QUESTION: Do you think Congress would accept a debt for equity swap? I am not sure even their chief of staffs would understand this one. HD ANSWER: There is precedent for a debt-equity swap. That is actually the Hamiltonian Model. Alexander Hamilton proposed that the States who funded the Revolution should have their debts consolidated […]

QUESTION: sure enjoyed your conference via livestream and thank you for your blog site as it is very informative. I understand the swap of federal debt for equity in the form of coupons. then the coupons will be redeemed as cash from the treasury. what method of funding the coupons will the treasury use? I assume […]

COMMENT: Marty, I watched the Solution Conference with my son who is 18. While I at first thought it was a restatement of what you have been saying in different postings, my son’s eyes popped open. He said to me ‘Dad, he is right. He sees what we see. This is not working and there […]

Debt-equity swaps were used in the former Soviet satellites in Eastern Europe. This was the chief method of making the transition from communism to capitalism. Poland implemented an extensive privatization program back in 1990 and had privatized half of all state-owned enterprises by the end of 1994. Indeed, debt-equity swaps were introduced into the Polish process […]

  I would like to thank everyone for participating. This event may have been the largest financial conference in history with more than 5,000 attending from 47 countries. If everyone watched bringing just one friend, then we probably exceeded 10,000. The whole purpose of this event was to start the ball rolling with a discussion […]

  Well the Press is fully in bed with government and are advocating eliminating cash because someone broke into an ATM. Using this logic, we should all walk around naked as well and then we do not need the TSA to search us for obviously we could not hide a weapon. This is how it […]

The latest scandal is the DEA sex parties. Let me state this right now. EVERY drug dealer who had serious cash in NYC federal prison stated bluntly the amount of money reported as confiscated was about 50% of the real number. When they told their court-appointed lawyers, as corrupt as anyone can be, they said […]

The reaction rally in the markets appears to be unfolding on schedule. From the broader perspective, a corrective process in equities will send the residual cash into bonds and this may help create the final bubble top in interest rate markets. This should materialize with a correction in the dollar and that pop in the […]

  Tthe IMF said it is introducing a floor of 0.05 percent for the interest rate on Special Drawing Rights (SDRs). The IMF’s move shows how global financial conditions are heading into never-never-land. Just how are these governments going to handle the Great Recession? Will rates go to -10% to achieve stimulus? What they do not […]

France is calling it “low-cost terrorism” and are using the the recent attacks that they claim did not cost very much the reason to now track movement of gold, make it illegal to pay for anything in cash more than €1,000, and anyone trying to withdraw more than €10,000 in a single month in total will […]