Inflation

Schiff on Fed

Peter Schiff explains the stupidity inherent in Ben Bernanke’s objectives.

Investing in a Dangerous World

I am in the camp of those expecting high inflation or hyperinflation. The operative word is “expecting.” Nothing in the future is certain. Many others are in the opposite camp believing that deflation is the more likely outcome. The near-term evidence has been more supportive of their position. So much time is spent on this one issue because its ultimate [...]

More Inflation/Deflation Issues

This from BankImplode.com discussing the inflation-deflation debate. The conclusion, though not definitively stated, is that we are headed for inflation and likely hyperinflation. Readers know that this outcome is also my undesirable prediction. Can “Deflation” Catch a Falling Dollar? “Inflation is always and everywhere a monetary event,” so sayeth Milton Friedman. Following this intellectual tradition, recently Mish and other analysts define [...]

Bernanke’s Pickle

What a pickle Fed Chairman Ben Bernanke is in! Mr. Bernanke is on record for unequivocally stating that he knows how to avoid a deflationary outcome. He cavalierly dismissed any possibility of that happening a few years back. He cited printing presses and helicopters as weapons to combat the evil dragon of deflation. Yet, after the greatest monetary and fiscal [...]

A Personal Look at Hyperinflation

Recent comments by readers on hyperinflation that were prompted by the previous post, Williams on Hyperinflation, make me believe that the following link might be useful. It discusses inflation from a personal experience perspective and makes an argument for why financial assets will not do well in such a scenario. While I do not necessarily agree with that conclusion, it [...]

Deflation? Where?

Does this look like inflation? Wheat prices are up 54% since June Corn prices are up 26% since June Soybean prices are up 13% since June Cotton prices are up 20% since June Coffee prices are up 36% since June Sugar prices are up 38% since June Copper prices are up 18% since June Gold prices have risen 6% in [...]

Quote of the Day

From Peter Boockvar: … policy makers think we should raise the cost of goods and services in order to cure a lack of demand. The law of supply and demand says lower demand must be met by lower prices in order to get to the proper equilibrium. What the Fed really wants to do is create inflation in order to [...]

An American Future: The Shrinking Economy

A guest post in the “An American Future” series from Kevin: An American Future: The Shrinking Economy By Kevin at 20smoney.com As we continue a look at America’s future, we turn to the American economy.  What I’m proposing here is that the American economy has peaked in real terms.  For the years ahead, the economy will shrink in real terms – [...]

Inflation: The Last Gasp of the Obama Economic Crisis

Inflation is neither strategy nor solution; it is the last gasp of a desperate ruling class. Inflation is the inevitable ending of this awful economic crisis. The only questions are how much and when. Rising support champions inflation as a salvation strategy. Richard Russell in a recent newsletter provides the rationale (emboldening by Mr. Russell): In my opinion, the US [...]

Inflation or Deflation One More Time

Ludwig von Mises predicted that every expansionary boom would collapse. Either the currency would be destroyed or the expansion would stop plunging the country into a Depression. His first option, the destruction of the currency would be accompanied by high inflation (possibly hyperinflation) and then Depression. The end result in both cases is the bust. Is it possible that the [...]

Inflation is Inevitable

Inflation is Inevitable The debate continues over whether inflation or deflation is our fate. I believe that we will ultimately end up in a massive inflation, possibly hyperinflation. My reasoning has always been based on how I anticipate politicians to react to the soon-to-be recognized Depression that we are in and will remain in for a long time to come. [...]

Inflation Coming

An article by Michael Pento describes the Fed’s predicament rather well. Because of the continued slowing in the economy (what recover?), he believes the next Fed move will be to ease even more: The next ease from the Fed will most likely be in the form of ceasing to pay interest on excess reserves. Since October 2008, the Fed has [...]