The performance in the stock market year-to-date has been unusually strong, especially so given the weak economic conditions of the country and the world. Financial assets have risen while economic conditions have been stagnant. How long can this divergence continue?… Read More »The Investor’s Dilemma
The Federal Reserve is the enabler of Federal government’s profligacy. It plays this role by monetizing the debt, i.e., purchasing Treasury bonds that otherwise could not be sold, or at least not sold for the artificially low interest rates that… Read More »Federal Reserve Policy Ensures Inflation
Economists have frequently used the Big Mac Index to compare prices in different countries as a marker regarding exchange rates. It is nearly the perfect product as it is available nearly everywhere and quality and portion-controlled tightly by McDonalds Corporation.… Read More »What Inflation?
Tim Price offers some important observations in this article: Credit expansion, wrote the great Austrian economist Ludwig von Mises, is not a nostrum to make people happy. “The boom it engenders must inevitably lead to a debacle and unhappiness.” That seems… Read More »An Inevitable, Unhappy Ending
It is no secret that politicians prefer inflation over tax increases. Zerohedge explains why: If the authorities raise taxes explicitly and openly, voters know exactly why they have less spending power. They also know how much less spending power they have.… Read More »Inflation Is Political Cowardice and Chicanery
Inflation, in a fiat currency world, is inevitable. It is not an economic inevitability but a political one. Politicians like to spend money and buy votes. They don’t like to raise taxes. A central bank makes it possible for them… Read More »Inflation Is Theft and Fraud
These four links from yesterday’s Drudge Report say it all: JOBLESS… INFLATION… POVERTY… RECESSION… Five years into this mess and we are no closer to climbing out. Collapse of financial institutions was averted (temporarily?) by massive infusions of government and… Read More »Our Fate Is Sealed
This video gives a wonderful overview of what is going on in the economy and in markets. Ty Andros and Gordon T. Long discuss our economic problem. A Must Watch! It is one of the best explanations of what lies ahead… Read More »Understanding Our New Investment Climate
Finally, some people are coming out and questioning the actions of the Federal Reserve. Here is a comment from David Einhorn (my emboldening): Sometimes you have to look at what is the base assumption. because sometimes you have a groupthink… Read More »The Government Is Helpless, Bankrupt and Immoral.
Any collection of the top anything is open to question. So it is with this post from Munknee.com. There are items that I would have excluded and others that I would have included. I might also quibble with the order,… Read More »The Top 18 Economic Documentaries
QE (quantitative easing), whether it be QE1 or QE10, is a euphemism. It represents the expansion of the money supply (printing money). An expansion of the money supply is inflation. Rising prices are not inflation, they are an effect of… Read More »Bernanke Continues to Pretend He Has Control
Doug Casey commenting on the past and the future: What we experienced in the 1930s was a deflationary depression where billions of dollars were wiped out with a stock market collapse, bond defaults, and bank failures. Inflationary money that was… Read More »Quote of The Day