Thursday , 20 September 2018


Tag Archives: monetary inflation

Asset Inflation: We Should Begin To Worry

We are not yet hoarding toilet paper and baked beans, but the prospect that we will be driven to do so has already been signalled to us. This article draws on the evidence of extreme overvaluations in equities and bonds worldwide, and concludes the explanation lies increasingly in a greater perception of risk against holding cash, or bank deposits.

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What is Financial Repression? Why It Will Fail

Financial repression occurs when governments channel funds into their own sovereign bonds in order to reduce debt levels through mechanisms such as directed lending, caps on interest rates, capital controls, debt monetization, or by other means. The promise of financial repression is that it will hold down government borrowing costs and reduce government debt levels, but critics argue that financial repression merely targets the producers of society, i.e., the middle class, and therefore harms the economy. Let's take a look at financial repression ands its supposed pros and cons. Words: 1486

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Monetary Inflation is Insidious and Like an Addictive Drug – Here are 8 Reasons Why

Money/credit expansion (inflation) is insidious and like an addictive drug. The first effects appear to be pleasant - a seeming increase, if not boom, in business; lower interest rates; more available credit and a decline in unemployment - BUT, unless the monetary stimulus is continued, and probably at increasingly higher doses, the temporary high disappears. Below is a sampling of what eventually happens when central bankers try to 'help' the economy by creating money out of nothing. Words: 799

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Low Real Interest Rates Say Gold Bull Still Has Legs! Here's Why

Many agree that the United States' massive budget deficits and global monetary inflation support the gold bull market. I don't see this changing in the near future. Still, sentiment is not enough upon which to rely. I need a yardstick and, for me, that yardstick is U.S. real interest rates. [Let me explain why that is the case.] Words: 1600

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Get Ready to be Financially Conscripted – and Face a Lower Standard of Living!

Get ready to be financially conscripted into a citizen army assembled for the greater cause of saving America from being swamped by a tsunami of debt as a new policy initiative known as "financial repression" takes hold. ‘Repression’ rhymes with ‘depression’ and that is what we may have to look forward to as rampant price inflation and permanently lower living standards take hold as a result. Let me explain. Words: 1797

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Understanding Inflation: It's Here – and It's Going to Get Worse, Much Worse!

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

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The Fed MUST Inflate Away Debt or Default So MAJOR Inflation IS Coming!

If our assessment is correct, over the coming years, stocks, precious metals, commodities and real-estate will appreciate in value versus paper currencies. Furthermore, on a relative basis, we expect precious metals and commodities to outperform all other asset-classes. Conversely, we anticipate that cash and fixed income instruments will probably turn out to be the worst assets to own over the next decade. Words: 869

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