group to give to another. It is confiscation and distribution. “ – Ludwig von Mises, Human Action

In less than a year, we have witnessed an unprecedented monetary policy rollercoaster by the Federal Reserve, which began with a momentous U-turn in the central bank’s guidance in January, and has continued to escalate ever since. It is easy to forget that less than a year ago, all official statements and market expectations were aligned with sustained tightening, while repeated rate cuts were considered highly improbable, to say the least. Equity investors were almost coming to terms with the idea of policy normalization and the Fed was seen by conservative market observers and economists as one of the very few at least

Read More »

QE by any other name

November 6, 2019

“The essence of the interventionist policy is to take from one group to give to another. It is confiscation and distribution. “ – Ludwig von Mises, Human Action

In less than a year, we have witnessed an unprecedented monetary policy rollercoaster by the Federal Reserve, which began with a momentous U-turn in the central bank’s guidance in January, and has continued to escalate ever since. It is easy to forget that less than a year ago, all official statements and market expectations were aligned with sustained tightening, while repeated rate cuts were considered highly improbable, to say the least. Equity investors were almost coming to terms with the idea of policy normalization and the Fed was seen by conservative market observers and economists as one of the very few at least

Read More »

The Growing Opposition Against the ECB

October 23, 2019

Few investors and market observers were really surprised when Mario Draghi announced the ECB’s next massive easing package in mid-September. Cutting rates further into negative territory and the revival of QE were largely expected sooner or later, as the “whatever it takes” outgoing ECB President is now faced with a wide economic slowdown in the Eurozone. After all, over the last decade, the ECB has proved to be a “one-trick pony”, with negative rates and bond-buying being used as a cure-all and as the means to reach that ever-elusive 2% inflation target. Thus, the markets had already taken the new intervention for granted and that was reflected in the lukewarm reaction to its announcement. However, what was much less expected was the series of objections,

Read More »

THE GROWING OPPOSITION AGAINST THE ECB

October 21, 2019

Few investors and market observers were really surprised when Mario Draghi announced the ECB’s next massive easing package in mid-September. Cutting rates further into negative territory and the revival of QE were largely expected sooner or later, as the “whatever it takes” outgoing ECB President is now faced with a wide economic slowdown in the Eurozone. After all, over the last decade, the ECB has proved to be a “one-trick pony”, with negative rates and bond-buying being used as a cure-all and as the means to reach that ever-elusive 2% inflation target. Thus, the markets had already taken the new intervention for granted and that was reflected in the lukewarm reaction to its announcement. However, what was much less expected was the series of objections, challenges and even

Read More »

THE GROWING OPPOSITION AGAINST THE ECB

October 21, 2019

Few investors and market observers were really surprised when Mario Draghi announced the ECB’s next massive easing package in mid-September. Cutting rates further into negative territory and the revival of QE were largely expected sooner or later, as the “whatever it takes” outgoing ECB President is now faced with a wide economic slowdown in the Eurozone. After all, over the last decade, the ECB has proved to be a “one-trick pony”, with negative rates and bond-buying being used as a cure-all and as the means to reach that ever-elusive 2% inflation target. Thus, the markets had already taken the new intervention for granted and that was reflected in the lukewarm reaction to its announcement. However, what was much less expected was the series of objections, challenges and even

Read More »

A buying opportunity in precious metals

October 15, 2019

After a remarkable run over the past few months, gold and silver now appear to have entered a period of consolidation. Many speculators and short-term focused investors have sold their positions fearing a correction, while mainstream market commentators fuel these fears, with analyses that proclaim “the end of the road” for gold and silver.
Of course, nothing could be further from the truth. All the very serious concerns and the fundamental reasons that caused the metals to rise so aggressively in recent months are not only still intact, but they have grown, and spread, and find even more solid footing every time new data comes out of the Eurozone and the US. Recession fears among investors hit an all-time high in mid-September, according to a Bank of America Merrill Lynch survey, as

Read More »

A buying opportunity in precious metals

October 15, 2019

After a remarkable run over the past few months, gold and silver now appear to have entered a period of consolidation. Many speculators and short-term focused investors have sold their positions fearing a correction, while mainstream market commentators fuel these fears, with analyses that proclaim “the end of the road” for gold and silver.
Of course, nothing could be further from the truth. All the very serious concerns and the fundamental reasons that caused the metals to rise so aggressively in recent months are not only still intact, but they have grown, and spread, and find even more solid footing every time new data comes out of the Eurozone and the US. Recession fears among investors hit an all-time high in mid-September, according to a Bank of America Merrill Lynch survey, as

Read More »

A buying opportunity in precious metals

October 15, 2019

After a remarkable run over the past few months, gold and silver now appear to have entered a period of consolidation. Many speculators and short-term focused investors have sold their positions fearing a correction, while mainstream market commentators fuel these fears, with analyses that proclaim “the end of the road” for gold and silver.
Of course, nothing could be further from the truth. All the very serious concerns and the fundamental reasons that caused the metals to rise so aggressively in recent months are not only still intact, but they have grown, and spread, and find even more solid footing every time new data comes out of the Eurozone and the US. Recession fears among investors hit an all-time high in mid-September, according to a Bank of America

Read More »

A turning point in the bond market?

October 2, 2019

We’ve recently seen a lot of coverage and even more “expert analyses” on the state of the bond market, to the extent that the average investor, or the average citizen for that matter, is likely to be overwhelmed and very confused about what it all means. Experts from the institutional side and defenders of the current monetary direction argue that it is all the result of policy choices, that’s it’s all under control and that we really shouldn’t worry about the extreme phenomena and distortions we now see in the debt markets. However, it hardly takes an economist or a monetary policy expert to spot the many faults of this position.
 
Reality check
To strike at the core of this issue, we only need to examine a very basic question: Would you lend me $100 and agree to

Read More »

A turning point in the bond market?

October 1, 2019

We’ve recently seen a lot of coverage and even more “expert analyses” on the state of the bond market, to the extent that the average investor, or the average citizen for that matter, is likely to be overwhelmed and very confused about what it all means. Experts from the institutional side and defenders of the current monetary direction argue that it is all the result of policy choices, that’s it’s all under control and that we really shouldn’t worry about the extreme phenomena and distortions we now see in the debt markets. However, it hardly takes an economist or a monetary policy expert to spot the many faults of this position.
Reality check
To strike at the core of this issue, we only need to examine a very basic question: Would you lend me $100 and agree to receive $90 in return?

Read More »

A turning point in the bond market?

October 1, 2019

We’ve recently seen a lot of coverage and even more “expert analyses” on the state of the bond market, to the extent that the average investor, or the average citizen for that matter, is likely to be overwhelmed and very confused about what it all means. Experts from the institutional side and defenders of the current monetary direction argue that it is all the result of policy choices, that’s it’s all under control and that we really shouldn’t worry about the extreme phenomena and distortions we now see in the debt markets. However, it hardly takes an economist or a monetary policy expert to spot the many faults of this position.
Reality check
To strike at the core of this issue, we only need to examine a very basic question: Would you lend me $100 and agree to receive $90 in return?

Read More »