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In response to the financial crisis of 2008, the Fed injected unprecedented levels of liquidity into the banking system. While inflation has been modest to date, an analysis of similar periods in history shows that it typically takes more than two years for the impact on consumer prices to be seen. Consequently, we are now at a pivotal point in the current cycle as Fed stimulus began more than two years ago. [Let me explain further.] Words: 2755
June 3rd, 2011 | Posted in Economy,Inflation/Deflation | Read More »
While there can be little doubt that a default on the U.S. debt would lead to a financial crisis and would likely permanently reduce the role of the U.S. financial industry in world markets, it is also likely the case that the United States would rebound and possible rebound quickly from a default. [It most certainly is not] an end of the world scenario. [Let me explain.] Words: 478
April 1st, 2011 | Posted in Debts/Deficits,Economy | Read More »
A perfect storm of converging criteria is almost perfectly timed and aligned with the 2012 election cycle. When the moment arrives, the financial earthquake will rapidly demolish the existing highly precarious financial system. Government will stand by helpless, unable to shield itself, much less its vulnerable citizens or private financial institutions from the tsunami of debt and currency destruction. Let me explain. Words: 2055
March 31st, 2011 | Posted in Debts/Deficits,Economy | Read More »
Increases in spending and liabilities along with decreases in foreign lending equals a recipe for disaster. So, where will the money come from? This is a job for the printing press. While we are certainly facing deflation in the near term and a very choppy market, the groundwork has been laid for hyperinflation, soaring interest rates and exploding gold and silver prices. Words: 945
September 28th, 2010 | Posted in Debts/Deficits | Read More »
Gold is back in vogue. After spending much of the past three decades in the doldrums, gold is stirring and is generating great interest. Investors can be persuaded to buy equities, property and bonds without much convincing… [but] gold is different. They need to be convinced as to why they should own a precious metal that has little apparent utility. [Below we] will explain why owning gold is not only a prudent and intelligent idea, but that it is imperative to protect oneself through the most extreme uncertainty we have faced for generations. Words: 2101
September 22nd, 2010 | Posted in Gold/Silver,Investing | Read More »
It’s easy to lose perspective on where the global economy stands – to be confused by the daily deluge of information – so let’s look at the big-picture of where we are today. As an investor it can mean the difference between making and losing a lot of money. So let’s take a look and see [where we are at and what events are unfolding - slowly but surely]. Words: 1186
July 10th, 2010 | Posted in Economy | Read More »
At times like these, it is hardly going out on a limb to say that we are headed for hard economic times. In fact, it seems like almost everyone in the financial world is either declaring that a recession is coming or is busy preparing for one. The truth is that bad economic signs are everywhere. Words: 1171
July 4th, 2010 | Posted in Economy | Read More »
With all the attention being focused on whether or not there will be a sustainable recovery in 2010, the potential for a wave of sovereign-debt crises following the wake of the global recession has just recently started to appear on people’s radar screens – and such a wave should not be surprising. Words: 2541
April 11th, 2010 | Posted in Debts/Deficits,Economy | Read More »
There are very compelling arguments for both inflation and deflation. The answer will eventually depend on decisions made in Washington and how people react to those decisions. For now, let’s stop fooling ourselves and admit that we don’t know. It is a problem that has to be dealt with and there is no easy medicine. Either path will be painful, but that’s what we get for our two and a half decade debt binge. Words: 1142
April 9th, 2010 | Posted in Economy,Inflation/Deflation | Read More »
Once economic growth recovers, it is likely we will return to the market conditions of 2008. The price of $140 per barrel oil was not an aberration; it was a warning. An oil crisis is coming that could prove devastating to future economic growth. Given the long lead times of 5-to-10 years from oil discovery to production, we need to act now to avert this outcome. Words: 862
March 2nd, 2010 | Posted in Oil and Gas | Read More »
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