Based on past massive monetary pumping, and using the time lag of 36 months which it normally takes before changes in money supply generate a visible effect on the prices of goods in general, we forecast that the yearly rate of growth of the CPI based inflation could rise to 2.4 percent by September of this year before jumping to 4.4 percent by December. Year on year, the rate of growth of the CPI less food and energy is forecast to climb to 1.5 percent by September before climbing to 2.7 percent in December. Let me explain. Words: 1670
March 1st, 2011 | Posted in Economy,Inflation/Deflation | Read More »
In Europe, they were able to come up with a clever moniker, PIGS, to succinctly represent [and name the countries in dire financial straights - Portugal, Iceland, Ireland, Greece and Spain] the most boorish animals on the farm, and [I have taken it upon myself to call the U.S. state budget crises] the story of CAIN (California, Arizona, Alaska, Illinois, New York and New Jersey), the seven most rotten pillars of our union, and (Un)Abel, the country as a whole, which is (Un)Abel, i.e. unable, to do anything about the impending crises. Given the current political climate and implicit anti-bailout mandate of the new Congress, the Federal government might be powerless to do anything but accept painful state defaults. Before we know it, we could all be ancestors of evil… 2011 could be the year that CAIN starts to face some serious trouble, and may need some serious help to avoid killing his brother (Un)Abel! Words: 1529
December 15th, 2010 | Posted in Debts/Deficits,Economy,Gold/Silver | Read More »
Fox News’ Glenn Beck has repeatedly stoked fears that the U.S. would see “massive inflation,” stating, as far back as 2008, that inflation would go “through the roof” in the “next year.” In fact, inflation remained low in 2009 and 2010 and looks to remain the same in 2011. Let’s review Beck’s prognostications one by one and come to our own conclusion. Words: 1764
December 7th, 2010 | Posted in Economy,Inflation/Deflation | Read More »
Our leaders in Washington are so detached from reality it begs the question, “What are they smoking?” I’m not talking about the insane amounts of spending that’s going on in our capital, or even about the patently unpayable debts and promises they’re making to all of us and our foreign creditors. Although I think these things, too, result from whatever drugs they’re on inside the beltway I am referring the way Washington manipulates its official statistics. Words: 1107
May 1st, 2010 | Posted in Economy,Inflation/Deflation | Read More »
Inflation lurks in the shadows. It destroys value by gradually eroding real returns over time. It is financial death by a thousand cuts. Investors too often look at “the numbers” in their portfolio without asking what those numbers can actually buy over time. It’s a classic mistake that John Maynard Keynes termed “money illusion.” Words: 1335
April 4th, 2010 | Posted in Economy,Inflation/Deflation | Read More »
The bond market is signaling that rising prices are just ahead and you should be worried. Don’t be deluded into thinking that inflation “might be coming” in the future and that once you see the signs you can protect yourself. If you wait too long to take precautions, this silent thief will most certainly steal your wealth and savings. Words: 853
March 1st, 2010 | Posted in Inflation/Deflation | Read More »
Hank Paulson, the Goldman Sachs bankster/US Treasury Secretary, who deregulated the financial system, caused a world crisis that wrecked the world financial system is writing in the New York Times urging that the mess he caused be fixed by taking away from working Americans the Social Security and Medicare for which they have paid in earmarked taxes all their working lives. Wall Street’s approach to the poor has always been to drive them deeper into the ground. Words: 777
February 26th, 2010 | Posted in Retirement Planning | Read More »
America’s massive debt and unfunded liabilities make inflation the only viable option for today’s policymakers because when the value of future dollars is diminished, future obligations in those depreciated dollars are diminished.
Words: 2808
February 16th, 2010 | Posted in Inflation/Deflation | Read More »
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