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
Read More »NOTHING Can Stop Coming Inflation: Bank for International Settlements Report
A recent research paper* by the Bank for International Settlements, entitled "The Future of Public Debt: Prospects and Implications" paints a terrifying prospect for the inhabitants of most of the developed world with deficits spiralling out of control for every western industrialized country under study and inflation a foregone conclusion as a result. Words: 1128
Read More »Buffett, Russell and Hoisington: Deflation or Inflation? (+2K Views)
“Unchecked greenback emissions will certainly cause the purchasing power of currency to melt.” says Warren Buffett. Words: 982 In the following edited excerpts from the original article* Cam Hui (www.questfunds.com) puts forth the case for both inflation and deflation by the likes of Richard Russell, Warren Buffett and Van Hoisington: The Case for Deflation 1. De-leveraging There are many analysts …
Read More »Will We See the Dow at 4000 Once Again? (+2K Views)
Investors have a short memory, in 1995, the DJIA was around 4000. Today our economy, it could be argued, is actually weaker than it was back then. Words: 427
Read More »"This Time is Different: Eight Centuries of Financial Folly" – A Book by Reinhart and Rogoff (+3K Views)
Highly leveraged economies, particularly those in which continual rollover of short-term debt is sustained only by confidence in relatively illiquid underlying assets, seldom survive forever, particularly if leverage continues to grow unchecked. Words: 1264
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