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While it is true that the average consumer isn’t (and won’t soon be) spending as much as he used to, it’s not because he’s waiting for bargains. No, it’s because he’s out of credit, he’s unemployed, his house, car, motorcycle, boat, and plasma television have all either been repossessed or foreclosed upon, and his wife just left him. He’s not exactly in the mood for shopping. He’s not waiting for bargains. He’s waiting for a miracle – and I don’t think they sell those at the mall. Words: 1582
August 15th, 2011 | Posted in Economy,Inflation/Deflation | Read More »
At present, the governors of the Fed are creating massive distortions in the financial markets with little hope of improving real economic growth or employment… Quantitative easing promises to have little effect except to provoke commodity [gold and silver] hoarding, a decline in bond yields to levels that reflect nothing but risk premiums for maturity risk, and an expansion in stock valuations to levels that have rarely been sustained for long (the current Shiller P/E of 22 for the S&P 500 has typically been followed by 5- to 10-year total returns below 5% annually). [Let me explain.] Words: 3066
December 14th, 2010 | Posted in Economy | Read More »
von Mises once said, “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later, as a final and total catastrophe of the currency involved” and just that is happening before our very eyes. Words: 2242
July 11th, 2010 | Posted in Economy,Inflation/Deflation | Read More »
Central banking makes it possible for the government to expand the money supply by any amount, at any time deemed necessary and once (hyper)inflation is publicly seen as being the lesser evil of all options available for the government meeting its debt service, it cannot be dismissed out of hand that (hyper)inflation would be the consequence of an unsustainable debt-to-GDP ratio. Words: 982
April 27th, 2010 | Posted in Debts/Deficits,Economy | Read More »
The debate over deflation/inflation continues as some of our most astute economic observers take sides. Frankly, I think that both sides are missing part of the picture. The debate concentrates on the after shocks of inflation/deflation: prices instead of the money supply and the demand for it. Words: 721
April 26th, 2010 | Posted in Inflation/Deflation | Read More »
Mladjenovic explains his contention that we are in for a inflationary depression and, as such, investors should put their money in those things that will benefit from both inflation and strong demand and supply and stay away from where there is a deflationary impact, such as real estate. Words: 825
March 19th, 2010 | Posted in Inflation/Deflation | Read More »
A survey of US hedge fund managers by London-based Moonraker Fund Management: 90 percent (20 of the 22) of the hedge fund managers surveyed admitted they had bought physical gold for personal investment. These sophisticated investors know something that the average investor doesn’t: that the global policy response to the financial crisis will not only devalue the world’s major currencies, it will decimate the US dollar. Words: 2233
March 17th, 2010 | Posted in Gold/Silver | Read More »
A soaring gold price is a vote of “no confidence” in the central bank and the dollar [and]… reflect a growing restlessness with the increasing money supply, our budgetary and trade deficits, our unfunded liabilities, and the inability of Congress and the administration to reign in runaway spending. Words: 1911
March 15th, 2010 | Posted in Gold/Silver,U.S. Dollar | Read More »
In order to prevent a recession from getting out of hand, the central bank must lift the money supply and aggressively lower interest rates. Once consumers have more money in their pockets, their confidence will increase, and they will start spending again, thereby reestablishing the circular flow of money, so it is held. Words: 542
March 13th, 2010 | Posted in Debts/Deficits,Economy | Read More »
When I look strictly at what’s actually going on in the world, I have to think that gold will go to at least $2,000 in this cycle and there are very credible scenarios in which it could go to a multiple of that number. Why am I so bullish for the yellow metal? Let me tell you why. Words: 469
March 9th, 2010 | Posted in Economy,U.S. Dollar | Read More »
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