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quantitative easing
One of the problems with the debate over the “national debt” is that there’s no generally agreed upon definition of that term. Is it what the federal government owes, or what it owes foreigners, or what the whole country, private and public sector together, owes? Does it include off-balance-sheet items and contingent liabilities? There’s a hundred-trillion dollar gap between lowest and highest on this spectrum, which allows each commentator to confuse the rest of us by picking the measure that best suits their point of view. [Let's try to decipher the true state of the nation.] Words: 1468
April 1st, 2012 | Posted in Debts/Deficits,Economy | Read More »
Recent favourable macroeconomic data has suggested that the U.S. economy could be back on track but the recent uplift in the economy only hides more fundamental problems…[The truth of the matter is that] US economic growth will remain weak and below trend throughout 2012 as a result of net exports continuing to be a drag and the Fed being unable, in the face of political constraints, [to do enough, soon enough,] to help the economy significantly… [Let me explain more fully why that is going to be the case.] Words: 950
March 12th, 2012 | Posted in Economic Overview,Economy | Read More »
Daniel Thornton, an economist at the Federal Reserve Bank of St. Louis, argues that the Fed’s policy of providing liquidity has “enormous potential to increase the money supply,” resulting in what The Wall Street Journal’s Real Time Economics blog calls “an inflation inferno.” [Personally,] I think it’s too soon to make significant changes to a portfolio based on inflation fears. Here’s why. Words: 550
March 11th, 2012 | Posted in Economy,Inflation/Deflation | Read More »
The growth in liquidity in global systems has become staggering…[reaching] a whopping $15 trillion – and rising – from the world’s eight largest central banks [alone as shown in the chart below.]…[That's equal to almost] one-third of world equity values…which means that central banks are creating another bubble…No wonder the stock market is rising. [With so] much liquidity,…and with interest rates so low, there is no place to go but “risk on” assets. [That being said,] investors need to know how to capitalize on this short term phenomenon and how to prepare for the inevitable burst. [Let me explain further.] Words: 489
March 6th, 2012 | Posted in Asset Allocation,Investing | Read More »
There is an all out assault on the part of global central banks to destroy their currencies in an effort to allow their respective governments to continue the practice of running humongous deficits. In fact, the developed world’s central bankers are faced with the choice of either massively monetizing Sovereign debt or to sit back and watch a deflationary depression crush global growth. Since they have so blatantly chosen to ignite inflation, it would be wise to own the correct hedges against your burning paper currencies.
February 21st, 2012 | Posted in Economy,Inflation/Deflation | Read More »
Currency wars arise when a country steals growth from trading partners by cheapening its currency to promote exports. The new currency war began in 2010 when President Obama declared in his State of the Union address that it was the policy of the United States to double exports in five years. Since the U.S. would not become twice as productive in five years, the implication was the U.S. would severely cheapen its currency to achieve this goal. [Let me expand upon this.] Words: 666
February 16th, 2012 | Posted in Economy,Inflation/Deflation | Read More »
I respect many of the writers who believe that we will experience hyperinflation… but I think they are jumping the gun. Hyperinflation is something that is easy to say – and it certainly achieves the sensational headlines that so many financial writers seek – but it is much more difficult to achieve. At this point none of the economic or political factors required to set off hyperinflation are present. The question should not be whether or not it is possible, but whether or not it is probable in America today and in my opinion the probability of such happening is very low. [Let me explain why that is the case.] Words: 2695
February 16th, 2012 | Posted in Economy,Inflation/Deflation | Read More »
The staggering debt situation throughout the industrialized world…will be terminal for the financial system we have known since the end of World War 2 [and, as such, have a major] impact…on the value of paper money and by extension, gold and silver. [Let me explain.] Words: 2328
February 16th, 2012 | Posted in Debts/Deficits,Economy | Read More »
This time is far worse than any other modern recession. What we are seeing now is a depression, despite what the NBER would have you believe. If you are still looking for the “Big One” to happen, you are too late. It happened here and it is still happening here and in Europe. They, like us, have tried to paper over most of the effects of the boom-bust business cycle malinvestment, and they have failed and the piper is at their door [as it is here in the U.S.]. The current economic “good news”, this supposed “recovery”, is largely based on fiat money steroids and will not last without continuous injections of new fiat money into the economy. [Let me explain.] Words: 2300
February 14th, 2012 | Posted in Economic Overview,Economy | Read More »
Every fiat currency known to man has failed at one time or another – every one – and ours will be no exception! What factors are contributing to this eventuality and what can be done to protect ourselves from this impending event? [Let me explain and provide you with links to 37 supportive articles to give you a complete picture of what is unfolding and why.] Words: 2700
February 9th, 2012 | Posted in Gold/Silver,Investing | Read More »
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