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Category: Inflation

The analysis published under this category are as follows.

Economics

Sunday, October 19, 2014

Reasons the Bernanke-Yellen Asset-Price Inflation May Be Nearing Its End / Economics / Inflation

By: Joseph_T_Salerno

There are strong indications that the remarkable run up of asset prices in the last few years is beginning to run out of steam and may be on the verge of collapse. We will leave aside the question of whether the asset inflation is symptomatic of a garden-variety inflationary boom or is a more virulent bubble phenomenon in which prices are rising today simply because buyers anticipate that they will rise tomorrow.

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Economics

Thursday, October 16, 2014

The Inflation Imputation, Dear Saver, May You RIP / Economics / Inflation

By: John_Mauldin

A note has been circulating among economists, calling into question the wisdom of another group of economists who wrote an open letter to the Federal Reserve a few years ago suggesting that one of the risks of their quantitative easing program was increased inflation. Since we have not seen CPI inflation, this latter group is calling upon the former to admit they were wrong, that quantitative easing does not in fact cause inflation. To no one’s surprise, Paul Krugman has written rather nastily and arrogantly about the lack of CPI inflation.

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Economics

Wednesday, October 15, 2014

Governments Need Inflation, Economies Don't / Economics / Inflation

By: Peter_Schiff

In an article in the UK's Telegraph on October 10, veteran economic correspondent Ambrose Evans-Pritchard laid bare the essential truth of the nearly universal current embrace of inflation as an economic panacea. While politicians, CEOs and economists talk about demand stimulus and the avoidance of a deflationary trap, Evans-Pritchard reminds us that inflation is all, and always, about debt management.

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Personal_Finance

Tuesday, October 14, 2014

UK Savings and September 1.2% CPI Inflation / Personal_Finance / Inflation

By: MoneyFacts

Inflation figures released today show that the Consumer Prices Index (CPI) fell from 1.5% to 1.2% during September.

To beat inflation, a basic rate taxpayer at 20% needs to find a savings account paying 1.5% per annum, while a higher rate taxpayer at 40% needs to find an account paying at least 1.9%.

Of the 621 non-ISA accounts in the market today, there are 170 that basic rate taxpayers can choose to negate the effects of tax and inflation.

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Economics

Thursday, October 09, 2014

It’s Inflation All the Way, Baby! / Economics / Inflation

By: Gary_Tanashian

The title’s quote is one of many eminently quotable messages I had the pleasure of receiving over a few years of contact with a late, great and a very interesting man* named Jonathan Auerbach, who headed a unique specialty (emerging and frontier markets) brokerage in NYC called Auerbach Grayson.

Jon was an honest and ethical man.  He was also a gold bug (in that descriptor’s highest form) who innately understood the Kabuki Dance that has been ongoing by monetary authorities since the ‘Age of Inflation onDemand‘ (what guest poster Bruno de Landevoisin calls the Monetized New Millenium) started its most intense and bald faced phase in 2000.

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Economics

Tuesday, October 07, 2014

Inflation is Not the Only Way Easy Money Destroys Wealth / Economics / Inflation

By: Frank_Shostak

The US Federal Reserve can keep stimulating the US economy because inflation is posing little threat, Federal Reserve Bank of Minneapolis President Kocherlakota said. “I am expecting an inflation rate to run below two percent for the next four years, through 2018,” he said. “That means there is more room for monetary policy to be helpful in terms of … boosting demand without running up against generating too much inflation.”

The yearly rate of growth of the official consumer price index (CPI) stood at 1.7 percent in August against two percent in July. According to our estimate, the yearly rate of growth of the CPI could close at 1.4 percent by December. By December next year we forecast the yearly rate of growth of 0.6 percent.

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Economics

Wednesday, September 24, 2014

10 Things That Affect Your Purchasing Power / Economics / Inflation

By: Harry_Dent

Rodney Johnson writes: This might be considered “wonkish,” but it tells the story of how middle-class purchasing power has suffered since 2007.

Recently, the Federal Reserve released the 2013 Survey of Consumer Finances (SCF). This tri-annual survey is a treasure trove of information that provides a snapshot into the financial life of the median American in inflation-adjusted 2013 dollars. Notice that I said “median” and not “average”… that’s important.

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Economics

Thursday, September 11, 2014

Full Frontal Inflation / Economics / Inflation

By: John_Rubino

By now it’s an article of faith within the sound money community that most major countries have borrowed so much that they’re left with only two options: default on their debt through mass-bankruptcy and a new Great Depression, or inflate it away through stepped-up currency creation.

This is an investment thesis, since a given country’s choice will determine which asset classes rise and fall.

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Economics

Thursday, September 11, 2014

Doubling Down on Inflation / Economics / Inflation

By: Peter_Schiff

Friday's release of disappointing August payroll numbers should have been a jarring wake-up call warning Wall Street that the economy has been treading on thin ice. Instead the alarm clock was stuffed under the pillow and Wall Street kept sleeping. The miss was so epic in fact (the 142,000 jobs created was almost 40% below the consensus estimate) that the top analysts on Wall Street did their best to tell us that it was all just a bad dream. Mark Zandi of Moody's reacted on Squawk Box by saying "I don't believe this data." The reliably optimistic Diane Swonk of Mesirow Financial told Reuters the report "sure looks like a fluke, not a trend".

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Economics

Monday, September 08, 2014

Ten Reasons to Condemn Inflation / Economics / Inflation

By: MISES

Andreas Marquart writes: Inflation, defined as an expansion of the supply of unbacked money, is an elementary evil, always and everywhere that it occurs.[1] It is the ignored and core cause of numerous problems in the economy and in society, including:

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Economics

Thursday, September 04, 2014

Why Raising the Minimum Wage Will Increase Inflation and Hurt the Economy / Economics / Inflation

By: Jeff_Opdyke

It goes to show that even the president of the United States doesn’t understand why America’s economy is structurally flawed these days, despite the recovery.

At a Labor Day rally in Milwaukee on Monday, Mr. President said that if he had a service-sector job and “wanted an honest day’s pay for an honest day’s work, I’d join a union.”

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Commodities

Tuesday, September 02, 2014

U.S. Inflation Pressures in Core Food Components / Commodities / Inflation

By: EconMatters

Inflation Isn`t Moderating, It is Consolidating before the Next Leg Up

Inflation numbers of late have been helped by the drop in fuel costs, the agricultural grains have been brought down in the futures market by the overplanting of corn, but eating out for the weekend where shrimp, steak, other seafood and vegetables are consumed at dinner brings home the idea that restaurant costs are only going up on the whole, and expect menu prices to continue to be raised at your favorite restaurant.

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Economics

Wednesday, August 27, 2014

A Look at the Coming 30-year Inflation Cycle / Economics / Inflation

By: Clif_Droke

The upcoming bottom of the 60-year cycle will drastically alter the U.S. economic landscape. The ending of the long-term disinflationary/deflationary undercurrent will soon give way to a new long-term cycle of re-inflation/inflation, bringing with it both challenges and opportunities.

As we begin a new 60-year cycle, the main challenge for the Federal Reserve will be to resist the temptation to stimulate the economy during periods of sub-par growth. The saying, "Old generals fight the old wars" applies here as the Fed has always had difficulty in discerning the dominant economic undercurrent.

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Currencies

Monday, August 25, 2014

Myths About Money and Inflation / Currencies / Inflation

By: MISES

Patrick Barron writes: The following are six of the most prevalent economic myths that appear time and again in the mainstream media. I will give a brief description of each and a brief description of the economic reality, as seen from an Austrian perspective.

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Economics

Saturday, August 23, 2014

Inflation vs the Deflationary Straw Man / Economics / Inflation

By: Gary_Tanashian

No matter the debates over inflation vs. deflation, increasing employment vs. sound monetary policy or systemic health vs. fragility (and whatever else is flying around in Jackson Hole this week), the CPI marches onward and upward.  That is the system and it is predicated on creating enough money out of thin air while inflation signals are (somehow) held at bay.

The Straw Man* in this argument lives in the idea that inflation is not always destructive, that inflation can be used for good and honed, massaged and targeted just right to achieve positive ends to defeat the curse of deflation that is surely just around the next corner.  Currently, the Straw Man is supported by the reality of the moment, which includes long-term Treasury yields remaining in their long-term secular down trend.

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Economics

Wednesday, August 20, 2014

Inflation Watch: $245,000 to Raise a Child in United States / Economics / Inflation

By: EconMatters

Welcome to Middle-Income Family American Style

Yesterday the USDA`s annual report laid out another 2% increase in the cost to raise a child in the United States, and this only includes the costs associated with the age of 18, which any modern family realizes doesn`t include college, and the fact that many kids either live at home, or require financial help long after the age of 18.

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Economics

Tuesday, August 12, 2014

Hopelessly Devoted to Inflation / Economics / Inflation

By: Michael_Pento

In the middle of July the stock market finally awoke from its QE-induced coma and realized the Federal Reserve’s tapering, which has been going on for the last six months, was for real.  Like a child, who becomes accustomed to a parent that threatens punishment but never follows through, the market had been in denial to the Feds withdrawal of monetary stimulus. But now, thankfully, the ending of Fed asset purchases will be the pin that pops this QE-inflated market and economy.  But please do not confuse the end of QE with the Fed actually fighting inflation and selling trillions of dollars’ worth in Treasuries and mortgage backed securities (MBS)…because that will never happen.

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Economics

Monday, August 04, 2014

Inflation Trumps U.S. Economic Growth / Economics / Inflation

By: Peter_Schiff

With the first half of 2014 now in the books, many investors are happy with the performance thus far, especially given the economic headwinds that few saw coming. The 26% rally in U.S. stocks in 2013 gave way to a more modest 7% gain in the first half of 2014. Most see this as a positive development in a maturing market. But beneath the surface, important trends are emerging that should give investors reasons to re-evaluate their assumptions.

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Economics

Monday, July 21, 2014

Inflation's Real Cause / Economics / Inflation

By: Michael_Pento

According to Pimco's new Chief Economist, Paul McCulley, the Fed's war against inflation has been won! But, before we get out our party hats and plan the tickertape parade, we have to ask ourselves - for the past 27 years have we really been at war with inflation? Yes, during the late 1970's and early 80's a different Paul (Paul Volcker, Chairman of the Federal Reserve) waged a real battle against inflation. Mr. Volcker painfully took the Fed Funds rate to near 20 percent in June of 1981. The economy suffered a deep recession, it was a treacherous battle plan, but the Fed stayed the course because Volcker was correctly convinced that limiting the growth rate of the money supply was the key to popping asset bubbles, vanquishing inflation and establishing a sound economy.

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Economics

Wednesday, July 16, 2014

What the Facts Say About Inflation / Economics / Inflation

By: DailyWealth

Dr. David Eifrig writes: Investors are terrified of inflation right now...

But is it really a worry? Is it poised to eat away at your savings and wreck your income investments?

Many newsletter writers and talking heads say yes... According to them, inflation is already a big problem.

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Commodities

Wednesday, July 16, 2014

Which Way is Inflation Blowing? Watch Commodities / Commodities / Inflation

By: Gary_Dorsch

In an age when governments of every political leaning and ideological stripe distort economic data to promote their parties’ interests, it is hardly surprising that the nation’s inflation rate is reported in a manner that best suits their political needs. By the same token, in an age of near universal cynicism on the part of citizens towards their corrupt politicians, - it is entirely natural for official inflation data to be wildly at odds with the reality faced by consumers and businesses, and in turn, to be regarded with utter disbelief.

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Economics

Wednesday, July 09, 2014

This Is Disgusting — And the Food Sounds Gross Too / Economics / Inflation

By: John_Rubino

It is by now generally understood, at least in the sound money community, that inflation is much higher than the government admits and that the true extent of the problem is being hidden in various ways. But the specifics keep getting more and more disturbing. Here’s a recent Phoenix Capital note (via Zero Hedge) on the adulteration of our “food.”

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Economics

Tuesday, July 08, 2014

Inflation: Higher And Higher We Go / Economics / Inflation

By: Darryl_R_Schoon

In the end game, truth is found only at the margins

In  Time of the Vulture: How to Survive the Crisis and Prosper in the Process(2007, 2012 3rd edition), I wrote about inflation and its root cause:

In a credit-money system, over time the constant infusion of increasing amounts of credit will inevitably lead to higher and higher rates of inflation. Because common knowledge of this fact is not in the best interests of those benefiting from the system, it is hidden away. And in the US, hiding the real rate of inflation is done the old-fashioned way, by lying about it.

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Economics

Friday, July 04, 2014

John Williams Warns of Massive Inflation and Then Hyperiflation / Economics / Inflation

By: Videos

Jeff Weatherford of Sprott Money News, Interviews John Williams. (39.37)

He says; “The government has to address its long-term solvency issues if it’s going to survive, if it’s going to have any credibility in the rest of the world…We have ahead of us here probably the worst fundamentals ever facing the dollar…I don’t think things have ever been more negative.

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Economics

Friday, June 27, 2014

No Inflation ...Thanks to ObamaCare / Economics / Inflation

By: EconMatters

Healthcare Data Skewed

On Thursday the Personal Income and Outlays Report came out also known as the spending report and just like yesterday`s GDP downward revision the Healthcare component is playing havoc with the overall numbers, and it is pretty obvious due to the newly enacted Affordable Care Act also known as Obamacare.

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Economics

Thursday, June 26, 2014

The Fed Misrepresenting Inflation to Justify Inept Policy / Economics / Inflation

By: EconMatters

Government Data is useless

The final GDP calculation came out on Wednesday, and we have several takeaways from this latest revision. First of all government reporting data is all over the place, and not in a good way. I have no confidence that any of these numbers are actually right, and second with an ever changing economy, most of these data gathering tools are obsolete at best. The GDP number has now become a complete farce, the components used to calculate growth are so useless that we literally could have a plus 7% GDP quarter, and it mean absolutely nothing regarding the real health of the US economy!

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Economics

Monday, June 23, 2014

U.S. Fed’s “Noisy” Inflation Fantasy / Economics / Inflation

By: Michael_Pento

The Fed wants investors to be as unconcerned as the central bank is about inflation. Even though year over year consumer price inflation is above its target, the Fed chose in its latest press conference to claim the 2.1 percent YOY increase in prices paid merely represented “noisy” readings in the inflation gauge. However, the truth is that rising prices are a direct result of years’ worth of zero percent interest rates and $3.5 trillion in money printing provided courtesy of both Banana Ben Bernanke and the Counterfeiting Queen, Janet Yellen.

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Economics

Thursday, June 19, 2014

The Fed Just Lost Any Shred of Credibility on Inflation / Economics / Inflation

By: EconMatters

Those High Chicken Prices are just Noise – Tell that to the Cashier

The Fed today in their press conference lost any credibility on a number of issues, and it really goes to show that they have no clue what they are doing at this point. First they called the overheating inflation in the economy Noise, yes you heard right NOISE which is now showing up even in the watered down indexes used to track it by the Fed, and already above their target of 2% on a year over year basis and rising, (wait until you see the next two month`s CPI reports on a spike in gasoline prices as we enter the summer driving season).

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Stock-Markets

Tuesday, June 10, 2014

Wall Street Yield Trade: Another Explanation For Low Inflation / Stock-Markets / Inflation

By: EconMatters

In an unprecedented move to fight off the threat of deflation, ECB cut its main interest rate to near zero at 0.15%, and its interest rate on deposits to a negative 0.1% for the first time. This means ECB will now be charging banks 0.1% to hold their reserves. ECB hopes these aggressive measures would spur banks to ramp up lending, and also weaken the euro. France has long been arguing that high euro exchange rate is holding back the economic recovery in the Euro Zone.

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Economics

Saturday, May 31, 2014

How Inflation Helps Keep the Rich Up and the Poor Down / Economics / Inflation

By: MISES

Jörg Guido Hülsmann writes: The production of money in a free society is a matter of free association. Everybody from the miners to the owners of the mines, to the minters, and up to the customers who buy the minted coins — all benefit from the production of money. None of them violates the property rights of anybody else, because everybody is free to enter the mining and minting business, and nobody is obliged to buy the product.

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Economics

Friday, May 30, 2014

Fed's Lacker Warns U.S. Inflation Is Accelerating / Economics / Inflation

By: Bloomberg

Federal Reserve Bank of Richmond President Jeffrey Lacker told Bloomberg Radio host Kathleen Hays on "The Hays Advantage" today that inflation may not need to be too fast before the Fed raises the main interest rate. Lacker said, "I don't see us having to wait until inflation is actually getting to a place we don't like."

Lacker said, "We've seen inflation bottom out; I think it's pretty conclusive it's bottomed out in the last couple of quarters. And there's some tentative signs that a move back towards, a gradual move back towards 2 percent is in train, and I'm hopeful that that will play out over the year."

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Interest-Rates

Tuesday, May 27, 2014

Hot Inflation Reports to Dominate Next Fed Meeting / Interest-Rates / Inflation

By: EconMatters

Important Econ-Inflation Events

The Federal Reserve meeting begins Tuesday June 17th with the FOMC meeting announcement the following day Wednesday June 18th which will be followed by their forecasts and the Fed Chair press conference.

In the last Fed meeting a weak housing concern cropped up on the Fed`s agenda, but all the housing data has rebounded in the latest economic reports with the spring weather, and the new concern at next month`s Fed meeting will be inflation.

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Economics

Friday, May 23, 2014

U.S. Federal Reserve See No Evil / Economics / Inflation

By: Peter_Schiff

In this week's release of the minutes from its April 29-30 meeting, Federal Reserve policymakers made clear that they see little chance of inflation moving past their 2% target for years to come. In order to make such a bold statement, Fed economists not only had to ignore the current data, but discount the likelihood that their current stimulus will put further upward pressure on prices that are already rising.

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Politics

Thursday, May 22, 2014

Media reports costs of living rises as Good News! / Politics / Inflation

By: Jonathan_Davis

Some quotes from the BBC article – which no doubt – were repeated throughout the country all day and night yesterday:

“Food sales during the late Easter holiday made a significant contribution to the overall figure, the ONS said.

They were 6.3% higher in April against a year earlier”

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Economics

Thursday, May 15, 2014

How Inflation Picks Your Pocket / Economics / Inflation

By: MISES

Daniel James Sanchez writes: In the denouement of the film There Will Be Blood, the antihero Daniel Planview dramatically reveals to his nemesis that he has secretly siphoned away all of the latter's underground oil.

"Drainage!" he bellows, as only Daniel Day-Lewis can, "Drained dry. I'm so sorry. Here, if you have a milkshake, and I have a milkshake, and I have a straw. There it is, that's a straw, you see? You watching? And my straw reaches across the room, and starts to drink your milkshake. I... drink... your... milkshake! [sucking sound]"

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Interest-Rates

Friday, May 09, 2014

What the Fed’s Inflation Mania Means For Investors / Interest-Rates / Inflation

By: Graham_Summers

The signs of inflation continue to appear in the economy.

The Fed is ignoring this because the Fed is afraid of deflation… despite food prices, energy prices, healthcare costs, home prices and stocks soaring.

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Economics

Friday, May 02, 2014

The Upcoming Dawn of the 60-Year Inflation Cycle / Economics / Inflation

By: Clif_Droke

The latest action by the Federal Reserve is part of a policy shift, the most important one in fact of the last five years. The Fed's plan for unwinding its quantitative easing (QE) stimulus coincides with the bottom of the 60-year cycle of inflation/deflation. It couldn't be happening at a better time and the results will be either very positive or extremely negative, depending on where you stand when the smoke clears.

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Economics

Monday, April 07, 2014

Why Keynesian Economists Don’t Understand Inflation / Economics / Inflation

By: Frank_Hollenbeck

The “monetary cranks” and “ignorant zealots” of old are back preaching salvation if only we had more inflation.[1] Keneth Roggoff and Fed President Charles Evans did not mince words, while others have been more circumspect. Christine Lagarde warns us of the “ogre of deflation” and the “risks” of low inflation, while others have been urging easier monetary policy to reduce the value of the yen or the euro. Of course, it’s much easier to let this inflation tiger out of its cage than to get it back in.

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Economics

Sunday, April 06, 2014

Inflation Hysteria And The Revenge Of Central Banksters / Economics / Inflation

By: Andrew_McKillop

Christine Lagarde Wants “Low-Flation”

Lagarde has been rightly ridiculed and accused of “jabberwockery”, for example by David Stockman who also says that what she calls plain good sense, is “pure Keynesian claptrap”. She opines that one of her sincerest and enduring concerns for the global economy moving forward, is that “low-flation” especially in the Eurozone countries will or might suppress growth and jobs. So of course she is rooting for more Fed-style and ECB-style and BOJ-style, and BOE-style monetary easing. Print and forget!

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Economics

Friday, April 04, 2014

Meet "Lowflation": Deflation's Scary Pal / Economics / Inflation

By: Peter_Schiff

In recent years a good part of the monetary debate has become a simple war of words, with much of the conflict focused on the definition for the word "inflation." Whereas economists up until the 1960's or 1970's mostly defined inflation as an expansion of the money supply, the vast majority now see it as simply rising prices. Since then the "experts" have gone further and devised variations on the word "inflation" (such as "deflation," "disinflation," and "stagflation"). And while past central banking policy usually focused on "inflation fighting," now bankers talk about "inflation ceilings" and more recently "inflation targets". The latest front in this campaign came this week when Bloomberg News unveiled a brand new word: "lowflation" which it defines as a situation where prices are rising, but not fast enough to offer the economic benefits that are apparently delivered by higher inflation. Although the article was printed on April Fool's Day, sadly I do not believe it was meant as a joke.

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Economics

Monday, March 31, 2014

Inflation Is Coming, What to Do NOW! / Economics / Inflation

By: Jeff_Clark

We’ve all heard of the inflationary horrors so many countries have lived through in the past. Third-world countries, developing nations, and advanced economies alike—no country in history has escaped the debilitating fallout of unrepentant currency abuse. And we expect the same fallout to impact the US, the EU, Japan, China—all of today’s countries that have turned to the printing press as a solution to their economic woes.

Now, it seems obvious to us that the way to protect one’s self against high inflation is to hold one’s wealth in gold… But did citizens in countries that have experienced high or hyperinflation turn to gold in response? Gold enthusiasts may assume so, but what does the data actually show?

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Economics

Wednesday, March 26, 2014

Will Inflation Make A Comeback In 2014 When Consensus Worries About Deflation / Economics / Inflation

By: GoldSilverWorlds

Two months ago, Incrementum Liechtenstein released its chartbook entitled “Monetary Tectonics” which illustrated the raging war between inflation and deflation in 40 charts. Meantime, the authors of the chartbook have launched the “Austrian Economics Golden Opportunities Fund,” a fund that takes investment positions based on the level of inflation. The key tool in their investment decisions is the “Incrementum Inflation Signal” (also referred to as the “monetary seismograph”), a continuing measurement of how much monetary inflation reaches the real economy based on a series of market-based indicators.

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Economics

Monday, March 17, 2014

Inflation Does Not Produce Economic Growth / Economics / Inflation

By: Frank_Shostak

After settling at 3.9 percent in July 2011 the yearly rate of growth of the consumer price index (CPI) fell to 1.6 percent by January this year. Also, the yearly rate of growth of the consumer price index less food and energy displays a visible downtrend falling from 2.3 percent in April 2012 to 1.6 percent in January.

On account of a visible decline in the growth momentum of the consumer price index (CPI) many economists have concluded that this provides scope for the US central bank to maintain its aggressive monetary stance.

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Politics

Wednesday, March 12, 2014

We Are All Inflation Lab Rats Now / Politics / Inflation

By: Fred_Sheehan

"They sit there across the Pond, and sometimes I think they feel like they're in a lab and they're running experiments on rats and not understanding the consequences of what they are doing," the Russian president said at a press conference." ~ Russian President Vladimir Putin, March 4, 2014

Adam Posen, co-author with Ben S. Bernanke of Inflation Targeting: Lessons from the International Experience gave a thumbs up to the Japan's inflation-targeting experiment in the February 25, 2014, Financial Times: "Abe Has Good Medicine but Japan Needs a Stronger Dose." The heavyweight (literally) economist opens: "Japan's recovery program is showing promising early results." Results include the falling currency that has led a creditor country (Japan has been a net lender since 1981) to post whopping trade deficits in recent months, of increasing size.

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Economics

Thursday, March 06, 2014

How Inflation Destroys the Wealth of Nations / Economics / Inflation

By: Joseph_T_Salerno

Brendan Brown is a rara avis — a practicing financial economist and shrewd observer of financial markets, players, and policies, whose prolific writings are informed by profound theoretical insight. Dr. Brown writes in plain English yet can also turn a phrase with the best. “Monetary terror” vividly and succinctly characterizes the policy of the Fed and the ECB (European Central Bank) to deliberately create inflationary expectations in markets for goods and services as a cure for economic contraction; the “virus attack” of asset price inflation well describes the unforeseeable suddenness, timing, and point of origin of asset price increases caused by central bank manipulation of long-term interest rates and the unpredictable and erratic path the inflation takes through the various asset markets both domestically and abroad.

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Economics

Saturday, January 18, 2014

Why Central Bankers Should Not Tinker with Aggregate Prices / Economics / Inflation

By: MISES

Frank Hollenbeck writes: In November, the ECB (European Central Bank) surprised the markets by dropping its refinancing rate to 0.25 percent to avoid dreaded deflation, and announced it seeks to keep “price growth steady at about 2 percent” which is obviously a target and not a ceiling. Recently-tame inflation data is “worrisome” for many economists and has increased calls for the ECB to be even more aggressive. Central bankers and economists remain committed to the idea that the economy can be managed by manipulating prices in the aggregate.

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Economics

Wednesday, January 15, 2014

Incompetent Bank of England Celebrates Inflation Success for 1 Month out of 50 / Economics / Inflation

By: Nadeem_Walayat

The Bank of England and Coalition Government politicians were accompanied by hip hip hurray cheers right across the mainstream media as all were found celebrating the good news that the the Bank of England has achieved its primary remit for the targeting of 2% CPI Inflation for December 2013 data (RPI 2.7%, Real 3.6%), the first time the central bank has achieved its official target for the duration of the Coalition government as the CPI inflation rate has spent the whole of this parliament well above the target, ranging as high as 5.2% as illustrated by the graph below.

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Economics

Sunday, January 12, 2014

Inflation via QE - The Malachi Crunch Continues 2014 / Economics / Inflation

By: Andy_Sutton

Those of you who have known me any length of time know that I love to say ‘they always tell you what they’re going to do’. I had a really scintillating discussion yesterday with two fellow economists as to why that might be and we’ll shelve that for now, but let’s just say this: ‘they’ are at it again. Last week I referenced an IMF working paper penned by Harvard dynamic duo Ken Rogoff and Carmen Reinhart regarding asset confiscation and other ways to wiggle our way our the current economic morass that we find ourselves in. This week I’m going to perform a full dissection because there is material in there that you simply cannot go on without knowing if you expect to salvage even a shred of your financial state as it exists today.

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Currencies

Tuesday, January 07, 2014

U.S. Dollar Crisis Inflation Hammer 2014 / Currencies / Inflation

By: Videos

Economist John Williams thinks 2014 will mark the beginning of hyperinflation. Williams contends, “You are going to see, early on, a crisis in the dollar that will start to trigger the inflation . . . as the inflation picks up, that’s going to savage the economy, which is already in a depression. It never recovered.” Forget what you have heard about the so-called recovery. Williams says, “The consumer is in trouble. There is nothing happening to turn the economy around.” The weak economy is bad news for the dollar. According to Williams, “Anything that would suggest deficit deterioration here, and a weak economy would do that, will have a devastating impact on the dollar.” And if foreigners start selling some of the 12 trillion U.S. dollar based assets, such as bonds and currency, things will turn ugly fast. Williams says, “We’re dependent on the rest of the world continuing to go along with us and continue to support the dollar.

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Economics

Saturday, December 21, 2013

After the QE Taper: The Fed’s Non-Plan Is Unchanged / Economics / Inflation

By: MISES

Frank Hollenbeck writes: As an economist, it is getting more difficult to understand the logic underlying current monetary policy in the U.S. There are two main channels by which economists think monetary policy can influence growth and employment. The first is to lower interest rates to spur investment and consumption spending. The second is to induce inflation so real wages drop, spurring output and employment.

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Economics

Wednesday, December 18, 2013

Inflation in the United States - Keeping it Real! / Economics / Inflation

By: James_Quinn

“One only needs to reflect on the dramatic decline in the value of the dollar that has taken place since the Fed was established in 1913. The goods and services you could buy for $1.00 in 1913 now cost nearly $21.00. Another way to look at this is from the perspective of the purchasing power of the dollar itself. It has fallen to less than $0.05 of its 1913 value. We might say that the government and its banking cartel have together stolen $0.95 of every dollar as they have pursued a relentlessly inflationary policy.” - Ron Paul – End the Fed

The BLS reported the CPI this morning. They tell me that inflation is well contained and has only risen by 1.2% in the past twelve months. Our beloved Federal Reserve chairman is worried inflation is too low. It is fascinating that the only people worried about inflation being too low are Ivy League educated economists and bankers whose wealth depends upon the middle class sinking further into poverty.

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Politics

Friday, December 13, 2013

Venezuela’s High Inflation Playbook: The Communist Manifesto / Politics / Inflation

By: Steve_H_Hanke

t seems as though each passing day brings yet another piece of bad economic news coming out of Venezuela. For months, I have been tracking the decline of Venezuela’s economy and its currency, the bolivar. As if a collapsing currency, and the resulting inflation and empty shelves weren’t bad enough, Venezuela is now struggling with massive blackouts. Forget the Whig interpretation of history; Venezuela supports the schoolboys’ interpretation: “it’s just one damn thing after another.”

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Stock-Markets

Thursday, December 05, 2013

Is U.S. Inflation Running at 7.7%? / Stock-Markets / Inflation

By: Profit_Confidential

Michael Lombardi writes: Can you believe this?

The Bureau of Labor Statistics (BLS) reports the U.S. economy experienced deflation in October. The Consumer Price Index (CPI), a widely followed government measure of inflation, declined 0.1% in October.

The Producer Price Index (PPI), which measures the change in prices that producers pay, also declined in October—by 0.2%, continuing its slide from September when it declined 0.1%. (Source: Bureau of Labor Statistics web site, last accessed December 2, 2013.)

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Stock-Markets

Tuesday, December 03, 2013

Inflation - Gasoline $1/Gallon / Stock-Markets / Inflation

By: Don_Miller

My children will never let me forget this: while on a Carter-era family vacation to Florida, I pulled into a gas station and abruptly drove off, announcing, "I'll be damned if I will pay $1/gallon for gasoline." With each passing mile on I-75, the prices got higher and I became even more frustrated. Finally, I had no choice but to pay the price because the car was running on fumes. Then I watched the kids snicker in the backseat as I pumped the gas.

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Stock-Markets

Saturday, November 30, 2013

The Economist's Sell Signal / Stock-Markets / Inflation

By: Fred_Sheehan

The disintegration of central banking shifted to overdrive in November. The Senate Banking Committee's listless accreditation of Janet Yellen as next Fed chairman was not a surprise, but it was notable that vigorous critics of Chairman Bernanke, such as Senator Bob Corker, dozed through the hearing. When the bubble of all bubbles bursts, and the Senate and Congressional oversight committees fulminate at central bankers, it will be those politicians who should sit in the dock. They could have acted. Instead, the Senate is whisking Bernanke-Squared to the throne, as quickly and quietly as possible.

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Economics

Friday, November 29, 2013

Inflation, Shortages, and Social Democracy in Venezuela / Economics / Inflation

By: Matt_McCaffrey

The economic turmoil in Venezuela has received increasing international media attention over the past few months. In September, the toilet paper shortage (which followed food shortages and electricity blackouts) resulted in the “temporary occupation” of the Paper Manufacturing Company, as armed troops were sent to ensure the “fair distribution” of available stocks. Similar action occurred a few days ago against electronics stores: President Nicolás Maduro accused electronics vendors of price-gouging, and jailed them with the warning that “this is just the start of what I’m going to do to protect the Venezuelan people.”

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Economics

Thursday, November 28, 2013

The Fed Must Inflate or Die / Economics / Inflation

By: MISES

Chris Martenson writes: The Fed is busy doing everything in its considerable power to get credit (that is, debt) growing again so that we can get back to what it considers to be “normal.”

But the problem is that the recent past was not normal. You may have already seen this next chart. It shows total debt in the U.S. as a percent of GDP:

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Economics

Friday, November 22, 2013

Fed-induced Inflation - Pushing on a Rope or Lighting a Short Fuse / Economics / Inflation

By: Dr_Jeff_Lewis

Many regard the risk of inflation as low, since the Fed's money distribution or credit mechanism is limited by how the banks decide to lend. While credit worthy businesses and consumers are still de-leveraging, the transmission mechanism will eventually come. This will occur, for the most part, thanks to the Treasury.

So then how can the Fed push money into the economy?

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Economics

Saturday, November 16, 2013

Venezuela’s House of Cards Inflation Trending Towards Hyperinflation / Economics / Inflation

By: Steve_H_Hanke

The story of the Venezuelan economy and its troubled currency, the bolivar, can be summed up with the following phrase: “From bad to worse”—over and over again. Yes, the ever deteriorating situation in Venezuela has taken yet another turn for the worse.

In a panicked, misguided response to the country’s economic woes, Venezuelan president Nicolas Maduro has requested emergency powers over the economy. And the Maduro government recently announced plans to institute a new exchange rate for tourists in an attempt to quash arbitrage-driven currency smuggling.

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Stock-Markets

Wednesday, November 13, 2013

When Inflation Strikes Back / Stock-Markets / Inflation

By: Clif_Droke

Is there such thing as too little inflation? To listen to some economists the answer is an emphatic “no!” Fed chief Ben Bernanke certainly doesn’t believe in the concept of low inflation. Neither does ECB president Mari Draghi. But the question must be asked: with so much official opposition to low inflation, how will America’s middle class ever fully recover from its current malaise?

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Economics

Wednesday, November 13, 2013

The Language of Inflation / Economics / Inflation

By: John_Mauldin

My good friend Dylan Grice takes a very interesting tack in the latest issue of his Edelweiss Journal, today's Outside the Box. Rather than attacking our macroeconomic problems directly with economic tools, he approaches them from the point of view of what he calls a "subtle but significant devaluation of language." Now, you might think that the words we use to describe and understand the economy are not in themselves very powerful economic determinants, but Dylan lays out a convincing case to the contrary.

Dylan has fun with a Google app called Ngram Viewer, which allows users to search for the occurrence of words or phrases (or n-grams, which are combinations of letters) in 5.2 million books published between 1500 and 2008, containing 500 billion words, in American English, British English, French, German, Spanish, Russian, and Chinese.

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Economics

Tuesday, November 12, 2013

Europeans Looking To Inflate Their Debts Away / Economics / Inflation

By: MISES

Andrew Cullen writes: There was relatively good news for consumers in the Eurozone last week. Data released for the consumer price index (CPI) during October showed that the rate of inflation fell from 1.1 percent to 0.7 percent.

At a time when unemployment is high and increasing and taxation is on the rise, this brings some small relief to cash-strapped households whose real disposable incomes have been in decline for at least 5 years. It’s only a small relief. The CPI is designed in such a way as to deliberately exclude key consumer necessities like food and energy which, if included, would push the measured price inflation rate higher.

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Politics

Monday, November 11, 2013

Chained CPI Inflation Chains Taxpayers / Politics / Inflation

By: Dr_Ron_Paul

One of the least discussed, but potentially most significant, provisions in President Obama's budget is the use of the "chained consumer price index" (chained CPI), to measure the effect of inflation on people's standard of living. Chained CPI is an effort to alter the perceived impact of inflation via the gimmick of "full substitution." This is the assumption that when the price of one consumer product increases, consumers will simply substitute a similar, lower-cost product with no adverse effect. Thus, the government decides your standard of living is not affected if you can no longer afford to eat steak, as long as you can afford to eat hamburger.

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Economics

Tuesday, November 05, 2013

Inflation Has Not Cured Iceland’s Economic Problems / Economics / Inflation

By: David_Howden

No two countries’ responses have polarized commentators over the past five years more than the contrasting post-crisis policies in Iceland and Ireland.

In a paper published in Economic Affairs (available here as a PDF) I contrast the policies enacted by Iceland and Ireland, perhaps the two countries most affected by the liquidity freeze of 2008. A common conclusion has been that one country did everything right and the other did everything wrong, however, I take a more pragmatic approach. There are some positive aspects in each case, and other aspects we can do without.

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Economics

Thursday, October 31, 2013

A Long-Term Look at Inflation / Economics / Inflation

By: PhilStockWorld

Courtesy of Doug Short: The October 2013 Consumer Price Index for Urban Consumers (CPI-U) released today puts the September year-over-year inflation rate at 1.18%, less than third the 3.90% average since the end of the Second World War and 51% lower than its 10-year moving average.

For a comparison of headline inflation with core inflation, which is based on the CPI excluding food and energy, see this monthly feature.

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Economics

Wednesday, September 25, 2013

Iran Rouhani Delivers Lower Inflation, and other Troubled Currencies Project Updates / Economics / Inflation

By: Steve_H_Hanke

Iran: Prior to Hassan Rouhani’s election as Iran’s new president in June, the black-market Iranian rial to U.S dollar (IRR/USD) exchange rate stood at 36150, implying an annual inflation rate of 109 percent (June 15th 2013). Since Rouhani took office, Iranian expectations about the economy have turned positive, or at least less negative, and the black-market IRR/USD exchange rate has strengthened to 29200. In consequence, the implied annual inflation rate has fallen like a stone, and currently sits at 20 percent. That’s even lower than the most recent official annual inflation rate of 35.1 percent. (August 2013).

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Economics

Saturday, September 14, 2013

The Silent Assassin Of The U.S. Economy / Economics / Inflation

By: Clif_Droke

When most people think about the biggest threats to the U.S. economy they usually mention things like the budget deficit, the national debt or the trade gap. What rarely gets mentioned as a potential economy killer is something we all have to face every day yet mainstream economists refuse to acknowledge it.

The biggest problem in the economy isn't the excessive amount of public or private debt; it's the extremely high level of prices for basic commodities like food and fuel. Economists consistently underestimate how much of the middle class worker's paycheck goes to buying these two essential needs. For all of its successes, the Fed's QE program did nothing to alleviate high retail food and fuel prices. If anything, it may have actually increased them.

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Personal_Finance

Friday, September 13, 2013

Inflation, Stealth Taxes Consume Stock Gains & Retirement Plans / Personal_Finance / Inflation

By: Dan_Amerman

Why is there a fundamental mismatch between stock market performance as reported in financial headlines – and the actual retirement behavior of the many millions of Americans who own those stocks in their portfolios?

Using 15 years of stock market performance data and the type of analysis tools used by sophisticated wealth management professionals, we will solve that mystery in this research-based tutorial. The results may come as a major surprise, even for well read and financially literate investors who have been buying stocks for decades.

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Economics

Wednesday, September 04, 2013

Fear the Inflation / Economics / Inflation

By: Michael_Pento

While officials from the Federal Reserve gather recently in Jackson Hole Wyoming to bemoan that inflation isn’t yet high enough for their liking, the truth is that inflation is already ravaging the middle class.

To prove my point, the government’s official reading on core CPI inflation (one of the Fed’s preferred metrics that removes food and energy prices) increased just 1.7% from July 2012. So, in the mind of those who control the value of our currency, inflation is well below their target of 2%; and therefore needs to be increased.

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Economics

Tuesday, September 03, 2013

3 Ways Inflation Destroys an Economy / Economics / Inflation

By: Richard_Moyer

If Batman has the Joker, I have inflation. Inflation, my great and worthy opponent, has shown me yet another side of his wicked, wealth-destroying ways. Let's have a look.

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Economics

Wednesday, August 21, 2013

Inflation - Deflation Confusion, Financial Reality Hidden By Commonly Used Theory and Jargon / Economics / Inflation

By: Dan_Amerman

As we will explore in this analysis, when we look at two of the largest sources of net worth in the United States – housing and stocks – then what history shows us is that for 22 out of the 40 years between 1972 and 2012, much of the truth about financial performance has been almost invisible to people who have been relying on the most commonly used definitions for inflation and deflation.

That is, most people phrase the question as being one of either a) inflation, or b) deflation, meaning it has to be one or the other and obviously can't be both together.  As we will explore using simple to follow, round number examples, taking this seemingly common sense approach leaves us unable to distinguish between a 20% gain, a 20% loss and a 94% loss. 

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Economics

Friday, August 09, 2013

A Monetary Master Explains Inflation / Economics / Inflation

By: Terry_Coxon

[Ed. note: One of the best things about being a partner in a research firm employing about 40 analysts is that I have unfettered access to really smart people. While we have a great team with expertise across the spectrum, when it comes to monetary matters, my go-to guy is Terry Coxon, a senior editor for our flagship publication, The Casey Report.

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Politics

Saturday, August 03, 2013

Ruinous Inflation Proposals Mean America Will Be Zimbabwe 2 / Politics / Inflation

By: Michael_S_Rozeff

In this day and age, one should never assume that “educated” persons, especially those who have “earned” advanced degrees in economics, know the least bit of economics or possess the least bit of sense that might steer them away from the refuse that passes for economic thought. This is especially true in the case of those who propose ruinous money policies, thereby joining the ranks of monetary cranks and demonstrating to one and all an economics IQ south of 25.

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Economics

Friday, August 02, 2013

Ravenous Vampire-Hounds Of Inflationary Hell / Economics / Inflation

By: Richard_Daughty

Thinking back on it, I see that I was, indeed, “on the edge” of going, as I seem to routinely be these days, completely berserk about how the evil Federal Reserve is creating so irresponsibly much, so staggeringly much, so impossibly much, so disastrously much excess currency and credit that We’re Freaking Doomed (WFD) to ruination and complete bankruptcy by the unstoppable inflation in prices, crushing weight of unpayable debt and a monstrous, suffocating government.

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Economics

Friday, July 19, 2013

Are Higher Oil Prices About to Set Off an Inflationary Spiral? / Economics / Inflation

By: Money_Morning

Dr. Kent Moors writes: There is a long-held belief that significant increases in oil prices are harbingers of building inflationary pressures.

It follows from the observation that a market able to absorb more expensive oil is also one where prices are rising elsewhere.

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Economics

Friday, July 12, 2013

Inflation - The Real Thing / Economics / Inflation

By: Fred_Sheehan

"[T]he concept of the general price level is extremely vague and we cannot even speak of a very approximate determination of the average price level. Every index number is to a certain extent arbitrary: the selection of the commodities that are to be included, the choice of the weighting, the base from which the index starts, and, lastly, the mathematical processes applied, are all arbitrary..."

-Wilhelm Röpke, Crises and Cycles, 1936

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Economics

Thursday, July 11, 2013

No U.S. Inflationary Risk, Banks May Shrink Balance Sheets / Economics / Inflation

By: Bloomberg

BlackRock CEO Larry Fink joined Bloomberg Television's Erik Schatzker and Sara Eisen on "Market Makers" today and said he does not see any inflationary risk in the United States. Fink went on to say that banks may shrink balance sheets on rules requiring financial companies to have higher capital ratios: "If they shrink their balance sheet, we're going to have a more aggravated problem in the future because banks are the largest owner of U.S. Treasuries."

During the hour-long interview, Fink gave insights on China, emerging markets, the bond market, the role the wants BlackRock to play in the market, and his thoughts on Ben Bernanke, Hillary Clinton and President Obama.

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Economics

Tuesday, July 02, 2013

Syria’s Annual Inflation Hits 200% / Economics / Inflation

By: Steve_H_Hanke

In an attempt to beat Western sanctions and halt the fall in the Syrian pound, the Assad regime – with the help of Iran, Russia, and China – has begun conducting all of its business in rials, roubles, and renminbi. This decision supplements other existing arrangements between Syria and its allies that are keeping the Syrian economy on life-support. These include transfers of $500 million per month in oil and an unlimited credit line with Tehran for food and oil-product imports.

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Commodities

Saturday, June 29, 2013

The Misunderstood Link Between Crude Oil, Natural Gas and Inflation / Commodities / Inflation

By: Money_Morning

Dr Kent Moors writes: According to conventional wisdom, there can't be a significant rise in inflation without a corresponding, and usually preceding, jump in energy prices.

In fact, the correlation between energy prices and inflation has become almost a mantra among some market pundits.

Unfortunately, the reality is somewhat different than what's portrayed by talking heads in thirty- second sound bites.

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Economics

Friday, June 14, 2013

What's Going on with Inflation Today... and What to Do About It / Economics / Inflation

By: DailyWealth

Dr. David Eifrig writes: Every month, about 300,000 Americans celebrate their 65th birthday. This is the age most of us think of when we hear "retirement."

The arch nemesis of those newly minted retirees is inflation.

Most folks looking to retire need safe investment income. This traditionally comes from owning bonds, which pay a fixed rate. But if your income stream is fixed... and the price of goods and services shoots higher... your cash stream is worth less. If you're relying on that income for your retirement, you could be in trouble.

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Economics

Thursday, June 13, 2013

Iran’s Inflation Bogey / Economics / Inflation

By: Steve_H_Hanke

With Friday’s Iranian Presidential election fast approaching, there has been a cascade of reportage in the popular press about that opaque country. When it comes to economic data, Iran has resorted to lying, spinning and concealment – in part, because of its mores and history, and more recently, the ever-tightening international sanctions regime. In short, deception has been the order of the day.

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Economics

Tuesday, June 11, 2013

Here's Your Inflation / Economics / Inflation

By: Michael_Pento

Wall St. Pundits have summarily exculpated Ben Bernanke from the negative effects derived from artificial interest rates and massive increase in the Fed's balance sheet. Specifically, most market commentators now claim with certainty that the central bank's unprecedented manipulation of markets has been done without creating any inflation.

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Economics

Friday, May 24, 2013

Is the United States the Next Argentina? Part 2 / Economics / Inflation

By: Money_Morning

Garrett Baldwin writes: As I wrote yesterday, government interventions in the marketplace and out of control cronyism have decimated Argentina, one of the most prolific economies of the early 20th century.

But after my week spent there, I can tell you the people of Argentina face an even more troubling problem. It's out of control inflation and it continues to grow worse.

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Stock-Markets

Tuesday, May 21, 2013

Inflation Is The Lifeblood Of A Healthy Economy / Stock-Markets / Inflation

By: I_M_Vronsky

Inflation Is To An Economy What Blood Pressure Is To The Human Body

It is a well-known medical fact that more people die from LOW BLOOD PRESSURE then from high blood pressure.

Therefore, if one accepts the premise that Inflation is to an Economy what Blood Pressure is to the Human Body,  it then logically follows that low inflation rate over a protracted period will eventually and inevitably destroy a heretofore healthy economy.

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Economics

Tuesday, May 14, 2013

How the Fed Undermines the Econcomy - Stable Prices, Unstable Markets / Economics / Inflation

By: Frank_Shostak

According to European Central Bank Governing Council member Ewald Nowotny, Federal Reserve Chairman Ben Bernanke sees no risk of inflation in the United States. According to Nowotny, Bernanke had given a “very optimistic” portrayal of the US outlook.

“They see absolutely no danger of an expansion in inflation,” Nowotny said. Bernanke had said US inflation should be 1.3 percent this year.

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Economics

Saturday, May 11, 2013

Wage Inflation - A Bond Bull Turns Bearish / Economics / Inflation

By: John_Mauldin

"The large shortfall of employment relative to its maximum level has imposed huge burdens on all too many American households and represents a substantial social cost. In addition, prolonged economic weakness could harm the economy's productive potential for years to come. The long-term unemployed can see their skills erode, making these workers less attractive to employers. If these jobless workers were to become less employable, the natural rate of unemployment might rise or, to the extent that they leave the labor force, we could see a persistently lower rate of labor force participation." - Janet L. Yellen, Vice-Chair, US Federal Reserve, March 4, 2013

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Economics

Friday, May 10, 2013

Symptoms Don't Lie, The Economic Patient is Getting Sicker / Economics / Inflation

By: Peter_Schiff

A good doctor will not simply make a diagnosis based on measurements. The symptoms and complaints expressed by the patient are at least as important in making a determination as the data provided by diagnostic tools. When the data says one thing and the symptoms continuously say another, it makes sense to question the reliability of the instruments. This would be particularly true if the instruments are furnished by a party with a stake in a favorable diagnosis, say an insurance company on the hook for treatment costs. The same holds true for the U.S. economy. Although our government-supplied data suggests we are experiencing low inflation and modest economic growth, the economy shows symptoms of low growth, rising prices, and diminishing purchasing power.

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Interest-Rates

Friday, May 10, 2013

Long-Term Investors in Danger From Higher Inflation Expectations? / Interest-Rates / Inflation

By: InvestmentContrarian

Sasha Cekerevac writes: One of the biggest concerns for investors when it comes to long-term investing is the safe return of their capital. Following the 6.75% levy imposed by Cyprus on deposits of less than 100,000 euros, many investors were shocked that such an event could take place.

Certainly, long-term investing does have risks, including a hidden hazard of the possibility that a rising inflation rate will erode wealth just as easily as the levy imposed by Cyprus on bank deposits.

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Economics

Tuesday, May 07, 2013

What Chained CPI Inflation Really Means To You / Economics / Inflation

By: Money_Morning

Jason Jenkins writes: When U.S. President Obama released his 2014 budget proposal last month, many Americans who paid attention to the details needed a measurement he used - "chained CPI" - explained.

That's because President Obama used chained CPI (consumer price index) to help shave off more than $1 trillion from spending on government programs.

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Politics

Saturday, May 04, 2013

Government Crooks Responsible for the Greatest Wealth Transfer in History / Politics / Inflation

By: Bill_Bonner

Last night, six of us went out to dinner at one of the nicest restaurants in Salta. We ordered two bottles of good Laborum cabernet sauvignon. We had beefsteaks, dessert and coffee. The bill came to 1,058 Argentine pesos (about $200).

Was that a lot... or a little?

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Stock-Markets

Monday, April 29, 2013

How to Protect Your Portfolio from Inflation Without Gold / Stock-Markets / Inflation

By: DailyGainsLetter

Moe Zulfiqar writes: Inflation is when the general price level increases. As a result, purchasing power diminishes; simply stated, every dollar buys less than it did before. Central banks around the world, including the Federal Reserve, continuously try to tame inflation so that it doesn’t get out of control, usually targeting for an inflation rate of anywhere from one to three percent.

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Economics

Thursday, April 11, 2013

Why Governments Lie About Inflation? Because It Covers Up Bigger Lies / Economics / Inflation

By: Graham_Summers

More and more analysts are catching on to the fact that Government measures of inflation are phony. The US Government tells us that inflation, as measured by the CPI, is 0.8%. This is largely a work of fiction however as the actual cost of goods purchased by consumers has increased.

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Economics

Wednesday, April 03, 2013

Zombie Parasites vs. Productives, Turning Argentine / Economics / Inflation

By: Bill_Bonner

Here in Argentina, most things were closed on Monday for the Easter holidays... and are closed again today, too.

What do these Argentines think they are? French?

We wandered the streets. Here in the Palermo Soho neighborhood of Buenos Aires, where we are staying, there were thousands of people window-shopping, eating in restaurants and drinking in outdoor cafes.

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Economics

Friday, March 29, 2013

Preparing for Inflationa​ry Times / Economics / Inflation

By: Jeff_Clark

"All this money printing, massive debt, and reckless deficit spending – and we have 2% inflation? I'm beginning to believe that either the deflationists are right, or the Fed's interventions are working." – Anonymous Casey Research reader

The CPI, in our view, does not accurately measure inflation, which accounts for some of the discrepancy our reader is pointing out. However, the proper definition of inflation is "an increase in the quantity of money," which we've had in spades. We've not experienced the concomitant increase in prices, which is what we're addressing in this article.

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Economics

Friday, March 29, 2013

The Real U.S. Inflation Rate and What to Do About It / Economics / Inflation

By: Don_Miller

A little over a month ago we did a quick poll on what our readers thought the real rate of inflation was. The idea for polling our readers came from the disconnect between the official government rate of around 1% and what some had told me they were experiencing first hand.

Thank you to everyone who participated, particularly those who shared frustrating examples of the ever-increasing cost of living. There were close to 100 pages of reader comments, and I read them all... every single word.

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Personal_Finance

Wednesday, March 27, 2013

What Does 8% Inflation Really Mean? / Personal_Finance / Inflation

By: Don_Miller

Eight percent is not good news. In my latest article I shared some reader feedback from our inflation survey, and in case you missed it, the Money Forever Reader Poll Inflation Rate is 8%. But what does that number really mean for us – seniors and savers trying to protect our buying power? It's time to read the tea leaves and find out.

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Economics

Saturday, March 23, 2013

Is The Government Lying To Us About Inflation? Yes! / Economics / Inflation

By: John_Mauldin

In today’s Outside the Box, Gary D. Halbert (my old and very dear friend and former business partner of many years) reminds us about a few significant facts concerning the Consumer Price Index (CPI) that mainstream economists and the media tend to ignore. The central question is whether the CPI is really indicative of the actual inflation rate. Not likely, says Gary, since the US Bureau of Labor Statistics (BLS), which compiles the CPI, has engaged in methodological shenanigans over the past couple decades (as has been well documented by John Williams of ShadowStats, among others). The upshot of all their monkeying with the numbers is that the official rate of inflation may be two to four times lower than the actual rate (which is rather convenient if you’re a government bureaucrat trying to hold down interest costs and Social Security payments).

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Politics

Sunday, March 17, 2013

The Biggest Lie Ever Sold to the American Public / Politics / Inflation

By: Graham_Summers

The US has been lying to all of us for decades now.

We’re not talking about some kooky conspiracy theory… we’re talking about INFLATION.

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Economics

Saturday, March 16, 2013

A Long-Term Look at U.S. Inflation / Economics / Inflation

By: PhilStockWorld

Doug Short writes: The March 2012 Consumer Price Index for Urban Consumers (CPI-U) released today puts the February year-over-year inflation rate at 1.98%, about half the 3.92% average since the end of the Second World War.

For a comparison of headline inflation with core inflation, which is based on the CPI excluding food and energy, see this monthly feature.

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Economics

Thursday, March 14, 2013

China Sounds Warning Bell For What’s Coming Our Way / Economics / Inflation

By: Graham_Summers

Let’s wind the clock back to 2008.

The world was thought to be ending. Lehman went bust. Markets were plunging. Everyone was scared that growth was over. It was as though the global economy was grinding to a halt.

But then China’s stock market bottomed. The Chinese Government announced a massive stimulus plan to turn its economy around. And sure enough the Chinese economy took off again.

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Economics

Wednesday, March 13, 2013

Can the U.S. Learn From Argentina's Hyper Inflation Economic Chaos? / Economics / Inflation

By: John_Mauldin

(From Cafayate, Argentina) There are some who worry whether the path that Argentina has taken to monetary ruin on multiple occasions (and that it seems intent on taking again) is one that the US may also find itself on. That worry has crossed my mind a few times, I must confess. Today we will look at Argentina more in depth. From a monetary perspective, it deserves attention. And once again there will be opportunity.

Let me jump right to the conclusion: Just as Spain is not Greece, because each chose a unique route to economic malaise, the US is not Argentina. We are perfectly capable of avoiding Argentina’s problems while cooking up ones that are all our own. But there are some worrisome and potentially instructive issues in Argentina.

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Economics

Monday, March 11, 2013

The Relationship Between Money and Prices / Economics / Inflation

By: Alasdair_Macleod

Money printing The quantity theory of money and its accompanying equation of exchange are generally accepted as defining the relationship between money and prices. The equation has been expressed a number of ways, always including “velocity of circulation”, which is a variable essential to balance the equation.

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Stock-Markets

Wednesday, March 06, 2013

First Record Dow High, Then Record Gas And Grocery Prices / Stock-Markets / Inflation

By: Jeff_Berwick

Gary Gibson writes: Ben Bernanke must have been smirking and nodding smugly all day yesterday. The Dow hit an all-time high at 14,286 and closed at 14,253.77. What's even more impressive is that this is double where the Dow stood just four years ago. And it only took five and a half years and previously unmatched amounts of new money creation to do it.

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Economics

Wednesday, March 06, 2013

An Infinite Amount of Money, Et Tu, Italy? / Economics / Inflation

By: John_Mauldin

The three major blocs of the developed world are careening toward a debt-fueled denouement that will play out over years rather than in a single moment. And contrary to some opinion, there is no certain ending. There are multiple paths still available to Europe and especially the US, though admittedly none of them are bright and carefree. There are very few paths available to Japan, as they have skipped too far down the yellow brick road of debt. None of Japan’s remaining paths have good endings. In the US, even as numerous voices declaim on the crisis that awaits if we don’t act, there is seemingly no collective will to actually do anything as yet. Perhaps it will take… a crisis. In Europe, the peripheral countries can already be said to be in crisis.

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Stock-Markets

Tuesday, March 05, 2013

The Inflation Secrets Your Broker Won’t Tell You About / Stock-Markets / Inflation

By: Graham_Summers

The US Government and the US Federal Reserve downplay the threat of inflation. There are two primary reasons for this:

1)   Acknowledging higher inflation would mean both revising GDP growth much lower (last quarter’s FDP growth would have been negative 1% if you accounted for the real increase in costs of living).

2)    One of the primary arguments the Fed uses for why it can print hundreds of billions of Dollars without hurting consumers it because inflation remains “contained” or “transitory.”

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Economics

Thursday, February 28, 2013

Is Inflation the Legacy of the Federal Reserve? / Economics / Inflation

By: Mike_Shedlock

In testimony to Congress on February 27, Bernanke bragged that inflation under his and Greenspan's watch was a mere 2% a year.

Of course Bernanke ignored a housing boom and bust. He also ignored a a dotcom boon and bust, a global financial crisis, numerous bank bailouts, and a policy of "too big to fail" that is now "even bigger".

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Commodities

Monday, February 25, 2013

Out of Control U.S. Government Spending Means It's Time to Hedge Against Inflation / Commodities / Inflation

By: Money_Morning

Jeff Uscher writes: Uncontrolled government spending could force the Fed to monetize the government's debt, creating runaway inflation, former Federal Reserve Governor Frederic Mishkin warned in a report.

If these circumstances were to occur, the Fed would be unable to do much, if anything, to control inflation, Mishkin said in the report, presented at a conference at the University of Chicago Booth School of Business.

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Economics

Thursday, February 14, 2013

Why Inflation in 2013 Is Imminent / Economics / Inflation

By: Money_Morning

Jeff Uscher writes: Is a spike in the monetary base - currency in circulation plus bank reserves at the Fed - the first sign of imminent inflation?

Art Cashin, the well-respected director of floor operations at the New York Stock Exchange for UBS, recently told King World News the increase in the monetary base may well be a sign of impending inflation.

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Economics

Wednesday, January 30, 2013

Why There's No Real Inflation - Yet / Economics / Inflation

By: Money_Morning

Martin Hutchinson writes: According to Milton Friedman, "inflation is always and everywhere a monetary phenomenon."

If that is true, then you have to wonder where the heck all of the inflation is.

Every central bank in the Western world is holding interest rates down, and almost all of them are printing money like it's going out of style.

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Economics

Friday, January 18, 2013

Dallas Fed - We Don't Want Inflation To Raise Its Ugly Head / Economics / Inflation

By: Bloomberg

Dallas Federal Reserve president Richard Fisher told Bloomberg Television's Michael McKee today that the one thing everyone at the Fed agrees on is that "we don't want inflation to raise its ugly head." Fisher said that "as perhaps the most hawkish member of the Fed when it comes to inflation," he doesn't "see that prospect right now."

Fisher also said that community and regional banks need a "level playing field" and that "I do not dislike Jamie Dimon or Lloyd Blankfein. My children are friends with Lloyd Blankfein's children. They're good people. They do a good job at what they do. They're not bad people. It is just that the system is biased towards their institutions."

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Economics

Wednesday, January 16, 2013

Where Is the Inflation? / Economics / Inflation

By: Mark_Thornton

Critics of the Austrian School of economics have been throwing barbs at Austrians like Robert Murphy because there is very little inflation in the economy. Of course, these critics are speaking about the mainstream concept of the price level as measured by the Consumer Price Index (i.e., CPI).

Let us ignore the problems with the concept of the price level and all the technical problems with CPI. Let us further ignore the fact that this has little to do with the Austrian business cycle theory (ABCT), as the critics would like to suggest. The basic notion that more money, i.e., inflation, causes higher prices, i.e., price inflation, is not a uniquely Austrian view. It is a very old and commonly held view by professional economists and is presented in nearly every textbook that I have examined.

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Economics

Friday, January 11, 2013

Iran’s Lying Inflation Statistics / Economics / Inflation

By: Steve_H_Hanke

Today, the Central Bank of Iran released its inflation statistics for 2012.  Remarkably, despite all of the international notoriety surrounding Iran’s outbreak of hyperinflation in October, the Central Bank claims that Iran experienced an annual inflation rate of only 27.4%.

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Politics

Friday, January 11, 2013

Keynesian Inflation Propaganda Exposed / Politics / Inflation

By: Peter_Schiff

Economists who hold the popular view that expanding the money supply will provide the best medicine for our ailing economy dismiss the inflationary concerns of monetary hawks, like me, by pointing to the supposedly low inflation that has occurred during the current period of rampant Fed activism. In a recent blog post aimed specifically at me, Paul Krugman noted that the sub 2.5% increases in the Consumer Price Index (CPI) over the past few years are all that is needed to prove me wrong. In fact, Krugman and others have even suggested that the CPI itself overstates inflation and that the Fed would be better able to help the economy if less strict methodologies were used. However, there is plenty of evidence to suggest that the CPI is essentially meaningless as it woefully under reports rising prices.

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Economics

Friday, January 04, 2013

Investor Profit from the Inflation Deflation Reality 2013 / Economics / Inflation

By: DeepCaster_LLC

“There is no practical way that QE can cease here or in Euroland without a total and final collapse of the financial system.”

“The Federal Reserve Really Has No Practical Option To End QE”

Jim Sinclair, jsmineset.com, 1/3/2013

The five year chart of the CRB Index (a Broad Measure of Commodities Prices) shows three descending tops, which is suggestive of Deflation. But to conclude that Deflation is likely to be The Ruling Force in the Economy in 2013 would be a Dangerous Error.

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Interest-Rates

Friday, January 04, 2013

Market Valuation, Inflation and Treasury Yields: Clues from the Past / Interest-Rates / Inflation

By: PhilStockWorld

My monthly market valuation updates have long had the same conclusion: US stock indexes are significantly overvalued, which suggests cautious expectations on investment returns. In a “normal” market environment — one with normal business cycles, Federal Reserve policy, interest rates and inflation — current valuation levels would be a serious concern.

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Economics

Monday, December 31, 2012

Why Inflation is the Economy's Hidden Iceberg in 2013 / Economics / Inflation

By: Money_Morning

Martin Hutchinson writes: Even though Ben Bernanke's Fed has kept interest rates close to zero, inflation hasn't been a big problem since the 2008 financial crisis.

Despite what many observers have expected inflation has remained quite tame.

However in 2013, that may be about to change. One factor that might cause a surge in inflation is the fiscal cliff.

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Politics

Thursday, December 27, 2012

Why TIPS Won't Protect You from Inflation.​..and Other Government Lies / Politics / Inflation

By: Casey_Research

If the "World Snake Oil Salesperson Society" had a hall of fame, good old Uncle Sam would be a charter member. When it comes to smooth-talking folks into buying debt instruments, he's the slickest around.

And Treasury Inflation-Protected Securities (TIPS) are one of his slickest gimmicks.

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Economics

Saturday, December 22, 2012

Investor Inflation Protection, and Profit, from Political Numbers / Economics / Inflation

By: DeepCaster_LLC

As the miscreants in Washington negotiate solutions to the “fiscal-cliff” and debt-ceiling crises, trial balloons have been floated that agreement has been reached to use a new CPI measure—the C-CPI-U, which tends to understate inflation even more than the CPI-U—as way of deceptively reducing cost-of-living adjustments to Social Security, etc.  Not too surprisingly, public reaction appears to be turning increasingly negative, as the concept gets broader exposure in the popular press.

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Economics

Wednesday, December 19, 2012

Bank of England Inflation Fraud Holds Steady at CPI 2.7%, RPI 3%, and Real 3.9% / Economics / Inflation

By: Nadeem_Walayat

The mainstream press played its part in perpetuating the Government's debt / money printing arm's (Bank of England) continuing inflation fraud with matter of fact coverage of today's CPI inflation rate holding steady at 2.7%. The reality is that the Inflation fraud is at the very core of why the general population is continually forced to work ever harder and to accumulate ever greater amounts of debt (slavery) all to just stand still in terms of being able to cope with the real cost of living increases that are NOT reflected by official CPI.

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Economics

Saturday, December 15, 2012

What Inflation Means For You: Inside the Consumer Price Index CPI / Economics / Inflation

By: PhilStockWorld

Courtesy of Doug Short. The Fed justified a previous round of quantitative easing “to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate” (full text). In effect, the Fed has been trying to increase inflation, operating at the macro level. But what does an increase in inflation mean at the micro level — specifically to your household?

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Commodities

Friday, December 14, 2012

Inflation Targeting is Dead, Long Live Inflation! / Commodities / Inflation

By: Adrian_Ash

The Fed actually thinks it can drive 315 million souls through a 0.2% gap in its forecasts...

REMEMBER INFLATION? Central bankers do – and they want to get rid of it, writes Adrian Ash.

Not in the way they used to get rid of it. Back then they would raise interest rates to curb debt-fuelled spending. Whereas now they want to throw inflation out of their policy targets instead.

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Economics

Tuesday, November 13, 2012

UK CPI Inflation Soars Despite Bank of England Deflation Propaganda, Shocks Academic Economists / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK CPI inflation soared for October by rising to 2.7% up from 2.2% (Sept) which is set against academic economists / mainstream press expectations for a rise to just 2.3%. Whilst the more recognised inflation measure, RPI rose to 3.2% up from 2.6%, against press expectations of 2.8%.

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Economics

Friday, November 09, 2012

Obama Election Win Means Big Inflation is Coming, Investor Refuge in Gold and Silver / Economics / Inflation

By: Zeal_LLC

Diamond Rated - Best Financial Markets Analysis ArticleWell, Americans voted and the winner is inflation.  Half our voting populace inexplicably decided to award a second term to Obama.  Four more years of mind-boggling record deficits and record national debt growth!  Obama’s Administration spent roughly 50% more than the government took in, which can essentially only be financed in two ways.  Borrowing from foreigners and running the printing presses.

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Economics

Wednesday, November 07, 2012

When Infinite Inflation Isn't Enough / Economics / Inflation

By: Peter_Schiff

Best Financial Markets Analysis ArticleIf no one seems to care that the Titanic is filling with water, why not drill another hole in it? That seems to be the M.O. of the Bernanke Federal Reserve. After the announcement of QE3 (also dubbed "QE Infinity") created yet another round of media chatter about a recovery, the Fed's Open Market Committee has decided to push infinity a little bit further. The latest move involves the rolling over of long-term Treasuries purchased as part of Operation Twist, thereby more than doubling QE3 to a monthly influx of $85 billion in phony money starting in December. I call it "QE3 Plus" - now with more inflation!

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Personal_Finance

Friday, November 02, 2012

Will The Inflation Monster Devour Your Savings? / Personal_Finance / Inflation

By: DeviantInvestor

Best Financial Markets Analysis ArticleInflation will destroy your savings unless you prepare. I encourage you to buy my new eBook, “Survival Investing With Gold and Silver.”

Question: Is this book simple and easy to understand?

Answer: Yes!

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Economics

Tuesday, October 30, 2012

The Virtual Economic Recovery Courtesy of Inflation / Economics / Inflation

By: Paul_Craig_Roberts

Diamond Rated - Best Financial Markets Analysis ArticleSince mid-2009 the US has been enjoying a virtual recovery courtesy of a rigged inflation measure that understates inflation. The financial Presstitutes spoon out the government’s propaganda that prices are rising less than 2%. But anyone who purchases food, fuel, medical care or anything else knows that low inflation is no more real that Saddam Hussein’s weapons of mass destruction or Gadhafi’s alleged attacks on Libyan protesters or Iran’s nuclear weapons. Everything is a lie to serve the power-brokers.

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Currencies

Wednesday, October 17, 2012

U.S. Dollar Index Disguises Global Inflation Threat / Currencies / Inflation

By: Jonathan_Kosares

Best Financial Markets Analysis ArticleWhen the U.S. Dollar Index peaked at 120.51 in January of 2002, few suspected that it was on the brink of a one-directional correction that would ultimately erase a third of its value.  In fact, in just three short years, the dollar index shed, on average, a point a month before ultimately hitting a low of 80.77 in January of 2005.  This sharp decline in the dollar index coincided with, and largely fueled, the first few years of the now decade-old bull market in gold. 

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Economics

Tuesday, October 16, 2012

Inflation: Washington is Blind to Main Street's Biggest Concern / Economics / Inflation

By: Peter_Schiff

Best Financial Markets Analysis ArticleJournalists, politicians and economists all seem to agree that the biggest economic issue currently worrying voters is unemployment. It follows then that most believe that the deciding factor in the presidential race will be the ability of each candidate to convince the public that his policies will create jobs. It seems that everyone got this memo...except the voters.

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Stock-Markets

Sunday, October 07, 2012

Why You Should Be VERY Afraid of Inflation / Stock-Markets / Inflation

By: Graham_Summers

Best Financial Markets Analysis ArticleFor the last 80 years or so, financial theory has held that inflation and deflation were mutually exclusive events. We’ve now seen that idea go up in smoke as deflation affects home prices and incomes in the US at the very same time that we experience inflation in energy and food prices courtesy of the Fed’s insane money printing.

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Stock-Markets

Wednesday, October 03, 2012

Investors Fight the Inflation Boogeyman, Protect Your Wealth from Fed Money Printing / Stock-Markets / Inflation

By: Axel_Merk

Best Financial Markets Analysis ArticleInvestors are concerned about inflation. But how can investors attempt to inflation-proof their portfolios? Buy TIPS? Short Treasury bonds? Stocks? Real Estate? Commodities? Gold? Currencies? Or should investors regard those warnings about inflation as fear mongering?

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Economics

Saturday, September 22, 2012

Inflation and Inflation Expectations Analysis / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleSince the Federal Reserve initiated its third round of quantitative easing (QE3) last week, critics have expressed concern that the policy would ultimately be inflationary. Investors also seemed to sense a higher risk in this area; gold and other commodities have rallied as portfolios seek to hedge against this outcome. In response, several Federal Reserve officials have been out defending the central bank’s action.

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Economics

Friday, September 21, 2012

Forget About QE… I’m Worried About UC / Economics / Inflation

By: Graham_Summers

Let’s just be blunt here.

Inflation is back in a big way. It’s not going to show up in the official numbers, but if you’ve paid for gas or food or healthcare recently, you’ve no doubt noticed that:

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Economics

Wednesday, September 19, 2012

Why You Should Prepare for Econcomic Catastrophe / Economics / Inflation

By: Gary_North

Diamond Rated - Best Financial Markets Analysis ArticleIt is not often that readers get a clear-cut choice between two forecasts. Most forecasts have wiggle room. Not the following.

1. The United States government will default.

2. The United States government will not default.

I hold the first position. John T. Harvey holds the second. He wrote a piece for Forbes defending his position: "It Is Impossible For The US To Default".

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Economics

Thursday, August 30, 2012

When Is Fractional-Reserve Banking Inflationary? / Economics / Inflation

By: Michael_S_Rozeff

Best Financial Markets Analysis ArticleThe takeaway here is that fractional-reserve banking is not inflationary per se. Fractional-reserve banking is inflationary when combined with central banks with unconstrained fiat money powers. The real culprit in inflation is an unconstrained central bank. Since central banks are created or enabled by governments, the real culprit in inflation is government. In turn, inflation cannot be controlled unless proper government, which really means proper law, is instituted and respected.

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Economics

Tuesday, August 14, 2012

UK CPI Inflation Rise Surprises Mainstream Press, Illustrates Olympics Lasting Debt Legacy / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleMervyn King, the Governor of the Bank of England recently forecast that UK inflation would continue falling for the rest of this year which the mainstream press and academic economists / vested interests had been busy regurgitating at length. That is until today's release of the latest Inflation data for July that showed CPI Inflation rise to 2.6% (2.4%) and RPI to 3.2% (2.8%), which led to confusion across the air-waves as illustrated by the BBC's Stephanie Flanders floundering all over the place in an attempt to explain why Inflation had risen when the script everyone had been following was for Inflation to fall towards 2%.

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Economics

Friday, July 20, 2012

The Quantum of Quantitative Easing Inflation is Coming! / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleThe City of London is Imploding as a consequence of ever escalating shockwave's mostly emanating from across the Atlantic as the United States goes into overdrive in attempts to wipe-out competition from London in terms of profiting from global financial market transactions.

First we saw the US dig out and focus on 4 year old LIBOR manipulation stories centred around the cesspit that goes by the name of Barclays Bank that looks set to devastate all of UK's biggest banks, with the UK tax payer ultimately footing the bailout bill. I have covered this story at length that illustrate that everyone knew about LIBOR manipulation but now pretend that they only found out relatively recently - more here - RBS Chaos and Barclays Libor Cesspit Prompts Slow Motion Run on British Banks

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Politics

Monday, July 16, 2012

Ron Paul: Inflation is a Monetary Phenomenon / Politics / Inflation

By: Dr_Ron_Paul

Later this month Congress will have an unprecedented opportunity to force the Federal Reserve to provide meaningful transparency to lawmakers and taxpayers. HR 459, my bill known as "Audit the Fed," is scheduled for a vote before the full Congress in July. More than 270 of my colleagues cosponsored the bill, and it has the support of congressional leadership. But its passage in the House of Representatives is only the beginning of the battle, as many Senators and the President still don't see the critical need to have a national discussion about monetary policy.

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Economics

Monday, July 16, 2012

How the Malaysian Government Manipulate the CPi to Undermine Inflation / Economics / Inflation

By: Sam_Chee_Kong

Diamond Rated - Best Financial Markets Analysis ArticleThe Consumer Price Index measures the movement of goods and services purchased for consumption over a period of time.  It is a very good measure for households to evaluate their financial position and purchasing power over time. As far as we know, folks like us knows that the prices of goods and services had risen much for the past few years and yet the government had been telling us the contrary. This is because according to their calculation based on the CPI, the basket of goods and services only goes up by 2-3% per annum. As we know all governments lies about their inflation figures. They will report inflation figures of 2-3% even though the prices of food, fuel, education, medical expenses and etc have been sky rocketing in the past few years.

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Economics

Saturday, July 14, 2012

U.S. Wholesale Price Inflation Reverses Part of Recent Decline / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Producer Price Index (PPI) of Finished Goods moved up 0.1% in June, following a string of three monthly declines. The energy price index fell 0.9% in June vs. a 4.3% decline in May. Wholesale gasoline and natural gas prices moved up in June but residential electricity costs declined and provided a large enough offset to bring down the overall finished energy price index. The 0.5% increase in food prices was one of the culprits for a gain in the headline index.

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Interest-Rates

Thursday, July 12, 2012

RBS Chaos and Barclays Libor Cesspit Prompts Slow Motion Run on British Banks / Interest-Rates / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleThe Bank of England is worried, very worried, because for the past 4 years Britain's central bank has been busy battling to prevent financial armageddon from taking place by means of stuffing every orifice of the too big to fail banks with free money courtesy of the electronic money printing presses to the tune of £375 billion to date, the consequences of which is that everyone in Britain pays the price in terms of high inflation that money printing brings to ever escalating degree as countless historic examples such as Weimar Germany and Zimbabwe illustrate where this trend ultimately leads.

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Economics

Wednesday, June 20, 2012

Europe's Solution isn't More Inflation / Economics / Inflation

By: Michael_Pento

We now live in a phony economic world where central bankers rule without check. Any hint of weakening data, which is actually a sign of reality and healing returning to the economy, is quickly met with the promise of more disastrous money printing. Last week we saw U.S. factory orders down and initial jobless claims rise. In Europe, we saw the Spanish bank bailout fall flat on its face and interest rates spike in Spain and Italy. Therefore, in predictable fashion, financial markets soared on the premise that the ECB and Fed must imminently ride to the rescue once again.

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Economics

Tuesday, June 19, 2012

BBC Reports Falling UK CPI Inflation as Good News, Misses the Inflationary Depression In Progress / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThe BBC with much fanfare has been leading its news bulletins all day with the apparent good news that the UK CPI Inflation rate had fallen in mAY to 2.8%, its lowest level for 2.5 years, with it's economics experts and members of the general public presented as painting the news as a highly positive development.

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Personal_Finance

Tuesday, June 19, 2012

UK June CPI Inflation Shows Savers’ Hardship Continues Unabated / Personal_Finance / Inflation

By: MoneyFacts

Inflation figures released today show the Consumer Prices Index (CPI) fell during May, from 3.00% to 2.8%.

To beat inflation, a basic rate taxpayer at 20% needs to find a savings account paying 3.50% per annum, while a higher rate taxpayer at 40% needs to find an account paying at least 4.70%.

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Politics

Tuesday, May 01, 2012

The Inflation Lovers’ Spat / Politics / Inflation

By: Michael_Pento

Two lovers of the notion that inflation can cure everything that ails an economy recently squared off in a battle over who adores counterfeiting the most. Paul Krugman, who probably has a statue of Al Capone at his bedside, chided Ben Bernanke in a New York Times Magazine article for his unwillingness to raise the Fed’s inflation target in order to reduce the unemployment rate. The recipient of the Nobel Prize in economics penned an article titled “Earth to Ben Bernanke” on April 24th. In it he encouraged Bernanke to embrace the idea that more money printing can save the world by writing, “Higher expected inflation would aid an economy.”

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Stock-Markets

Friday, April 20, 2012

Real Asset Investments as a Hedge Against Inflationary QE / Stock-Markets / Inflation

By: Submissions

Best Financial Markets Analysis ArticleAdam Waldman writes: Since the financial crisis and the “Great Recession” began in 2008, western  central banks have responded in a number of different ways.  The one method linking all of these central banks activities together has been the use of Quantitative Easing, or QE as it is more commonly called.

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Economics

Friday, April 20, 2012

Get Ready for 'Hot' Inflation / Economics / Inflation

By: Submissions

Best Financial Markets Analysis ArticleGregor Macdonald writes: Ideological deflationists and inflationists alike find themselves both facing the same problem. The former still carry the torch for a vicious deflationary juggernaut sure to overpower the actions of the mightiest central banks on the planet. The latter keep expecting not merely a strong inflation but a breakout of hyperinflation.

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Economics

Sunday, April 15, 2012

March U.S. CPI Inflation Points Highlights Economic Risks / Economics / Inflation

By: Tony_Pallotta

Best Financial Markets Analysis ArticleFriday's release of the March consumer price index (CPI) highlights the risk facing the US economy as we have been discussing over the past few weeks. When the US exited the 2008 recession (using exited loosely) it was not final demand from consumers that initiated growth but rather government stimulus. Debt as is the case with most recoveries is what fuels the initial leg.

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News_Letter

Sunday, April 01, 2012

UK Inflation Mega-trend Second Anniversary Despite Continuing Delusional Deflation Propaganda / News_Letter / Inflation

By: NewsLetter

The Market Oracle Newsletter

Janaury 19th, 2012 Issue #1 Vol. 6

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Politics

Monday, March 26, 2012

Bernanke, Mister In-Between is 100% Sure / Politics / Inflation

By: Fred_Sheehan

Best Financial Markets Analysis ArticleThis isn't right. This isn't even wrong" ~ Wolfgang Pauli, Cambridge University physicist, attempting to read a colleague's paper.

60 MINUTES: "Can you act quickly enough to prevent inflation from getting out of control?"

BERNANKE: "We could raise interest rates in 15 minutes if we have to. So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time. Now, that time is not now."

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Economics

Monday, March 19, 2012

Is Fiat Money Inflation a Fraud? / Economics / Inflation

By: Mario_Innecco

Best Financial Markets Analysis ArticleThe classical definition of inflation is an increase in the amount of money in circulation leading to a rise in prices of goods and services. In a fiat money system money and credit are imposed by statute on the public and controlled by the central banking cartel and not a free market for money and credit. As Felix Somary once said: “the state alone is responsible for inflation: inflation without government, or indeed against government, is impossible.”(1)

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Economics

Saturday, March 17, 2012

Gas Prices Lift Overall U.S. Consumers Price Inflation in February / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Consumer Price Index (CPI) rose 0.4% in February after a 0.2% increase in the prior month. According to the BLS, about 80% of the increase was from higher prices for gasoline. Gasoline prices shot up 6.0% in February to result in a 3.2% increase of the energy price index, despite a 3.4% drop in natural gas prices and a steady reading for electricity. From a year ago, the CPI rose 2.87%, following gains of 2.93% in January and 3.9% in September.

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Economics

Friday, March 16, 2012

Higher Energy Prices Lift U.S. Producer Price Index / Economics / Inflation

By: Asha_Bangalore

The Producer Price Index (PPI) rose 0.4% in February after a 0.1% increase in the prior month. The 1.3% gain in the energy price index was led by a 4.3% jump in gasoline prices. The food price index slipped 0.1%, marking the third consecutive monthly decline. Excluding food and energy, the core PPI advanced 0.2% during February vs. a 0.4% increase in January.

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Politics

Thursday, March 08, 2012

How the Government Lies About the Real Inflation Rate / Politics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleDavid Zeiler writes: More experts are saying what most Americans have suspected for years - the real inflation rate is much higher than the government is willing to admit.

Officially, the U.S. Bureau of Labor Statistics (BLS) says the inflation rate, or Consumer Price Index (CPI), for 2011 was 3%.

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Commodities

Friday, March 02, 2012

Consumption and Inflation Mega-trends, The Great Sharing / Commodities / Inflation

By: Richard_Mills

Best Financial Markets Analysis ArticleThe most investable trend over the next 20 years is going to be the rising price of commodities, rising prices will be caused by two factors;

  • Increasing consumption
  • Inflation
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Economics

Friday, March 02, 2012

Huge Problem With Bernanke's 2% Inflation Target Explained in Graphs / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleBen Bernanke wants prices to rise 2%. There are numerous problems with such a proposal, the first being increases in money supply sometimes lead to asset bubbles and not increases in prices of consumer goods.

Indeed the Fed completely ignored (if not encouraged) the housing bubble because home prices are not in the CPI. A housing bubble and a housing crash was the result.

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Economics

Tuesday, February 28, 2012

Mish Deflationista vs Current Stagflation Environment / Economics / Inflation

By: David_Petch

Best Financial Markets Analysis ArticleThis article deals with the current environment of stagflation we are in that will see periods of defined inflation, followed by short but intense deflation, unlike a constant "Deflationista" environment as insinuated in the writings of blogger, Mike Shedlock. A few years back he came out with an article about legendary Strategic Investor Donald Coxe (Who is an extremely captivating writer with his vast knowledge of history and amusing ways in which words are spun together), titled "Donald Coxe Jumps the Shark". Mike got the call on deflation of 2008 correct...KUDOS to Mike. However, the constant beating of drums about deflation deflation deflation is kind of like someone waiting for over 20 years for that 3rd of a 3rd of a 3rd down that just never really seems to materialize. The discovery I made back in July of 2011 that a Contracting Fibonacci Spiral nailed every major high since the 1934 low after much thought defines why the markets are behaving as they do. By completion, this article should explain why defining the present environment as deflationary is like only using one sense to describe an elephant when using the collective of all senses provides a much better answer and explanation.

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Economics

Friday, February 24, 2012

Fed Conflates Inflation with Growth / Economics / Inflation

By: Michael_Pento

It is a sad situation when everything the man in charge of our central bank professes to understand about inflation is wrong. Mr. Bernanke does not know what causes inflation, how to accurately measure inflation or the real damage inflation does to an economy. He, like most central bankers around the globe, persists in conflating inflation with growth. The sad truth is that our Federal Reserve believes growth can be engendered from creating more inflation.

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Interest-Rates

Thursday, February 23, 2012

Low Interest Rates, Economic Kill or Cure? / Interest-Rates / Inflation

By: Adrian_Ash

Best Financial Markets Analysis ArticleHold still! This might sting a little...

"TREATING serious medical conditions often has unwanted side effects," said Charles Bean, deputy governor of the Bank of England and a doctor of economics, in a speech in Glasgow on Tuesday.

"But, unpleasant as those side effects sometimes are, treatment is invariably better than the alternative. So it is with the economic medicine of low interest rates and quantitative easing."

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Economics

Tuesday, February 21, 2012

Inflation Held in Check by Fear / Economics / Inflation

By: John_Browne

History has shown us time and again that out of control money supply expansion creates inflation. In light of the trillions of synthetic dollars that have been injected into the economy by the Federal Reserve over the past five years, most observers (this one included) had expected prices to spiral upward. But in making these determinations, many of us forgot to factor in the supply side of the supply/demand equation. Inflation remains low now because of game changing events that have reduced the demand for money.

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Personal_Finance

Saturday, February 18, 2012

The Destruction of Savings by Inflation / Personal_Finance / Inflation

By: Submissions

Alasdair Macleod writes: In the past, insurance companies and pension funds have been keen to advertise the benefit of compounding arithmetic for savings. Over the last 30 or 40 years the rate has been lifted by inflation, but to understand the cost inflation brings you have to consider the whole savings cycle: not just the accumulation stage, but also annuity values in retirement. Furthermore, the historical experience of a typical working life should be compared with a theoretical sound-money alternative.

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Interest-Rates

Thursday, February 16, 2012

Investors Turn to TIPS as Warren Buffett Warns on Inflation / Interest-Rates / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleDon Miller writes: Warren Buffett last week did more than warn investors on the dangers of low interest rates and inflation.

The Oracle of Omaha also had harsh words for traditional bonds.

In a Fortune article Buffett went so far as to say, "Right now bonds should come with a warning label."

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Economics

Wednesday, February 15, 2012

I only have eyes for you. And Inflation / Economics / Inflation

By: Jan_Skoyles

You may have seen them already but some of them were so, so bad (and some pretty good) that we just had to say something about them.

Yep, we’re talking about the Fed Valentine’s.

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Politics

Tuesday, February 14, 2012

George Osborne Does Not Care About Bank of England Governor's Letter / Politics / Inflation

By: Mario_Innecco

The governor of the Bank of England is supposed to write a letter to the Chancellor of the Exchequer (U.K. Finance Minister) explaining why he has not succeeded in maintaining the annual growth in the Consumer Price Index (CPI) within a range between 1% and 3%. The point of maintaining a median CPI around 2% is to safeguard the purchasing power of the currency that Britons use. The Bank of England and H.M. Treasury are supposed to protect the currency of the realm.

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Personal_Finance

Tuesday, February 14, 2012

UK Inflation Rate Falls,Cold Snap Lifts For Savers / Personal_Finance / Inflation

By: MoneyFacts

Inflation figures released today show the Consumer Prices Index (CPI) fell during January from 4.2% to 3.6%.

To beat inflation, a basic rate taxpayer at 20% needs to find a savings account paying 4.50% per annum, while a higher rate taxpayer at 40% needs to find an account paying at least 5.99%.

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Economics

Monday, February 13, 2012

Keynesians Jump the Gun on Inflation / Economics / Inflation

By: Peter_Schiff

Advocates of government stimulus are running victory laps on recent developments that appear to vindicate their strategy. In particular, Paul Krugman compares the sluggish growth in Europe to the somewhat-less-sluggish growth in the US to prove that stimulus was more effective than austerity. Other economists are using government inflation measures to defend Fed Chairman Bernanke's easy-money policy. The only problem is, they're calling the race before the finish line is even in sight.

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Stock-Markets

Tuesday, February 07, 2012

Timing the Market: Predicting When the FED Will Act Next (Feb 12) / Stock-Markets / Inflation

By: Chris_Riley

Best Financial Markets Analysis ArticleSadly, we have reached the point where markets are largely driven by government & central bank action. Their principle policy tool is monetary easing, which is used to shoot-up markets, against a market driven backdrop of de-levering. So in order to predict what the actors are likely to do, we need to understand the political constraints & incentives that they find themselves under: the principle actors being the central bankers and their politician friends.

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Economics

Friday, February 03, 2012

What Every U.S. Investor Should Know About Inflation / Economics / Inflation

By: Tony_Caldaro

Best Financial Markets Analysis ArticleThe Department of Labor publishes the Consumer Price Index (CPI) every month to monitor the inflation rate in the US. The chart below displays the annual rate of change, month to month, of the CPI in the Greenspan/Bernanke era. As you can observe it has averaged about 2.5%.

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Economics

Wednesday, February 01, 2012

Are You Ready for Some Super Bowl Inflation? / Economics / Inflation

By: Eric_McWhinnie

January was an impressive month for the markets. The Dow Jones Industrial Average increased 3.4 percent, while the Standard & Poor’s 500 gained 4.4 percent. It was the biggest monthly gain for the major indexes since 1997. However, the real star performances in January came from gold and silver. Gold finished January at $1,737.80 per ounce, representing a remarkable 11 percent gain for the month. It was the largest monthly gain since last August, and the best start to a new year since 1980. Silver, which benefits from a safe-haven and industrial component, surged 19 percent in January, representing its largest monthly rally in nine months.

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Economics

Tuesday, January 31, 2012

Inflation is Part of the Plan / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleMartin Hutchinson writes: Forget about lost decades. Forecasts that we'll be turning Japanese couldn't be further from the truth.

Here's why.

It's simple, really. Deflation is not in the interest of anybody in power, so it's very unlikely to happen.

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Politics

Thursday, January 26, 2012

Tail Events, Isolation, New Normal Of Hyper Monetary Inflation / Politics / Inflation

By: Jim_Willie_CB

Diamond Rated - Best Financial Markets Analysis ArticleThe year 2012 has started out in strange ways. While celestial forces augur for rare tail events, the assurance of man-made events that stretch far into the extreme tail of probability are not only very likely but will be of a type to reflect the change in the global balance of financial power. The Paradigm Shift mentioned over the course of the last two to three years is at work, having moved into a higher gear. The gold is moving from the West to the East, along with the power. We will not see the process reverse in our lifetime. The sanctions set against Iran have been devised by a former global leader nation that is beset by insolvency, fraud, and lost integrity. The backfire has consolidated forces into a more fortified position against the USDollar.

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Economics

Thursday, January 19, 2012

UK Inflation Mega-trend Second Anniversary Despite Continuing Delusional Deflation Propaganda / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleUK CPI inflation ended 2011 at 4.2% (December) coming down sharply from a peak of 5.2% (September) that despite the mainstream presses continuing academic backed falling inflation / deflation risk warnings remains at more than DOUBLE the Bank of England's 2% target that continues to make a mockery of the central bank whose primary remit is supposedly price stability. CPI 3% was supposed to have been the maximum level a break above which was supposed to trigger a series of panic measures to bring inflation under control, instead of which the Bank of England has instead opted to print money that to date officially totals £275 billion of electronic money printing that the fractional reserve banking system will eventually leverage to over £1 trillion for the primary objective for the monetization of government debt as warned of now 2 years ago in the Inflation Mega-Trend Ebook (Free Download).

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Economics

Saturday, December 17, 2011

U.S. Inflation, A Hurdle for the Next Round of Quantitative Easing? / Economics / Inflation

By: Asha_Bangalore

Diamond Rated - Best Financial Markets Analysis ArticleThe Consumer Price Index (CPI) held steady in November after a 0.1% drop in October. The 1.6% drop in the energy price index and the muted 0.1% increase in food prices helped to hold down the overall gain of the CPI in November. Gasoline prices continue to decline and offset higher prices of heating oil. The core CPI, which excludes food and energy, rose 0.2% in November following gains of 0.1% in each of the prior two months. Higher prices for apparel (+0.6%) and medical care (+0.4%) show the relatively large gains in November. Shelter costs advanced 0.2% in November, matching the increase seen in October.

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Economics

Tuesday, December 06, 2011

What the Christmas Price Index is Telling U.S. Consumers About Inflation / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleKerri Shannon writes: U.S. consumers can get a glimpse of what to expect in price changes this holiday shopping season - especially if you get your gift ideas from an old song.

The PNC Christmas Price Index, released by PNC Wealth Management (NYSE: PNC) measures the total cost of presents listed in the classic tune, "The Twelve Days of Christmas." This year, the price tag for an ambitious gift-giver buying all 364 presents hit $101,119.84, a 4.4% gain over last year's index.

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Personal_Finance

Monday, December 05, 2011

The Governments Hidden $500 Billion Inflation Tax on Savings / Personal_Finance / Inflation

By: Dan_Amerman

Diamond Rated - Best Financial Markets Analysis ArticleThere is a hidden and deeply unfair "tax" that is costing US savers in excess of $500 billion per year.  Through forcing interest rates far below the rate of inflation, the government has effectively created a tax on savings that not only takes all real interest income, but quite deliberately confiscates wealth from tens of millions of savers every year - for the direct benefit of the government.

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Economics

Thursday, December 01, 2011

Ben Bernanke Beats Deflationists Into Submission With His Money Stick / Economics / Inflation

By: Jeff_Berwick

Best Financial Markets Analysis ArticleWe've got a new slogan for deflationists.  Deflationists: Wrong Since the Advent of Fiat Currency.

It's been the never-ending, battle royale of the economic world ever since the looming end to this financial system became starkly clear in 2008.  Will the western governments, almost all completely incapable of paying the gargantuan debts enabled by democracy, central banking and fiat currency, allow the system to collapse (deflation) or worm their way out of it via inflation, until we live in a hyperinflationary apocalypse?

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Economics

Wednesday, November 16, 2011

U.S. Wholesale Prices Show Moderating Trend / Economics / Inflation

By: Asha_Bangalore

The Producer Price Index (PPI) of Finished Goods fell 0.3% in October after a 0.8% jump in the prior month.  A 1.4% drop of the energy price index was responsible for about two-thirds of the decline in the wholesale price index.  The core PPI, which excludes food and energy, held steady in October after ten monthly gains.  Lower prices for cars and trucks offset price hikes of other core items. 

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Companies

Tuesday, November 15, 2011

Five Stocks To Help You Fight Food Inflation Pain / Companies / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleKerri Shannon writes: Unless you've stocked up on enough food to hold you through next year, you won't be able to avoid the effects of food inflation.

According to the U.S. consumer price index, overall food prices rose 4.7% in September from the year before. That's more than the 4.6% increase in August and 4.2% jump in July.

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Personal_Finance

Tuesday, November 15, 2011

Inflation, the Curse of Savers, Savings Accounts that Track RPI / Personal_Finance / Inflation

By: MoneyFacts

Best Financial Markets Analysis ArticleInflation figures released today show the Consumer Prices Index (CPI) fell during October from 5.2% to 5.00%.

To beat inflation, a basic rate taxpayer at 20% needs to find a savings account paying 6.25% per annum, while a higher rate taxpayer at 40% needs to find an account paying at least 8.33%.

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Stock-Markets

Tuesday, November 15, 2011

Savers Protect Your Deposits From Bankrupting Banks and Quantitative Inflation / Stock-Markets / Inflation

By: NewsLetter

The Market Oracle Newsletter

October 23rd, 2011 Issue #20 Vol. 5

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Economics

Tuesday, November 15, 2011

Bank of England's Quantitative Inflation Bankster's Paradise Inflationary Depression Economy / Economics / Inflation

By: NewsLetter

The Market Oracle Newsletter

October 15th, 2011 Issue #19 Vol. 5

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Economics

Thursday, November 10, 2011

Inflation Warning: Inflating Your Economy Means Playing with Fire / Economics / Inflation

By: Casey_Research

Best Financial Markets Analysis ArticleGoldMoney founder James Turk interviews When Money Dies author Adam Fergusson, who discusses the parallels and differences between the Weimar inflation and the situation in the US and Europe today. "I don't see how any of these [Western] economies can grow their way out of the extraordinary debts that they have."

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Economics

Thursday, October 20, 2011

U.S. Inflation Shows Signs of Moderation in September / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Consumer Price Index (CPI) moved up 0.3% in September, following gains of 0.5% and 0.5% in July and August, respectively. The core CPI, which excludes food and energy, rose only 0.05% in September after a 0.24% increase in August. The September increase is the smallest gain since March 2011 (see Chart 1). These signs of moderation in inflation are noteworthy because they allow the Fed to focus on growth in the inflation-growth debate.

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Economics

Thursday, October 20, 2011

Murder of the Savers, Killed by Inflation / Economics / Inflation

By: Adrian_Ash

Best Financial Markets Analysis ArticleSavers and pensioners! Your murderers need no revolution to storm your stately homes and palaces...

IT'S NOW 100 years since Great Britain established its welfare state. Shortly after, and as the First World War kicked off, it abandoned the free exchange of bullion for notes under the classical Gold Standard.

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Economics

Thursday, October 20, 2011

Fed’s Dual Mandate Not Workin, Inflation and Unemployment Are Rising / Economics / Inflation

By: Michael_Pento

We are all aware that the Fed has a dual mandate of stable prices and maximum employment. But what may come as a surprise to most is that they have a distinct preference in their mandates. The Federal Reserve under Ben Bernanke has a clear bias towards fulfilling the goal of maximum employment. Given the situation where unemployment is high and prices are relatively stable, the Fed has opted to pursue a policy of pursuing higher inflation in the hopes of engendering lower unemployment rates.

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Economics

Tuesday, October 18, 2011

UK Inflation Accelerates to CPI 5.2%, Bankrupt Britain's Stealth Debt Default Continues / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleUK CPI Inflation smashed through the 5% barrier by rising to 5.2% for September (4.5%), which is now approaching near triple the Bank of England's 2% target that continues to make a mockery of the central bank whose primary remit is supposedly price stability, where 3% was supposed to have been the maximum level a break above which was supposedly to trigger a series of panic measures to bring inflation under control, instead of which the Bank of England has instead opted to print money as it recently announced another £75 billion of electronic money printing that the fractional reserve banking system would eventually leverage to over £1 trillion, for the primary objective for the monetization of government debt, i.e. the same policy that the Weimar republic had been engaged in on its path towards hyperinflation. UK public debt is probably being monetized at the rate of 15% per annum with approx 30% monetized to date, only the deflation fools and the vested interest academic economists cannot or choose not to realise the highly inflationary consequences of governments monetizing their debt.

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Economics

Saturday, October 15, 2011

Bank of England's Quantitative Inflation Bankster's Paradise Inflationary Depression Economy / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleThe Bank of England recently hit the panic button again by announcing another print run of £75 billion (electronically), which is in addition to the £200 billion already printed since March 2009. The news has been accompanied by much economic propaganda across the media sphere from the Bank Governor Mervyn King and Politicians including Osbourne and Cameron to the BBC's journalists / pseudo economists virtually all in unison reading from the same script of printing £75 billion being necessary to boost the UK economy in the face of the imminent threat of Recession / Deflation.

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Interest-Rates

Friday, October 14, 2011

The Fed 8% Inflation Solution / Interest-Rates / Inflation

By: Fred_Sheehan

Best Financial Markets Analysis ArticleThe terminal stage of Dr. Frankenstein-style central banking is disgorging ridiculous claims of authority motivated by reckless efforts to retain control. One such pincer attack is the Federal Reserve's purported 2% inflation target. Behind our very eyes, this fictional mandate is being raised, all the more reason that savers need to speculate, not a welcome prospect with both inflationary and deflationary influences expanding and bound to burst.

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Economics

Wednesday, October 05, 2011

War and Inflation in US History, Not Worth a Continental / Economics / Inflation

By: Richard_Mills

Best Financial Markets Analysis ArticleInflation is caused by an increase in the money supply - the rate of inflation is determined by the quantity of goods vs. the money supply - more money chasing the same amount of, or fewer goods, causes price increases. The higher the price increases the higher the rate of inflation is said to be.

Wars cause inflation - war affects everything from international trading to labor costs to quantity of available consumer goods to product demand because governments:

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Interest-Rates

Wednesday, September 21, 2011

Fed Target Must be 5% Inflation / Interest-Rates / Inflation

By: Dr_Jeff_Lewis

The Federal Reserve may engage in what has been mocked by investors as “the twist,” a bond buying program intended to reduce long-term borrowing costs by soaking up long-dated Treasury issues.  Of course, no matter the short-term goal, the real goal is to monetize the entirety of the US debt loads.

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Economics

Monday, September 19, 2011

Another Round Of Consumer Price Increases On The Way / Economics / Inflation

By: Clif_Droke

Best Financial Markets Analysis ArticleThe ongoing economic depression has the middle class behind the proverbial eight ball. Not only has it resulted in the deflation of housing values but the stimulus efforts of the last two years have resulted in increased retail prices. This is one of the important signs that the depression has a lot longer to run, for until we see a substantial drop in consumer prices deflation's work isn't done.

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Economics

Wednesday, August 31, 2011

Monetary Tsunami Is Coming / Economics / Inflation

By: Frank_Shostak

Best Financial Markets Analysis ArticleIn his speech at Jackson Hole, Wyoming, on August 26, 2011, the Fed chairman disappointed most pundits. He did not promise another massive infusion of fake money, i.e., QE3. I suspect that a strengthening in bank lending is an important factor behind the Fed's decision to postpone the pushing of more money into the economy.

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Economics

Friday, August 19, 2011

The Fed’s Focus is on Economic Growth Not Inflation / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleOf the several economic reports published this morning, existing home sales data of July and the August factory activity report of the Philadelphia Fed take precedence over the July Consumer Price Index because inflation is likely to moderate if weak economic conditions persist in the near term.

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Economics

Thursday, August 18, 2011

U.S. Whole Sale Prices Inflation Lifted by Food and Tobacco / Economics / Inflation

By: Paul_L_Kasriel

Best Financial Markets Analysis ArticleThe Producer Price Index (PPI) of Finished Goods rose 0.2% in July after a 0.4% drop in the prior month. The 0.6% decline in energy prices provided a partial offset to higher prices of other items. Lower prices for gasoline led to the drop in the finished energy price index. An increase in prices of beef, veal, and fresh fruits led to the 0.6% jump in food prices during July, following a similar increase in the previous month. On a year-to-year basis, the finished goods price index has risen 7.2%.

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Economics

Sunday, July 17, 2011

U.S. Economy Inflation R.I.P. Deflation / Economics / Inflation

By: EconMatters

Best Financial Markets Analysis ArticleDespite a big 4.4% drop off from energy prices in June following a 1.0% fall in May, the latest BLS data showed that the Consumer Price Index (CPI) for June was still up 3.6% year-over-year.

The core CPI (less food and energy), an inflation gauge watched closely by the Federal Reserve, also increased 1.6% year-over-year, and has been steadily rising and most of the increase has come within the past six months. (See Charts Below)

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Economics

Saturday, July 16, 2011

U.S. CPI Inflation - Lower Energy Prices Account for Decline / Economics / Inflation

By: Paul_L_Kasriel

The Consumer Price Index (CPI) fell 0.2% in June vs. a 0.2% increase in the prior month. The 6.8% drop of the gasoline price index accounted for a large part of the decline in the headline number. The food price index moved up 0.2% in June, the smallest increase for the year. The core CPI, which excludes food and energy, rose 0.3% in June, matching the gain posted in May.

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Economics

Monday, July 11, 2011

Staring Down China's Inflation Dragon / Economics / Inflation

By: EconMatters

Best Financial Markets Analysis ArticleChina’s inflation jumped to its highest in three years with consumer price index (CPI) surging 6.4% year-over-year in June (See Chart Below). The spike has been fueled by escalating food prices despite that the central bank’s effort to tame inflation by pushing up the RRR (Reserve Requirement Ratio) for commercial banks six times this year, while raising interest rates five times since September, most recently on July 6.

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Economics

Monday, June 27, 2011

Inflation Asides / Economics / Inflation

By: Fred_Sheehan

A note from a reader: In 1977 I accidentally ran into a high school friend of mine who had taken an advanced degree in mathematics and statistical analysis. He was working for [Federal Reserve Chairman Arthur] Burn's Fed. He informed me that he was working on a new methodology of calculating the inflation rate. When I asked what it was based on he demurred saying it was "Classified Secret." I was truly stunned. He did imply that, when done, the new methodology would greatly reduce the reported value. Sure enough, during the Volcker Fed, the new methodology was introduced and has been modified since then to greatly reduce the reported numbers. It made the Volcker effort at controlling inflation seem much more effective than it actually was.

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Politics

Friday, June 24, 2011

Say Goodbye to Your Standard of Living, Inflating Away America's Future / Politics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleMichael Pento writes: Americans are suffering from a lack of adequate savings to fund a comfortable retirement. Our growing debt burdens virtually assure us that the lofty living standards of today will soon be nothing more than a long forgotten memory.

Those ideas are now becoming more promulgated.

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Economics

Friday, June 24, 2011

U.S. Dollar Repatriation and Inflation / Economics / Inflation

By: Jeff_Lewis

It’s starting to look like the corporate world will soon get another pass from Congress on paying its international tax bill.  Last proposed and passed in 2005, a dollar repatriation holiday would allow companies to bring dollars on overseas back to the United States with only a 5.25% tax rate.

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Politics

Friday, June 24, 2011

U.S. Inflation Sick Minds / Politics / Inflation

By: Fred_Sheehan

DOW JONES NEWSWIRES - June 22, 2011 - "Lawmakers are considering changing how the Consumer Price Index is calculated, a move that could save perhaps $220 billion and represent significant progress in the ongoing federal debt ceiling and deficit reduction talks.

"According to congressional aides familiar with the discussions, the proposal would shift how the Consumer Price Index is calculated to reflect how people tend to change spending patterns when prices increase. For example, consumers tend to drive less when gas prices increase dramatically.

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Economics

Thursday, June 23, 2011

Stealth QE3 Comes to Fruition, Soaring Inflation is Next / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleDavid Zeiler writes: U.S. Federal Reserve Chairman Ben Bernanke did what most everyone expected yesterday (Wednesday) at the culmination of the Federal Open Market Committee's (FOMC) two-day meeting - he left average Americans vulnerable to the pangs of higher prices and soaring inflation.

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Economics

Saturday, June 18, 2011

Market Assessment of Inflation Has Changed / Economics / Inflation

By: Asha_Bangalore

The core Consumer Price Index (CPI), which excludes food and energy, increased 0.3% in May from the previous month and moved up 1.5% on a year-over-year basis and which leaves the Fed less comfortable than it has been in the past few months. 

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Economics

Wednesday, June 15, 2011

U.S. Core Wholesale Prices to Consumer Prices Pass Through is Not Here Yet / Economics / Inflation

By: Asha_Bangalore

The Producer Price Index (PPI) of Finished Goods increased 0.2% in May, following larger gains in each of the past five months.  A 1.5% jump in energy prices was offset partly by a 1.4% drop in food prices during May.  The BLS indicated that energy prices accounted for a large part of the increase in the wholesale price index.  Energy prices have risen for eight straight months. 

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Economics

Tuesday, June 14, 2011

UK CPI Inflation Holds at 4.5% as Stealth Theft of Wealth and Debt Default Continues / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK CPI Inflation remained at 4.5% for the month of May at more than twice the Bank of England's 2% target that continues to make a mockery of the central bank who's primary remit is supposedly price stability, where 3% is supposed to be the maximum level a break of which was supposedly to trigger panic responses to bring inflation under control, instead of which the Bank of England has instead opted to pump out temporarily high inflation propaganda for the past 18 months. Meanwhile the more recognised RPI Inflation measure nudged higher to 5.2% which is set against average pay rises of just 2%.

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News_Letter

Monday, June 13, 2011

Bank of England's Phony Inflation Panic, Greece Bankrupt Again, Silver Crash 2011 / News_Letter / Inflation

By: NewsLetter

May 16th, 2011 Issue #10 Vol. 5

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Economics

Thursday, June 09, 2011

Different Measures of Inflation / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleConcern about imminent inflation is at the heart of criticism of the Fed's quantitative easing programs. Charts 1 and 2 depict recent trends of much tracked price gauges and the main take away from these charts is that inflation excluding food and energy are contained and higher energy prices have translated into only a less than proportionate increase in core prices.

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Personal_Finance

Wednesday, June 08, 2011

How to Shelter Your Cash From Inflation / Personal_Finance / Inflation

By: Terry_Coxon

Best Financial Markets Analysis ArticleTerry Coxon, The Casey Report writes: The high rate of inflation most of us believe is waiting not too far down the road will be an earthquake for investment markets. The likely winners (gold, silver, precious metals stocks) and the likely losers (long-term bonds and most stocks) aren’t too hard to identify. But separating the sheep from the goats is only one element for financial success in an environment of rapidly rising consumer prices.

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Economics

Friday, June 03, 2011

Inflation Expectations Reflect Slowing U.S. Economic Conditions / Economics / Inflation

By: Asha_Bangalore

Latest economic data (ISM manufacturing survey results for May, auto sales of May, factory production of April, consumer spending of April) underscore the shift in business momentum to a slower pace during the past two months.  Consistent with this change, inflation expectations have declined. 

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Economics

Saturday, May 28, 2011

UK Inflation Invisible to Government Politicians Such as Vince Cable / Economics / Inflation

By: Adrian_Ash

Best Financial Markets Analysis ArticleWhere-oh-where can all this inflation – which doesn't exist – be coming from...?

THERE'S NONE so blind as those who claim they can see.

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Economics

Wednesday, May 18, 2011

The Coming Great Inflation / Economics / Inflation

By: Michael_J_Kosares

Diamond Rated - Best Financial Markets Analysis ArticleThe table displayed immediately below is likely to surprise even our most-jaded readers. It shows the astronomical increase in cash prices for well-known food commodities over the past 12 months. With inarguable exactness, it contradicts the nearly constant prattle in the mainstream press that inflation is under control, or that it is peaking and likely to come under control sometime soon. Some items on the list have doubled -- even tripled -- in price over the past year. Others have risen at mere double-digit rates.

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Economics

Tuesday, May 17, 2011

U.S. Consumers Continue to Struggle as Inflation Accelerates / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleKerri Shannon writes: The accelerating U.S. inflation rate reached its fastest pace in two and a half years last month as consumers continue dealing with higher food and energy prices.

The consumer price index (CPI) in April rose 3.2% over the last 12 months, the biggest yearly jump since October 2008. That's up from a yearly jump of 2.7% in March and 2.1% in February. The CPI in April increased 0.4% from the previous month.

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Economics

Tuesday, May 17, 2011

U.S. Inflation Data: Actual vs. Fed’s Forecast / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleApril inflation data point to an upward trend of both the all items Consumer Price Index (CPI) and the core CPI, which excludes food and energy (see Chart 1). The data suggest that in as much as the Fed views the recent gains in energy and other commodity prices as "transitory," the level of concern could change fast if the economy gathers steam. In the three-months ended April 2011, the core CPI has risen at an annual rate of 6.2%.

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Economics

Monday, May 16, 2011

Bank of England's Phony Inflation Panic, Greece Bankrupt Again, Silver Crash 2011 / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleThe week saw the Merv (Britain's version of the Bernank) step forward and utter excuses as to why he now expects UK inflation to 'temporarily' soar above 5% this year on the official CPI measure (that significantly under reports real inflation as experienced by the general population). Mervyn King in a smoke and mirrors presentation all but blamed speculators for the surge in commodity prices with expectations that UK energy prices would surge by 15% later in the year.

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Economics

Saturday, May 14, 2011

U.S. Consumer Price Index, Dichotomy Between Overall and Core Price Inflation Persists / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Consumer Price Index (CPI) rose 0.4% in April after a 0.5% increase in March.  The CPI has posted gains between 0.4% and 0.5% for five consecutive months, putting the five month annualized change in the CPI at 5.8%.  Under other circumstances the Fed would view the recent readings of overall inflation as severely inflationary and engage in suitable monetary policy actions to prevent further increases in prices.  The present situation is different. 

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Economics

Wednesday, May 11, 2011

Inflation Fears: Real or Hysteria? / Economics / Inflation

By: Ellen_Brown

Best Financial Markets Analysis ArticleDebate continues to rage between the inflationists who say the money supply is increasing, dangerously devaluing the currency, and the deflationists who say we need more money in the economy to stimulate productivity.  The debate is not just an academic one, since the Fed’s monetary policy turns on it and so does Congressional budget policy.

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Economics

Wednesday, May 11, 2011

Inflationary Reality Always Comes After “Recovery” / Economics / Inflation

By: Dr_Jeff_Lewis

Inflation watchers should be witnessing already the reality of the inflationary cycle; companies are cutting down their product sizes, cutting corners on packaging, and most importantly, raising prices.  A few household names like Nike, McDonalds, and Walmart have indicated that it is inflation that is driving up their costs of doing business, and now they’re looking for ways to pass on the costs.

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Economics

Wednesday, May 11, 2011

U.S. Rising Inflation Pressures, as Non Oil Import Prices Also Advance / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleRhetoric from the Fed has held that recent gains of commodity prices are "transitory."  Economic data have been supportive of this stance.  Core consumer prices are yet to show worrisome readings and inflation expectations remain anchored.  Against this backdrop, new inflation reports will be tracked closely.  The Consumer Price Index will be published on May 12; import prices were published this morning. 

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Economics

Friday, May 06, 2011

The Great Myth of the Inflation Cure / Economics / Inflation

By: Douglas_French

Best Financial Markets Analysis ArticleParents probably dream of sending their kid to the University of Chicago. Next to the Ivy League or Stanford, the Chicago school is near the top of the heap. Only 27 percent of applicants are admitted. To be among the roughly 15,000 means prestige and an education to build a lifetime on. The cost for tuition and fees: $39,381. Room and board is another $12,000 or so. Add books and other stuff, and the total Chicago-school experience costs $54,290 a year.

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Stock-Markets

Thursday, May 05, 2011

Rising Stock Markets = Signs of Inflation / Stock-Markets / Inflation

By: Submissions

In 2007 or 2008, "While markets across the world have been crashing, the Zimbabwe Stock Exchange has being seeing record gains as citizens turn to equities to protect their money from the country's hyperinflation.

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Economics

Thursday, May 05, 2011

Consumer Credit Could Launch Inflationary Spiral / Economics / Inflation

By: Dr_Jeff_Lewis

Recent comments from Walmart chief executive Mike Duke have investors on high alert.  This time, though, the news spreads well beyond Walmart.

At a company event in New York, Duke reminded the crowd that retail is softening, “we’re seeing core consumers under a lot of pressure,” and later added that it was rising fuel costs, just another component of monetary inflation, that was driving the sales loss.  Of particular interest to inflation watchers should be his comments that were mostly ignored. 

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Economics

Saturday, April 30, 2011

U.S. Core Inflation Remains Contained, FOMC Policy Stance is Safe / Economics / Inflation

By: Asha_Bangalore

Personal consumption expenditures rose 0.2% in March after an upwardly revised 0.5% jump in February. A 0.4% increase in outlays of services and a 0.1% jump in purchases of durables lifted consumer spending, with a 0.3% drop in expenditures of non-durables were a partial offset. Real consumer spending is projected to advance by 3.0% during the second quarter after a 2.7% gain in the first quarter.

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Politics

Thursday, April 28, 2011

The Inflation Inferno / Politics / Inflation

By: MISES

Diamond Rated - Best Financial Markets Analysis ArticleGeorge F. Smith writes: Throughout history, governments have fought against the use of sound money. In 1912, Ludwig von Mises identified the reason for this:

The sound-money principle has two aspects. It is affirmative in approving the market's choice of a commonly-used medium of exchange. It is negative in obstructing the government's propensity to meddle with the currency system.[1]

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Economics

Wednesday, April 27, 2011

Fed Wants Even Higher Inflation / Economics / Inflation

By: Axel_Merk

Today, the Federal Reserve Open Market Committee (FOMC) announced it will continue to purchase government securities as previously announced ("QE2"), including reinvesting principal payments from its holdings.

The FOMC downgraded its economic growth forecast, acknowledged inflationary pressures have moved from commodity inflation to core inflation, yet insists inflation remains too low. The Fed considers inflationary pressures to be transitory, but monitors the evolution of inflation and inflation expectations.

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Economics

Wednesday, April 27, 2011

The Most Reliable Measure of Real Consumer Price Inflation? / Economics / Inflation

By: Bill_Bonner

Best Financial Markets Analysis ArticleWe’ve always wondered why there is so much debate about the rate of inflation. It seems like such a simple thing to track. You go in the store. You buy a box of Wheaties. You write down the price. Next month, you do the same thing. What’s so hard about that?

But what if the box is smaller next month? What if the Wheaties are twice as good? What if you can get the same enjoyment from a box of Wheatie-Puffs at half the price?

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Interest-Rates

Wednesday, April 27, 2011

Nominal Yield (minus) TIPS = Inflation Expectations / Interest-Rates / Inflation

By: Tony_Pallotta

One way to determine inflation expectations is to take the treasury or nominal yield (not inflation adjusted) and subtract the TIPS or real yield (inflation adjusted). The difference of the two is the expected inflation.

Nominal Yield (minus) TIPS = Inflation expectation

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Economics

Monday, April 25, 2011

Inflation is No Miracle Cure, Impossible to Inflation Out of this Mess / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleInquiring minds are reading The "Miracle" of Compound Inflation by John Mauldin. Here are a few paragraphs worthy of a closer look.

Albert Einstein is famously quoted as saying, "Compound interest is the eighth wonder of the world." And compounding is indeed the topic of this week's shorter than usual letter, but compounding not of interest but of inflation.

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Economics

Sunday, April 24, 2011

Deepening Economic Crisis: Inflation, Rising Interest Rates, Surge in the Price of Gold and Silver / Economics / Inflation

By: Bob_Chapman

Best Financial Markets Analysis ArticleEconomic recovery does not seem to be taking effect in spite of more massive expenditures by Congress and the Fed. The IMF says financial stability has improved, but then again their vision is almost always clouded. US tax revenues are not increasing in a meaningful way, manufacturing struggles to expand and Wall Street flourishes in a cascade of mega salaries and bonuses. In another six months the US will be three years what the government, the media and Wall Street call a deep recession. We call it an inflationary depression, which has existed for 26 months. After eight years of increasing money and credit, and the creation of a real estate bubble, the Fed has been fighting off asset destruction with ever more money and credit accompanied by debt deflation. Part of the Fed’s policy has been zero interest rates, which has helped Wall Street and banking and to a limited extent real estate, but has destroyed the purchasing power of retirees and has driven funds into speculation, which in many cases has ended in ever more losses and less buying power.

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Economics

Sunday, April 24, 2011

The 'Miracle' of Compound Inflation / Economics / Inflation

By: John_Mauldin

Best Financial Markets Analysis ArticleAlbert Einstein is famously quoted as saying, "Compound interest is the eighth wonder of the world." And compounding is indeed the topic of this week's shorter than usual letter, but compounding not of interest but of inflation. As you might expect, I am giving a great deal of thought as to how we get out of our current financial dilemma of too much debt and deficits that are far too high. While I will use US data for our illustration, the principles are the same for any country.

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Economics

Monday, April 18, 2011

Inflation Destroys Real Wages / Economics / Inflation

By: Michael_Pento

In the same vein as medieval physicians believed bloodletting would cure illness, modern snake-oil economists still perilously cling to their claim that rising wages and salaries are the cause of inflation. With my recent debates with these mainstream economists, I've heard the following: "without rising wages, where does the money come from to push prices higher?" I was tempted to respond, "where do the employers get the money to pay those higher wages?" But economists tend to get a little nasty when you make them feel stupid.

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Economics

Sunday, April 17, 2011

Inflation Versus Hyperinflation, The Crucial Difference / Economics / Inflation

By: Justice_Litle

Best Financial Markets Analysis ArticleIs it possible we will see hyperinflation in the United States? Yes, but not by the route you might think...

"Hyperinflation." You've heard the word. You may have talked about it on the golf course or at the dinner table. (Or even in the grocery store.)

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Economics

Saturday, April 16, 2011

U.S. Accelerating Inflation Mega-Trend Whilst Deflationists Continue to Reinvent a History of Worthless Deflation Forecasts / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleU.S. CPI Inflation surged higher during March by rising to 2.7% from 2.1% the month before, completely catching the mainstream financial press off guard that continues to take its cues from the Fed central bank deflation propaganda as part of its strategy for massaging the general populations inflation expectations and enabling it to print money aka Quantitative Easing, aided by academics who are paid to follow a school of thought rather than think independently and without any monetary consequences of being wrong which is then further regurgitated at length by salesmen and the BlogosFear.

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Economics

Saturday, April 16, 2011

U.S. March Consumer Price Index, Fed Finds Itself Between a Rock and a Hard Place / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Consumer Price Index (CPI) rose 0.5% in March, following a similar increase in February.  The 3.5% increase of the energy price index and the 0.8% jump in food prices made up three quarters of the overall increase of the CPI in March.  On a year-to-year basis, the CPI has risen 2.7% in March, putting the three-month annualized gain at 6.1%.  The core CPI, which excludes food and energy rose 0.1% in March, which yields a three-month annualized increase of 2.0%.  The acceleration of these inflation measures in a short time period is noteworthy (see Chart 1). 

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Economics

Friday, April 15, 2011

Energy and Car Prices Lift U.S. Wholesale Price Index in March / Economics / Inflation

By: Asha_Bangalore

The Producer Price Index (PPI) of Finished Goods rose 0.7% in March following a 1.6% gain in the prior month.  A higher energy price index (+2.6%) and a jump in prices of new light motor trucks (+0.7%) were the main drivers of the overall PPI in March.  The 5.7% increase in gasoline prices and 2.7% gain in heating oil stand out among the price gains reported in the March wholesale price report.  According to the Bureau of Labor Statistics, over 90% of the increase in the wholesale price index is attributed to the higher energy price index.  The 0.2% drop in food prices helped to trim the overall advance of wholesale prices and recorded the first decline in food prices since August 2010.

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Economics

Thursday, April 14, 2011

Fed’s Exit Doors Close: Inflationary Spiral Ahead / Economics / Inflation

By: Dr_Jeff_Lewis

The pressure for the Federal Reserve to raise interest rates to put a damper on inflation is growing strong.  This week, Reuters reported that Bill Gross’s PIMCO Total Return Fund, the largest mutual fund in the world, had reduced its US Treasury holdings to zero, and then followed the sale with a short-position, signaling to the market that holding US debt is not only risky, but also an entry into an asset class that provides a negative return when adjusted for inflation.

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Economics

Sunday, April 10, 2011

Inflation Expectations and The Transmission Mechanism / Economics / Inflation

By: John_Mauldin

Diamond Rated - Best Financial Markets Analysis ArticleTWO roads diverged in a yellow wood, And sorry I could not travel both And be one traveler, long I stood And looked down one as far as I could To where it bent in the undergrowth; Then took the other, as just as fair, And having perhaps the better claim, Because it was grassy and wanted wear; Though as for that the passing there Had worn them really about the same, And both that morning equally lay In leaves no step had trodden black. Oh, I kept the first for another day! Yet knowing how way leads on to way, I doubted if I should ever come back. I shall be telling this with a sigh Somewhere ages and ages hence: Two roads diverged in a wood, and I -- I took the one less traveled by, And that has made all the difference. - Robert Frost

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Economics

Saturday, April 09, 2011

U.S. Consumer Price Index, Medical Care Costs, and the Paul Ryan Medicare Proposal / Economics / Inflation

By: Asha_Bangalore

Historical trends of the Consumer Price Index (CPI) and the medical care components in the CPI are useful to assess some aspects of the Medicare proposal in the Paul Ryan budget.  In the past 20 years, the medical care component of CPI has consistently risen faster than the CPI, with the exception of 2008 (see Chart 1).  

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Companies

Thursday, April 07, 2011

A Crack in the Great Wall-Mart: China Inflation, Watch Out for Rising Prices / Companies / Inflation

By: Jason_Kaspar

Best Financial Markets Analysis ArticleIn a widely covered interview last Wednesday, the CEO of Wal-Mart, Bill Simon, warned that “U.S. consumers face ‘serious’ inflation in the months ahead for clothing, food and other products.” He noted: "We're seeing cost increases starting to come through at a pretty rapid rate."  Given his purview, I accept Simon’s opinion as positively disconcerting, and if inflation is to hit home in the heartland of America, it will certainly begin at Wal-Mart.

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Economics

Wednesday, April 06, 2011

Deflationists Blind to the Inflation Storm / Economics / Inflation

By: Jim_Willie_CB

Diamond Rated - Best Financial Markets Analysis ArticleMy forecast has been for a powerful Inflationary Recession to occur, a consistently laid out analysis, delivered during the last year or more in clear terms. That has been my call, and continues to be my call. The Deflationist camp is making more noises. They do not know their limitations, which are obstructed by a blind eye toward the monetary inflation. They do not understand it, so they ignore it, and attempt to encapsulate it into a convenient bottle set aside on the margin. Gonzalo Lira will be proved wrong about price inflation showing on the official Consumer Price Inflation index. So what? The prevailing price inflation will ramp past 12% easily as he also predicts. His style is wonderful, even if a mirror is a fixture at his desk. His details in argument are strong and cogent. An anger meter is a fixture at my desk.

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Stock-Markets

Wednesday, April 06, 2011

How Investors Can Avoid the Growing Inflation Threat / Stock-Markets / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleMartin Hutchinson writes: Pretty much everyone but U.S. Federal Reserve Chairman Ben S. Bernanke sees that inflation is returning: After all, even Bernanke's favorite inflation measure, the Personal Consumption Expenditure (PCE) deflator, was up 0.4% in February - which hints at an annualized inflation rate of almost 5%.

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Economics

Tuesday, April 05, 2011

Does a Weak U.S. Dollar Cause Inflation? / Economics / Inflation

By: Axel_Merk

Best Financial Markets Analysis ArticleShould investors be concerned that a weaker U.S. dollar causes inflation? The price at the gas pump should be a stark reminder that a weaker dollar may contribute to higher prices. Yet, economists tell us that food and energy inflation does not count. Why do economists have such a baffling sense of logic? Are economists really aliens in disguise, locked up in ivory towers? Let’s shed some light on the logic and why it may not merely be strange, but wrong.

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Economics

Monday, April 04, 2011

Fed Core Inflation Incompetence / Economics / Inflation

By: Michael_Pento

For years the Federal Reserve has told us that in order to detect inflation in the economy it is important to separate "signal from noise" by focusing on "core" inflation statistics, which exclude changes in food and energy prices. Because food and energy figure so prominently into consumer spending, this maneuver is not without controversy. But the Fed counters the criticism by pointing to the apparent volatility of the broader "headline" inflation figure, which includes food and energy. The Fed tells us that the danger lies in making a monetary policy mistake based on unreliable statistics. Being more stable (they tell us), the core is their preferred guide. Sounds reasonable...but it isn't.

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Economics

Monday, April 04, 2011

Is Inflation Harmless or Even Good? / Economics / Inflation

By: Robert_Murphy

Best Financial Markets Analysis ArticleAs Ron Paul's "End the Fed" movement grows, more and more Fed economists are speaking up on behalf of the central bank. In a recent post, David Andolfatto of the St. Louis Fed argues that the systematic debasement of the currency has had a negligible effect on the average American. As we'll see, Andolfatto's evidence is completely irrelevant to the question. The Fed and commercial banks have been ripping off everyone who uses dollars.

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Economics

Tuesday, March 29, 2011

The Inflation Knuckleball / Economics / Inflation

By: Michael_Pento

Best Financial Markets Analysis ArticleBy its very definition, fiat money is something created out of thin air: the word "fiat" is Latin for "let it be done" (as in, by decree). But the convenience that such a currency system offers central bankers is paid at the expense of savers.

With nothing of real or lasting value on which to anchor, the value of fiat currencies can always blow away like ashes on a windy day.

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Economics

Friday, March 25, 2011

Hidden U.S. Inflation, U.S. Consumers Adjust Spending Habits Amid Soaring Prices / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleKerri Shannon writes: U.S. consumers have watched food and fuel prices eat away at their household budgets, and now those price hikes are spreading to other products - with the worst yet to come.

New York Federal Reserve Bank President William Dudley recently got a taste of public frustration with higher prices. He spoke to a crowd in Queens, New York on March 11 to tackle a mountain of food inflation questions. Dudley told the audience that while some prices are rising, other products are cheaper - like the Apple Inc.'s (Nasdaq: AAPL) latest iPad.

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Economics

Wednesday, March 23, 2011

U.S. Inflation Expectations is Key to Change in Fed Policy / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Fed's forecast, published last month, has inflation reaching the threshold of concern only in 2012/2013 (see Table 1) based on the personal consumption expenditure price index and a little later if the core personal consumption expenditure price index, which excludes food and energy, is the preferred price measure. The recent upward trend of the Consumer Price Index (CPI), both the all items index and the core CPI has raised the level of concern.

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Economics

Tuesday, March 22, 2011

UK Inflation Shock and Awe, CPI 4.4%, RPI 5.5%, Real Hits 7.1%! / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleWhilst David Cameron burns £2 million per day by playing at being Monty in the Libyan desert to distract the British population from the unfolding inflation crisis in the UK which soared shock and awe style by rising in February from CPI 4% to 4.4%, which effectively means that the economy has lost £5 billion on the month (annual -£57 billion), whilst the value of accumulated wealth has been eroded by £12 billion (annual -£154 billion), against which the value of government debt has been eroded by £4 billion (annual -£44 billion) and total UK debt by £22 billion (annual -£242 billion), which illustrates the governments unofficial policy of stealth defaulting on debt by means of high inflation, the price for which is being paid by all workers and savers.

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Economics

Monday, March 21, 2011

Fed and Inflation / Economics / Inflation

By: Dr_Ron_Paul

Last week, the subcommittee which I chair held a hearing on monetary policy and rising prices. Whether we consider food, gasoline, or clothing, the cost of living is increasing significantly. True inflation is defined as an increase in the money supply. All other things being equal, an increase in the money supply leads to a rise in prices. Inflation's destructive effects have ruined societies from the Roman Empire to Weimar Germany to modern-day Zimbabwe.

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Economics

Sunday, March 20, 2011

Floating Dollar, Milton Friedman's Contraption / Economics / Inflation

By: Gary_North

Best Financial Markets Analysis ArticleOn March 12, David Stockman gave a lecture at the Mises Institute in Alabama. I was in attendance. It was a rousing speech, filled with funny one-liners. It reminded me of Patch Adams' listing of euphemisms for death in the hospital room of the guy with terminal cancer. It got us all laughing.

The speech had four important points. First, the Treasury-Federal Reserve bailout in October 2008 was not necessary to save the financial markets. It was necessary to save three or four finance companies that had cooked their books and were facing exposure, meaning write-downs.

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Economics

Friday, March 18, 2011

Food and Energy Send U.S. Consumer Prices Sharply Higher / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Consumer Price Index (CPI) rose 0.5% in February after posting increases of 0.4% in December and January.  Significant food price gains in the January-February months and three consecutive monthly jumps in energy prices have been the main culprits behind the recent upward trend of the CPI. The CPI has risen 2.1% from a year ago, while the 3-month annualized increase is 5.6%.

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Economics

Thursday, March 17, 2011

Is U.S. Inflation Already at 9%? / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleRising prices are hitting U.S. consumers a lot harder than the U.S. Federal Reserve - or the U.S. government - would have us believe. The government-issued consumer price index (CPI) for January showed that "core inflation" - which includes prices for all items except food and energy - was up only 1% from the same month the year before.

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Economics

Thursday, March 17, 2011

Food and Energy Prices Lift U.S. Wholesale Inflation / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Producer Price Index (PPI) of Finished Goods rose 1.6% in February following a 0.8% gain in the prior month.  A 3.9% increase in food prices and a 3.3% jump in energy prices explain a large part of the increase in the headline number.  Higher prices for natural gas (+3.2%), gasoline (+3.7%) and heating oil (+14.6%) contributed for the noticeably higher energy price index.  The February increase of food prices (+3.9%) is the largest since November 1974 (+4.2%). 

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Economics

Wednesday, March 16, 2011

Does Economic Growth Cause Inflation? / Economics / Inflation

By: Frank_Shostak

Best Financial Markets Analysis ArticleThe yearly rate of growth of personal consumer outlays jumped from 2.5 percent in August last year to 3.8 percent this January.

The growth momentum of personal income has been pushing ahead strongly since May last year.

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Economics

Saturday, March 12, 2011

Inflation and Hyperinflation in the United States / Economics / Inflation

By: John_Mauldin

Diamond Rated - Best Financial Markets Analysis ArticleA Dose of Inflation
The Characteristics of Hyperinflations
The Problems of Inflation
Hyperinflation in the United States?

Bankruptcies of governments have, on the whole, done less harm to mankind than their ability to raise loans. -- R. H. Tawney, Religion and the Rise of Capitalism, 1926

By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. -- John Maynard Keynes, Economic Consequences of Peace

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Currencies

Tuesday, March 08, 2011

Currency Risk in South America – Brazil and Argentina Inflation / Currencies / Inflation

By: David_Urban

Inflation is beginning to rear its head globally.  Demand for commodities worldwide is on the rise causing shortages and riots as countries attempt to deal with the problems associated with population growth and a rising, educated middle class.  Regime changes across the MENA region are adding additional risk factors to the equation. 

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Economics

Monday, March 07, 2011

Hidden Inflation: Rising Prices Are Hitting Consumers Harder Than the Fed Will Admit / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleKerri Shannon writes: Any U.S. consumer that goes to the grocery store or the gas station on a regular basis knows that prices are rising.

Unfortunately, those rising prices are set to soar even higher - and their effects on consumers will continue to be ignored by the U.S. Federal Reserve.

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Economics

Saturday, March 05, 2011

The Fed's Promise of Inflation Means More Unemployment... / Economics / Inflation

By: Bob_Chapman

Best Financial Markets Analysis ArticleThe Federal Reserve tells us we need inflation to overcome the overhang created by debt and its inflationary aspects. The inflation does not create jobs – it just distorts prices upward. We are told by the head of the Fed, Mr. Bernanke, that he can end inflation when he thinks it is necessary. That is not true, because if inflation ends deflation takes command and the economy collapses. There is no finely honed instrument for turning these two opposite effects on and off; thus, inflationary instruments have to be blunt and overused. That means more often than not that inflation is over implemented. This is the opposite of the Fed’s mandate of promoting price stability, full employment and in fact is used to prop up the banking system.

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Economics

Saturday, March 05, 2011

China – The 800-Pound Inflation Gorilla! / Economics / Inflation

By: Sy_Harding

Best Financial Markets Analysis ArticleWhen it comes to the growing global worries about inflation, it looks like it will be ‘As goes China so goes the world’.

China is the 2nd largest economy in the world, and rapidly gaining on the U.S. Among other statistics, it’s the world’s largest importer of copper, steel, cotton, and soybeans, and the world’s largest exporter of goods - to say nothing of being the world’s largest owner of U.S. debt.

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Commodities

Friday, February 25, 2011

Food Price Inflation Calculator / Commodities / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleMark Thornton of the Mises Institute writes, "The price of everything seems to have skyrocketed. Only housing, the dollar and inflation-adjusted income are negative."

I immediately interrupt to wittily say, "Well, housing is going down because nobody wants to buy a still-over-priced-yet-even-lower-quality house that now needs painting, a new water heater, some leaky things fixed and a new roof, especially now that inflation-adjusted incomes are negative!"

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Economics

Thursday, February 24, 2011

Inflation Is Here, and It Is Going to Get Worse / Economics / Inflation

By: Frank_Shostak

Best Financial Markets Analysis ArticleAs compared to September last year, the growth momentum of price indexes shows visible strengthening. Year on year, the rate of growth of the consumer price index (CPI) rose to 1.6 percent in January from 1.5 percent in the month before and 1.1 percent in September last year. Also the growth momentum of the consumer price index less food and energy has strengthened in recent months. The yearly rate of growth climbed to 1 percent from 0.8 percent in December and 0.6 percent in October.

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Politics

Thursday, February 24, 2011

Ben Bernanke's Counterfeiting Behind North Africa Revolutions / Politics / Inflation

By: Bill_Bonner

Best Financial Markets Analysis ArticleCereal Wars…and Zombie Wars…

Hey, how ’bout that Ben Bernanke… He’s a freedom fighter! Look what he’s done to North Africa!

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Stock-Markets

Thursday, February 24, 2011

What the Looming Inflation Tsunami Means for the U.S. Housing Market and Commodities / Stock-Markets / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleKerri Shannon writes: A few weeks ago, Money Morning Contributing Editor Martin Hutchinson warned readers about the looming inflation tsunami threatening the United States.

Easy money policies like those of the U.S. Federal Reserve and other central banks have helped raise prices in emerging markets, as well as the United States, and sent the commodities sector surging.

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Economics

Friday, February 18, 2011

Calculating the Misery of Inflation / Economics / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleI was, unfortunately, sober enough to realize that I needed to get a lot drunker if I was going to withstand the horror of reading of even more economic fallout of the Federal Reserve's disastrous decisions to create So Freaking Much Money (SFMM).

In particular, Michael Pento, in an essay in the Euro Pacific's Weekly Digest newsletter, writes, "For the year 2010, the trade gap surged 43%, which was the biggest jump in a decade, as our government's efforts to reignite consumer borrowing and spending led to a record number of imported consumer goods."

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Economics

Friday, February 18, 2011

Food and Energy Prices Major Culprits in U.S. Consumer Price Index Gains / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Consumer Price Index (CPI) rose 0.4% in January, after a similar increase in the prior month.  The difference between December and January price data is that food (+0.5%) and energy (+2.1%) and the core CPI (+0.2%), which excludes food and energy, rose in January, while higher energy prices (+4.0%) played the major role in December.  The CPI has moved up 1.63% from a year ago, which is a 48 bps increase since June 2010 (+1.05%), the recent low for the CPI (see Chart 1).  Higher food and energy prices accounted for two thirds of the increase in the overall CPI in January. 

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Interest-Rates

Thursday, February 17, 2011

The Fed is Wrong – Inflation Has Arrived! / Interest-Rates / Inflation

By: Sy_Harding

Fed Chairman Bernanke says inflation is still benign and not a concern. He’s wrong! And he’s behind the curve, dangerously so!
Inflationary pressures have been rising and recognized in many major global economies for quite some time, which has had their central banks raising interest rates and tightening monetary policies in efforts to bring rising prices under control. So far without effect, thanks to the intensity of the inflationary pressures.

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Economics

Thursday, February 17, 2011

The Fed's Policy of Creating Inflation: A Massive Wealth Transfer / Economics / Inflation

By: Prof_Rodrigue_Trembl

Best Financial Markets Analysis Article"If once [the people] become inattentive to the public affairs, you and I, and Congress and Assemblies, Judges and Governors, shall all become wolves. It seems to be the law of our general nature, in spite of individual exceptions." Thomas Jefferson (1743-1826), 3rd US President

"If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered." Thomas Jefferson (1743-1826), 3rd US President

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Commodities

Thursday, February 17, 2011

Money Flows, Where Will It Go? / Commodities / Inflation

By: Dr_Jeff_Lewis

The price of money is rising, especially as it relates to time.  With inflation fears growing and governments local and federal looking toward record deficit and financing requirements, strain is beginning to take its toll on the bond markets.  Treasuries are rising, and muni bonds, which are generally very slow in their price action, have reached peak volatility.

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Economics

Thursday, February 17, 2011

Bank of England Quarterly Inflation Propaganda Report Attempts to Mask Stagflation / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleThe Bank of England latest quarterly inflation report continued the trend of pumping out economic propaganda masquerading as forecasts so as to better manage the British populations inflation expectations and prevent a wage price spiral from taking hold by continuing the mantra of temporary factors driving inflation as each month for the past year the Bank of England MPC has danced between differing temporary factors.

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Economics

Wednesday, February 16, 2011

Inflation Fools and Central-Bank Clowns / Economics / Inflation

By: Adrian_Ash

Best Financial Markets Analysis ArticleWith interest rates impotent, more or less quantitative easing looks the only policy choice open...

YOU CAN'T BLAME the financial press for being so wrong, so often.

Every financial decision you might make today is now a speculation on what will happen to interest rates. So pretty much every story a financial journalist might write starts and ends with central-bank cant, too. Because outside the inaction of each monthly vote, central-bank policy is a mass of half-truths and bunk.

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Economics

Wednesday, February 16, 2011

The Politics of Inflation / Economics / Inflation

By: Axel_Merk

Best Financial Markets Analysis ArticleIn arguing food inflation is not the Federal Reserve’s (Fed’s) fault, Fed Chairman Bernanke points the finger at everyone but him. Just as with a lot of Bernanke’s policies, his argument may hold in an academic setting, but the real world is a bit more complicated.

Summarizing the greatest money printing experiment in monetary history, Bernanke proudly stipulates that the program has been “effective”, because:

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Economics

Wednesday, February 16, 2011

China Inflation: Getting Worse and Coming To A Wal-Mart Near You / Economics / Inflation

By: Dian_L_Chu

Best Financial Markets Analysis ArticleOn Tuesday Feb. 15, China reported its consumer prices (CPI) rose 4.9% year-over-year (yoy) in January, which came in less than expected. Economists were expecting 5.4% inflation, based on a Bloomberg survey.

However, after digesting the data, Asian markets closed mixed on that news, with China’s Shanghai Composite staying flat after a choppy trading session.

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Economics

Tuesday, February 15, 2011

U.S. Economy Flight 666, On a One Way Inflation Ticket To Zimbabwe Part2 / Economics / Inflation

By: D_Sherman_Okst

Diamond Rated - Best Financial Markets Analysis ArticlePart 1 Here: In the fine book “I.O.U.S.A.” former Comptroller General David Walker said, ”[The] fourth and most serious of all is a leadership deficit.The material I reviewed underscores Walker’s observation.

I’m a huge Paul Ryan fan. I’m impressed with his handle on our budget. I give him a tremendous amount of credit for addressing our dismal fiscal situation head on. I commend him for making it the center of his work. This is something most politicians refuse to even mention, let alone address in public.

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Interest-Rates

Tuesday, February 15, 2011

Why Increasing Bank Credit Can Only End in Catastrophe / Interest-Rates / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleI have to admit that I was stunned that Fed Credit (the magical fairy dust from which money appears out of thin air) two weeks ago went up by a huge $19 billion, which the Fed itself used to buy $18.4 billion in government debt. In one week! In One Freaking Week (OFW)!!

As Eric Fry, Editorial Director of The Daily Reckoning, puts it, "The effect of this bizarre transaction is that one branch of the government issues debt securities, while another branch of the government purchases those securities"!!!

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Economics

Tuesday, February 15, 2011

U.S. Fed Inflation Policy Means The Weak and the Slow Get Crushed / Economics / Inflation

By: Fred_Sheehan

Best Financial Markets Analysis Article"We do not now have a problem.... Inflation made here in the U.S. is very, very low" - Federal Reserve Chairman Ben S. Bernanke, February 10, 2011

"Inflation is a means by which the strong can more effectively exploit the weak.... [Inflation] introduces an element of deceit into our economic dealings.... [T]he increasing uncertainty in providing privately for the future pushes people who are seeking security toward the government." - Federal Reserve Governor Henry C. Wallich, Fordham University, Commencement Address, June 28, 1978

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Economics

Tuesday, February 15, 2011

UK Inflation CPI 4%, RPI 5.1%, Real 6.6%, Pressure Building on Wage Price Spiral / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK Inflation for January 2011 leapt to CPI 4% from 3.7%, leaving the Bank of England Governor, Mervyn King to press print on another letter full of worthless excuses as to why high Inflation is still temporary more than a year on. The facts are that the Bank of England via its policy of HIGH Inflation is destroying a lifetime of accumulated capital of savers, as interest earned on savings after tax will be lucky to be at HALF the official inflation rate, never mind the actual inflation rate that is nearer to 6.6%, all as part of the continuing programme for the transference of wealth from tax payers and savers onto the balance sheets of the bailed out banks that generate fictitious profits on the basis of which billions are paid out in bonuses.

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Economics

Tuesday, February 15, 2011

U.S. Economy Flight 666, On a One Way Inflation Ticket To Zimbabwe / Economics / Inflation

By: D_Sherman_Okst

Best Financial Markets Analysis ArticleI’ve finally had the time to thoroughly study Bernanke’s entire Press Club speech, his appearance before Representative Paul Ryan’s House Budget Committee and bulk of the recently released 2005 FOMC minutes.   

The conclusion I have drawn from all this data is that the captain of our economy, Ben Bernanke, is either an economic imbecile or a financial terrorist.  Through evil intent, or sheer stupidity, the outcome remains unchanged.  The bottom-line: He has hijacked our economy flight and changed our destination.  Bernanke is about to crash Flight 666 and all 308 million of us sitting helplessly in the passenger cabin into Zimbabwe’s airport known as Hell’s Hyperinflation Field.   

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Economics

Tuesday, February 15, 2011

Inflation Grand Theft USA – Prices Go Parabolic / Economics / Inflation

By: PhilStockWorld

Best Financial Markets Analysis ArticleTwo percent!  
That’s how much the price of EVERYTHING has gone up IN AMERICA since Christmas Day, just 6 weeks ago.  This is according to the very reliable Billion Prices Project at MIT, which collects pricing data every day from online retailers using a software that scans the underlying code in public webpages and stores the relevant price information in the database.  The daily online index is an average of individual price changes across multiple categories and retailers that provides real-time information on major inflation trends.  

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Economics

Saturday, February 12, 2011

Evidence Supports Benign Near Term U.S. Inflation Trend / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleInflation is not the headline story of 2011; albeit a few glaring monthly readings due to higher food and energy prices are possible.  On what grounds can we be sure of this claim?  First, the current readings of inflationary measures are below levels consistent with price stability.  The FOMC's preference is 2.0% or slightly below 2.0% inflation readings.  As shown in Chart 1, inflation measures have posted gains below 2.0% in recent monthly reports and projected growth of the economy in 2011 suggests a benign inflationary environment. 

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Economics

Friday, February 11, 2011

QE2 Sets Off Inflation Alarms / Economics / Inflation

By: Mike_Whitney

Best Financial Markets Analysis ArticleEver since he launched the second round of his bond-buying program (QE2), Ben Bernanke has been on a roll. The S&P has gained 10 percent and the economic data has improved dramatically. Manufacturing and retail have rebounded, consumer confidence has started to brighten, and personal consumption (PCE) is on the rise. Car sales, hotel occupancy and exports are all up, too. Even the banks seem to be more eager to lend than they were just a few months ago. Only housing is still in the doldrums and the Fed chairman probably has something up his sleeve for that, too.

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Economics

Friday, February 11, 2011

Decoding the Truth About Inflation / Economics / Inflation

By: Richard_Daughty

Proving once again that investing in fixed-yield bonds when the foul, filthy Federal Reserve is creating so much money (so that their governments can deficit-spend it!) is a stupid, stupid, stupid idea because inflation will result, Agora Financial's 5-Minute Forecast newsletter reports that "Already since October, the rate on the 10-year has jumped from 2.4% to 3.6% - a 50% increase." Yikes!

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Economics

Friday, February 11, 2011

Inflation - Advanced Economies vs. Emerging Economies / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Bank of England (BOE) and The European Central Bank (ECB) have chosen to stand pat after their recent policy meetings.  However, inflation readings in the UK and the Euro area are problematic, particularly in the UK.  President Trichet of the ECB, last week, presented a less concerned stance about inflation compared with his comments in prior weeks.  Inflation in the Euro area (2.2%) is slightly higher than the target rate of 2.0%. 

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Stock-Markets

Thursday, February 10, 2011

Investors Finally Fear the Inflation Precipice / Stock-Markets / Inflation

By: Robert_Murphy

Best Financial Markets Analysis ArticleWell it's about time. The headline on Monday's CNBC article announces: "Investors Starting to Believe That Inflation Threat is Real."

For some time, I have been a proud member of the fuddy duddies who have been predicting the return of serious stagflation. Thus far, our prognostications have clearly been half-right — the "real economy" is indeed caught in a terrible rut, far worse than most of the Keynesian economists recognized even in late 2008.

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Economics

Wednesday, February 09, 2011

G7 Banana Republics ON the Money Printing Inflation Road to ZIMBABWE! / Economics / Inflation

By: Ty_Andros

Diamond Rated - Best Financial Markets Analysis ArticleThe global financial cataclysm is mushrooming with every stroke of the keyboard at a central bank, with the issuance of new debt to cover old debt, and with the illusion of creating money out of thin air.  It is all debt, nothing else, with no final settlement…. EVER.  You exchange the money you work for and save and buy a government bond; they print the money to pay you back and PRETEND you have been paid.  The situation is just as Von Mises outlined:

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Economics

Wednesday, February 09, 2011

How to Beat the Looming Inflation Tsunami / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleMartin Hutchinson writes: Inflation is coming our way. Make no mistake about it.

This insidious increase in the general level of prices is currently rattling around in the world's emerging markets - causing China and Brazil to put up interest rates and India to try and suppress it with price controls. It's beginning to appear in Britain, which had a similar crash to the United States, but where the currency has been somewhat weaker.

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Economics

Wednesday, February 09, 2011

Phony Official Inflation Statistics Produced by Dirty Rotten Scoundrels / Economics / Inflation

By: Rob_Kirby

Diamond Rated - Best Financial Markets Analysis ArticleThe purpose of this paper is to draw particular attention to the recent disparity in crude oil prices – namely the difference between two benchmarks - West Texas Intermediate [WTI] and Brent [North Sea] Crude.  Historically the price of WTI trades at a premium to lesser quality Brent North Sea Crude.  This paper lays out the case that the extreme, existing, observable price discrepancies is likely the result of engineered and arbitrary market manipulations – to be discussed below. Such arbitrary price manipulations in the oil markets impact negatively on the oil exporting economies and show favor to oil importing economies.

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Economics

Wednesday, February 09, 2011

China, Inflation and Gold, China created paper money and paper money then created Inflation / Economics / Inflation

By: Darryl_R_Schoon

Best Financial Markets Analysis ArticleRalph T. Foster in his invaluable book, Fiat Paper Money, The History and Evolution of Our Currency, writes that paper money made its first appearance in Szechwan, a remote province of China early in the 11th century.

Because of a shortage of copper coins, provincial officials had begun circulating iron coins; but the difference in value and weight between the two metals caused unexpected problems.

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Economics

Friday, February 04, 2011

The Cause and Evidence of Inflation / Economics / Inflation

By: Michael_Pento

Best Financial Markets Analysis ArticleIn a heated debate on the February 1st episode of CNBC's "The Kudlow Report", financial commentator Donald Luskin offered his "textbook" definition of inflation as "an overall rise in the general price level." I countered with the "dictionary" definition. My 1988 edition of Webster's Dictionary defines inflation as follows: "An increase in the volume of money and credit relative to available goods, resulting in a substantial and continuing rise in the general price level." [Emphasis added.] These differences are not academic and go a long way toward explaining why economists argue so vociferously.

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Economics

Wednesday, February 02, 2011

How the US Government Manipulates Inflation Data / Economics / Inflation

By: PhilStockWorld

Best Financial Markets Analysis ArticleThe PCE bothered me yesterday.

The Government told us that the PCE core price index for December was 0% - no inflation at all.  I found that to be incredible - as in not credible at all and then Tusked asked me how long the Bernank could keep justifying his rampant money printing with fake government data, to which I responded: "I had many derogatory things to say about that but I was literally so sickened by that BS that I couldn’t bring myself to comment on it so I just left it alone but it’s a very sad joke that our government can tell us that there was no inflation in December while the whole planet is falling apart, isn’t it?"  

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Economics

Tuesday, February 01, 2011

Inflation is Here to Stay / Economics / Inflation

By: Michael_Pento

In current economic analysis, inflation is largely in the eye of the beholder, and depending on how you choose to look, very different stories emerge. In the U.S., food and beverages count for just 16.4% of the CPI calculation. The Chinese apparently believe that the basic necessities of life should count for more, assigning a 33% weight to the nutritional components. These differences in measurement are partially responsible for the divergent inflation climate in both countries, and make most people believe that inflation is fickle and localized. From my perspective, inflation is a global wave that will ultimately swamp all shores.

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Economics

Tuesday, February 01, 2011

China’s Inflation Rate Nudges U.S. Retailers to Look to Other Asian Suppliers / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleKerri Shannon writes: China's inflation rate is climbing faster than expected, triggering a wave of price increases across the country and spurring foreign companies to search elsewhere for suppliers.

China's consumer price index hit 4.6% in December and 5.1% in November - it's highest level in 28 months. Annual inflation for 2010 was 3.3%, which is above the government's 3% target rate.

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Politics

Friday, January 28, 2011

Inflation to Help the Less Fortunate? / Politics / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleI almost didn't read the essay by Gary Gibson, the managing editor of the Whiskey & Gunpowder newsletter, because he was talking about Paul Krugman, whom Mr. Gibson refers to as "cheerleader of the state," and for whom I have a much, much lower opinion, probably because of my envy of his career success despite being, as far as I can tell, a complete failure in predicting the bursting messes we are in, or ever warning against them as they were building, when it was obvious to the Austrian economists all along.

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Politics

Friday, January 28, 2011

Stocks and and Price of Butter / Politics / Inflation

By: Fred_Sheehan

Best Financial Markets Analysis Article"We are poised for progress. Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again." ~ President Barack Obama, State of the Union speech, January 25, 2011

Maybe President Obama was at a loss to validate the rousing economy in his State of the Union address. Whatever the reason, this was a strange appeal to the American people. An even stranger validation of Wall Street's prowess was expressed last week by Federal Reserve Chairman Ben S. Bernanke.

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Economics

Wednesday, January 26, 2011

New World Order: Food Price Inflation; House Price Deflation / Economics / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleYou can tell by my bleary, bloodshot eyes, my rumpled appearance, my musky aromas and my overtly hostile attitude that I have been holed up in the Mogambo Armageddon Bunker (MAB), scared out of my mind about the inflation in prices that is surely going to consume us, thanks to the unholy Federal Reserve creating so incredibly much, so stupendously much, so astoundingly much, So Freaking Much Money (SFMM).

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Politics

Wednesday, January 26, 2011

Obama Fails to Address Inflation in State of the Union / Politics / Inflation

By: Submissions

Best Financial Markets Analysis ArticlePresident Obama's State of the Union address last night did not make one single mention of inflation, when it is the belief of NIA that massive price inflation (especially food inflation) will become America's top crisis by the end of this calendar year. Obama's speech also failed to mention the Federal Reserve, the Federal Funds Rate being held near 0% for over two years, and the Fed's latest round of $600 billion in quantitative easing. Unless Obama addresses our nation's fiat currency system, nothing else he says has any meaning at all.

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Economics

Wednesday, January 26, 2011

Hidden Inflation Food Prices Flying Under the Fed's Radar / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleJason Simpkins writes: Soaring food prices have been, perhaps, the most pressing global issue of the past two years – yet the U.S. Federal Reserve has taken a "hear no evil, see no evil, speak no evil" approach to the global crisis.

Instead, the Fed has dutifully maintained its focus on so called "core inflation" in the United States – even as Americans suffer the consequences of the "hidden inflation" the government refuses to account for.

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Economics

Monday, January 24, 2011

UK Inflation Forecast 2011, Imminent Spike to Above CPI 4%, RPI 6% / Economics / Inflation

By: NewsLetter

The Market Oracle Newsletter
Jan 17th, 2011 Issue #1 Vol. 5

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Economics

Sunday, January 23, 2011

China vs. Inflation: A Love-30 Match So Far / Economics / Inflation

By: Dian_L_Chu

Best Financial Markets Analysis ArticleChina released a slew of important economic data on the evening of Wednesday, Jan. 19, and markets were paying particular attention to China’s inflation. In order to put out the wild fire of inflation, China's central bank raised interest rates twice, and increased the reserve ratio for lenders four times in the span of just last two months.

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Economics

Thursday, January 20, 2011

China's Inflation Problem Looms Large / Economics / Inflation

By: Peter_Schiff

The global economy has become so unbalanced that even government ministers who would normally have trouble explaining supply or demand clearly recognize that something has to give. To a very large extent the distortions are caused by China's long-standing policy of pegging its currency, the yuan, to the U.S. dollar. But as China's economy gains strength, and the American economy weakens, the cost and difficulty of maintaining the peg become ever greater, and eventually outweigh the benefits that the policy supposedly delivers to China. In the first few weeks of 2011 fresh evidence has arisen that shows just how difficult it has become for Beijing.

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Economics

Wednesday, January 19, 2011

Protect Your Wealth from Central Bank Lies on Inflation / Economics / Inflation

By: Claus_Vogt

Best Financial Markets Analysis ArticleIf you believe what central banks say and you plan your investments accordingly, you could be in for some big surprises.

Consider, for example, some of the lies spouting forth from the U.S. Fed and the European Central Bank (ECB) …

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Economics

Wednesday, January 19, 2011

UK Inflation CPI Hits 3.7%, Higher than Zimbabwe, Britain Sleep Walking towards Wage Price Spiral / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK Inflation for December 2010 soared to CPI 3.7% from 3.3% which is set against academic economist expectations of just a few hours earlier of 3.3%. This now puts UK inflation Higher than that of hyperinflation prone Zimbabwe's CPI at 3.2%, thus making a mockery of long standing commentary in the press that it was ridiculous to compare Britain's inflation problems with that of Zimbabwe.

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Economics

Tuesday, January 18, 2011

The Many Euphemisms for Money Creation Inflation, Confused Language, Confused Thinking / Economics / Inflation

By: Thorsten_Polleit

Best Financial Markets Analysis ArticleAccording to the teachings of the Greek philosopher Parmenides, language illustrates human thinking (and reasoning); confused language is thus tantamount to confused thinking; confused thinking, in turn, provokes unintended acts and undesired outcomes.[1]

"Doublespeak" — a term that rose to prominence through the work of Eric Blair (1903–1950), more famously known as George Orwell — is a conspicuous form of confused language and thought. The term doublespeak was actually derived from the terms "newspeak" and "doublethink," which Orwell used in his novel Nineteen Eighty-Four, published in 1949.[2] While under suppressive Party instruction, the mind of the protagonist, Winston Smith

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Personal_Finance

Tuesday, January 18, 2011

Further Misery for Savers as Inflation Hits CPI 3.7% / Personal_Finance / Inflation

By: MoneyFacts

Inflation figures released today show the Consumer Price Index increased by 0.4% to 3.7% during December.

To beat inflation, a basic rate tax payer at 20% needs to find a savings account paying 4.63% pa, while a higher rate tax payer at 40% needs to find an account paying at least 6.17%.

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Economics

Monday, January 17, 2011

UK Inflation Forecast 2011, Imminent Spike to Above CPI 4%, RPI 6% / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleThe last UK inflation data came in at CPI 3.3% and RPI 4.7% for November 2010, with real inflation at just above 6%, this is set against a continuous mantra in the mainstream press by pseudo economists / journalists that high inflation of above 3% was always just temporary and that it would resolve in a sub 2% rate by the end of the year (2010). Now a year on the same people that had misguided their readerships for virtually the whole of 2010 into avoiding inflation protection strategies that the coalition government has proceeded to strip away during 2010 such as scrapping of the RPI linked Index Linked National Savings certificates in June 2010, and are only now warning their readership's of the consequences of persistently high inflation that looks set to continue during 2011.

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Economics

Friday, January 14, 2011

Wholesale Price Index Lifted by Higher Energy, Food and Cigarette Prices / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Producer Price Index (PPI) for Finished Goods rose 1.1% in December after a 0.8% increase in the prior month.  According to the Labor Department, about 75% of the increase in finished goods price index was from the 3.7% jump of the energy price index.  Of the energy items in this index, gasoline prices posted the largest increase.  Higher food prices (+0.8%) also made a contribution to the overall wholesale price index, a large part of this increase (75%) is traced to the 22.8% jump in prices of fresh and dry vegetables.  In 2010, the wholesale price index has risen 4.0% after a 4.3% jump in 2009 and a nearly 1.0% drop in 2008. 

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Economics

Friday, January 14, 2011

Economic Ruination from Money Creation to Price Inflation / Economics / Inflation

By: Richard_Daughty

John Rubino at Dollar Collapse.com obviously thinks, like I do, that inflation is a Terrible, Terrible Thing (TTT).

To prove it, and to simultaneously prove to my wife, kids, relatives, co-workers and neighbors that I am not the "weirdest man who ever lived" as concerns inflation, I call him up on the phone!

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Economics

Thursday, January 13, 2011

U.S. Inflation Set to Soar as the Country's Chief Export Boomerangs Back Home / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleMartin Hutchinson writes: While prices for food and energy have been rising, inflation in the United States has remained relatively subdued.

One common explanation for that phenomenon is that U.S. inflation has been "exported" to China and elsewhere through the U.S. Federal Reserve's monetary policy. And given the perennial U.S. balance of payments deficit, it's good to know the country has found something it can successfully export!

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Economics

Thursday, January 13, 2011

Rising Consumer Inflation: The New World Order By Commodity / Economics / Inflation

By: Dian_L_Chu

Best Financial Markets Analysis ArticleEver since the Great Recession, inflation has been put on the back burner, and deflation is seen as the greatest risk to the U.S. economy. Even as recent as Friday, Jan 7, Federal Reserve Chairman Bernanke told the Senate Budget Committee that low inflation/deflation was a concern, as well as unemployment (more on the jobs situation here.)

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Economics

Wednesday, January 05, 2011

Price Inflation to Pay the Debt / Economics / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleThe lights of the Mogambo Security System (MSS) glowed dimly in the gloom of the bunker as I cowered in the darkness, and there were no sounds except the thumping, thumping, thumping of my terrified heart at The World Outside (TWO), a place I consider to be a vicious, hostile environment containing not only enemies of every sort, both real and imagined, but family members who want to know if I am coming out for dinner, or to tell me that someone is on the phone for me, or that somebody is going to greedily eat the last of my treasured Double-Stuf Oreos, somehow trying to get me outside and into their clutches so that they can take all my money and ask me to sign various forms and documents.

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Personal_Finance

Monday, January 03, 2011

United States Postal Service Announces Forever Stamps / Personal_Finance / Inflation

By: Peter_Schiff

Best Financial Markets Analysis ArticleThe United States Postal Service announced this week that all future first class postage stamps sold will be the so-called "forever stamps" that have no face value but are guaranteed to cover the cost of mailing a first class letter, regardless of how high that cost may rise in the future. Currently these stamps are sold for 44 cents, but will increase in price if and when the Post Office hikes rates.

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Economics

Wednesday, December 29, 2010

Is Inflation Directly Tied to the Money Supply? / Economics / Inflation

By: Justice_Litle

Best Financial Markets Analysis ArticleSome argue that increased money supply (freshly printed dollars) automatically translates to inflation. This is not exactly true, and it’s important to understand why.

How do you define inflation? In some ways it's a slippery thing, like trying to nail Jell-O to a tree. One common definition amounts to "a general and sustained rise in the price of goods and services." Another is "a persistent decline in the purchasing power of money."

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Economics

Thursday, December 23, 2010

The Inflation Waves of 2011 / Economics / Inflation

By: John_Browne

One of the founding myths of the modern global financial system was that governments, especially of the developed democracies, could borrow endlessly without consequence. But, with sovereign debt crises erupting across the globe, it appears that the umbrella of perceived safety has gotten smaller, exposing some benighted countries, like Greece and Ireland, to severely rough weather.

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Economics

Thursday, December 16, 2010

U.S. Inflation Consumer Price Index Contains No Surprises / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe Consumer Price Index (CPI) rose 0.1% in November following a 0.2% gain in the prior month.  The CPI has risen 1.1% from a year ago compared with a 1.8% gain in the 12-month period ended November 2009.  Energy prices increased only 0.2% in November vs. a 2.6% gain in October.  The price index for natural gas (-5.7%) fell but gasoline prices (+0.7%) advanced for the fifth straight month, with November recording the smallest of these five monthly gains.  The food price index moved up 0.2% in November after a 0.1% increase in the prior month.  The important message is that the CPI continues to show a distinct decelerating trend (see Chart 1). 

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Economics

Wednesday, December 15, 2010

Fed Inflation / Economics / Inflation

By: Axel_Merk

In August, Federal Reserve (Fed) Chairman Bernanke stated inflation was too low; in October, the Fed's Minutes lamented that the market appeared not to take Bernanke's August statements seriously enough. In our assessment, today's Fed statement of the Fed's Open Market Committee (FOMC), with an almost verbatim repetition of the previous FOMC statement, screams: "markets: trust us, we mean what we say."

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Economics

Tuesday, December 14, 2010

Bank of England's Inflation Targeting Mandate is Bankrupt as CPI Rises to 3.3% / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK Inflation for November rose once more to hit 3.3% form 3.2% which makes a mockery of the Bank of England's primary objective of targeting CPI inflation at 2%, instead of which UK inflation has been above 3% for virtually the whole of 2010. Not far behind the bankrupt Bank of England's temporary high inflation mantra is the mainstream press and major institutions and so called think tanks that have lapped up the Bank of England's Deflation threat propaganda and sleep walked their readers into high inflation disaster as inflation protection props have been pulled away one by one (NS&I RPI Indexed Certificates).

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Economics

Sunday, December 12, 2010

Russia's Central Bank Concerned About Price Inflation Tsunami / Economics / Inflation

By: Pravda

Sergey Ignatyev, the head of the Russian Central Bank, did not exclude a possibility to raise the official bank rate next year to curb inflation. Ignatyev forecast the growth of crediting and the economy in 2011 by 20 and 5 percent respectively.

In November, the board of directors of the Central Bank (CB) decided to preserve the level of the official bank rate and interest rates on CB operations. The official bank rate was preserved on the level of 7.75 percent per annum on June 1, 2010.

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Economics

Thursday, December 09, 2010

Wealth Confiscation Through Inflation / Economics / Inflation

By: Mike_Hewitt

Best Financial Markets Analysis ArticleA monologue on currency devaluation through the process of inflation.

Greetings, I would like to talk about a subject of which I believe to be of great importance. It is to do with the devaluation of our currency.

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Economics

Tuesday, December 07, 2010

China Inflation Taking Off, Declares Price Controls on Walmart / Economics / Inflation

By: Mike_Shedlock

Diamond Rated - Best Financial Markets Analysis ArticleChina's is overheating. Consumer prices in aggregate rose at an annual rate of 4.4% as of October. Food prices are up 10.1 percent according to China Financial Daily.

Moreover, accelerating inflation is hurting profit margins in China's service sector. China's non-manufacturing PMI fell to a nine-month low in November, with new orders in consumer service industries showing outright contraction.

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Economics

Tuesday, December 07, 2010

Bernanke Is 100% Sure He Can Control Inflation / Economics / Inflation

By: James_Quinn

Best Financial Markets Analysis ArticleI don't know about you, but I'm not 100% sure about anything. The older I get, the less sure I am about everything. I question things that I was sure were true when I was 25 years old. I'm not sure I'll wake up in the morning. I'm not sure I'll survive my commute to work. That is why I was flabbergasted last night as I watched Scott Pelley interview Ben Bernanke on 60 Minutes. As a side note, boy this show has gone downhill. In the old days of real journalism, Mike Wallace would have scorched Ben Bernanke, pointing out his phenomenal ability to be wrong or clueless on every financial issue the country has faced in the last 10 years. Today, Pelley under hands softball questions to Bernanke and never challenges him. It was a pathetic display of journalism.

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Economics

Monday, December 06, 2010

Gold, Keynesian Economics and Wall Street Journal Deflation Idiocy / Economics / Inflation

By: Howard_Katz

Best Financial Markets Analysis ArticleFriday’s Wall Street Journal was full of “optimistic” news for the U.S. economy.  It reported:

  “Retailers’ reports of robust November sales offered more evidence that the lackluster U.S. economy may finally be gaining momentum, despite stubbornly high unemployment.

  “According to 27 retailers tracked by Thomson Reuters, sales at stores open a year or more rose 6% last month, sharply exceeding a year-earlier gain of just 0.5%.  Online retailing also showed sizable gains.”

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Economics

Friday, November 26, 2010

The Best Way To Play U.S. Sleeper Inflation / Economics / Inflation

By: Sean_Brodrick

Best Financial Markets Analysis ArticleLike gasoline seeping across a floor, inflation is slowly spreading across the globe, waiting to ignite. When it finally combusts, the move higher in prices could be explosive. Yet many U.S. citizens are going to be caught totally unaware because prices — for now — are generally flat and even falling.

This has opportunity written all over it. I’ll get to that in a bit. First, some facts on how the signs of deflation are around us:

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Economics

Friday, November 26, 2010

BLS Makes Sure there is No U.S. Food Inflation / Economics / Inflation

By: Fred_Sheehan

Best Financial Markets Analysis Article"Moreover, inflation has been declining and is currently quite low, with measures of underlying inflation running close to 1 percent....In this environment, the Federal Open Market Committee (FOMC) judged that additional monetary policy accommodation was needed to support the economic recovery and help ensure that inflation, over time, is at desired levels." -Federal Reserve Chairman Ben S. Bernanke, Sixth European Central Bank, Central Banking Conference; Frankfurt, Germany; November 19, 2010

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Commodities

Tuesday, November 23, 2010

Commodity Price Inflation, What is Likely Impact in the United States? / Commodities / Inflation

By: Asha_Bangalore

Diamond Rated - Best Financial Markets Analysis ArticleThe S&P GSCI commodity index has moved up 11.3% from a year ago on November 19, 2010 (see Chart 1).  The trade weighted dollar declined 1.2% from a year ago as of November 12, 2010.  The immediate inference is that the extent of gains in the commodity price index is larger than the decline of the dollar.  By implication, commodity price gains reflect more than the depreciation of the greenback.  

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Economics

Saturday, November 20, 2010

Is Inflation Lurking Around the Corner? / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleThe potential inflationary impact of the second round of quantitative easing, QE2, is at the top of the list of charges critics have complied against the Fed.  Let us look at the current evidence on inflation, inflation expectations, and the Fed's tool kit to fight inflation to conclude if the fear of inflation is credible.

Starting with the Consumer Price Index (CPI), the October CPI rose 0.2% and the core CPI, which excludes food and energy, held steady.  The year-to-year change of both price measures shows a decelerating trend since the early part of the year (see chart 2).

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Economics

Thursday, November 18, 2010

U.S. Inflation Remains Contained, In Contrast to Fed’s Preference / Economics / Inflation

By: Asha_Bangalore

The Consumer Price Index (CPI) moved up 0.2% in October, after a 0.1% gain in the prior month.  The year-to-year change is 1.2%, with the CPI trending down after a 2.7% increase in December.  During the July-October period, energy prices have lifted the overall CPI.  In October, higher gasoline prices (+4.6%) were responsible for nearly 90% of the increase in the CPI.  The CPI excluding energy held steady in October after a similar reading in the prior month.  Food prices inched up 0.1% in October, putting the year-to-year gain at 1.4%. 

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Economics

Tuesday, November 16, 2010

Quantittaive Easing Ignites Real Price Inflation / Economics / Inflation

By: Q1_Publishing

Best Financial Markets Analysis ArticleThe Federal Reserve’s moves are backfiring.

The Fed’s recent announcement that it’s going to keep the free money spigot flowing for at least another six months was the last straw.

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Economics

Monday, November 15, 2010

Bank of England Inflation Propaganda Suggests Invisible Depression, Bankrupting Ireland Seeks Bailout / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleThe Bank of England released its latest quarterly inflation report that shows that after a near year of temporary CPI Inflation mantra at above 3%, Mervyn King, the Bank Governor now expects CPI to spike to 3.5% during 2011 before falling back to below its 2% target and therefore implying that the real threat that the press and population should concern themselves with is DEFLATION.

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News_Letter

Monday, November 15, 2010

Fed Inflationary Money Printing Propels Stocks 'Stealth' Bull Market to New High / News_Letter / Inflation

By: NewsLetter

The Market Oracle Newsletter
Nov 8th, 2010 Issue #59 Vol. 4

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Economics

Tuesday, November 09, 2010

Fed Pushes U.S. Economy into an Inflationary Death Spiral / Economics / Inflation

By: Michael_Pento

Best Financial Markets Analysis ArticleIt seems the Fed has given up on the idea that the country can build a viable and stable economy through the conventional means. Instead, our central bank has resorted to once again growing GDP and increasing employment by the creation of asset bubbles. This is a dangerous game that no one, least of all the Fed, knows how to play.

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Economics

Monday, November 08, 2010

How the Government Lies About Low CPI Inflation, Krugman Deflation Propaganda / Economics / Inflation

By: Submissions

Best Financial Markets Analysis ArticleRobert Wenzel writes: With commodity prices soaring, Paul Krugman is in a trap with his deflation call, so he has decided to turn to Richard "I am not a crook" Nixon to explain why price inflation is really not happening.

Krugman tells us to forget about the prices that are going up. They are too volatile, he tells us. He says that what we should focus on are tricky sticky price indexes, specifically, core CPI.

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Economics

Monday, November 08, 2010

Fed Debases the Imperial Dollar, Inflation, Stagnation and Higher Interest Rates Ahead / Economics / Inflation

By: Prof_Rodrigue_Trembl

Best Financial Markets Analysis Article"Under a paper money system, a determined government can always generate higher spending and hence positive inflation."Ben Bernanke, future Fed Chairman (in 2002)

“My thesis here is that cooperation between the monetary and fiscal authorities in Japan could help solve the problems that each policymaker faces on its own. Consider for example a tax cut for households and businesses that is explicitly coupled with incremental BOJ purchases of government debt – so that the tax cut is in effect financed by money creation. Moreover, assume that the Bank of Japan has made a commitment, by announcing a price-level target, to reflate the economy, so that much or all of the increase in the money stock is viewed as permanent.”Ben Bernanke, future Fed Chairman (in 2002)

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Commodities

Friday, November 05, 2010

Cotton Inflation Illustrates Savers and Merchants Force to Price Resources in Ever Depreciation Currencies / Commodities / Inflation

By: Adrian_Ash

Savers and merchants worldwide are being forced to price scarce resources in ever-depreciating money...

BLAME speculators, poor weather, global demand, or the Federal Reserve as you choose. Either way, sugar's up, wheat's up, and cotton's new record highs are starting to hurt Chinese textile makers.

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Economics

Friday, November 05, 2010

From QE2 To Economic Titanic, The Global Asset Inflation Surge / Economics / Inflation

By: Andrew_McKillop

Best Financial Markets Analysis ArticleBen Bernanke has cranked the U.S. Fed's printing presses one more time, with a new injection of US$ 600 billion. Market operators have responded with the only tune they know: bid up all hard asset real resource prices in the Commodities space and, for a while, also talk up their paper cousins in the Equities space, while the US dollar wilts by the hour. Not so far forward, however, this creation of virtual value will hit the iceberg of runaway asset inflation, then vast deflation, as QE2 turns to Titanic.

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Economics

Thursday, November 04, 2010

John Locke vs. the Mercantilists and Inflationists / Economics / Inflation

By: Murray_N_Rothbard

Best Financial Markets Analysis ArticleFrom the early decades of the 17th century, English mercantilists were bitter at the superior prosperity and economic growth enjoyed by the Dutch. Observing that the rate of interest was lower in Holland than in England, they chose to leap to the causal analysis that the cause of the superior Dutch prosperity was Holland's low rate of interest, and that therefore it was the task of the English government to force the maximum rate of interest down until the interest rate was lower than in Holland.

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Economics

Friday, October 29, 2010

Loss of Dollar Purchasing Power, The True Fed Inflation Targeting Bullseye / Economics / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleWhen it comes time to put the current crop of economic blowhards and lunatics on trial for the disaster their insanely-bad advice caused, this quote from Frederic Mishkin, former Fed governor and who is directly responsible for the mess we are in, may come in handy.

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Economics

Tuesday, October 26, 2010

Inflation in the Real World / Economics / Inflation

By: Casey_Research

Jake Weber, Editor, The Casey Report writes: As is often the case, there is a big difference between what the government statistics are reporting and what’s going on in the real world. According to the most recent inflation reading published by the Bureau of Labor Statistics (BLS), consumer prices grew at an annual rate of just 1.1% in August.

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Economics

Tuesday, October 26, 2010

Should the Fed Be Concerned about Low Price Inflation? / Economics / Inflation

By: Frank_Shostak

Best Financial Markets Analysis ArticleIn its September 21 meeting, the Federal Reserve Open Market Committee expressed concern that the rate of inflation is far too low. According to the minutes some members of the FOMC have said,

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Economics

Tuesday, October 26, 2010

More U.S. Inflation Fears / Economics / Inflation

By: Dr_Ron_Paul

Inflation fears are heating up this week as Fed Chairman Ben Bernanke gave a speech in Boston on Friday, causing further frantic flight into gold by those fearful of the coming “quantitative easing” the Fed is set to deliver in November. Others who view gold as a short-term investment engaged in immediate profit-taking after Bernanke's speech.

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Economics

Friday, October 22, 2010

The U.S. Dollar is Doomed, High Inflation then Hyper-Inflation / Economics / Inflation

By: Puru_Saxena

Best Financial Markets Analysis ArticleAusterity be damned, at this rate Mr. Bernanke will go down in the history books as one of the greatest money creators ever to have walked this planet! 

Never mind sky-high deficits and a crushing debt overhang, at its most recent FOMC meeting, the Federal Reserve all but guaranteed another round of quantitative easing.

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Economics

Monday, October 18, 2010

Financial Markets Expect QE2 to Result in Higher Inflation / Economics / Inflation

By: Asha_Bangalore

Best Financial Markets Analysis ArticleInflation expectations, measured as the difference between nominal 10-year Treasury note yield and yield on the 10-year inflation protected security, has moved from a low of 1.49% on August 24, just prior to the August 27 Bernanke speech, to 2.09% as of October 15. The upward trend of inflation expectations is a vote of confidence about the success of QE2. Actual inflation, based on personal consumption expenditure price index, the Fed's preferred measure, moved up 1.47% in August on a year-to-year basis (see chart 2).

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Economics

Saturday, October 16, 2010

Reflation Trade Is Overdone, No Pickup in Inflation / Economics / Inflation

By: Bryan_Rich

Best Financial Markets Analysis ArticleIn recent weeks, the dollar has been the centerpiece of speculation surrounding the outlook for global economies, rising protectionist threats and the resurgence of global asset prices. And it all derives from Fed policy.

Bernanke’s speech yesterday and the latest statement by the FOMC clearly confirm that the Fed is DEFINITELY prepared to roll out another wave of its “quantitative easing” program — expanding the money supply with the hope of stimulating demand … igniting inflationary pressures … and ultimately creating incentives for employers to hire and invest, and for consumers to borrow and spend.

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Stock-Markets

Friday, October 15, 2010

How to Hedge Yourself from the Coming Fed Inflation Disaster / Stock-Markets / Inflation

By: DailyWealth

Best Financial Markets Analysis ArticlePorter Stansberry & Braden Copeland write: Most investors know the Federal Reserve's "easy money" policy is creating an enormous amount of new credit and new money.

And most people know this policy has created an explosion in the prices of gold and silver.

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Interest-Rates

Friday, October 15, 2010

The Fed Has Gone Insane, So I'll Just Pick Up Some More Gold and Silver / Interest-Rates / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleMy stomach was hurting, so I decided to take a little time off and soothe the old midsection with a few medicinal brews and a dose of pizza. The reason that my stomach hurt was because I had just read the stupidest economic essay, which was, unbelievably, penned by another lackluster university professor, and surprisingly printed by The Financial Times newspaper.

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Economics

Wednesday, October 13, 2010

Bank of England Prepares to Print Money Despite High Inflation at CPI 3.1% / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK Inflation for September 2010 was unchanged at CPI 3.1%, remaining stubbornly above the Bank of England's upper limit of 3% and target of 2%, despite virtually 10 months of worthless mantra from the BoE Governor that high inflation was ALWAYS just temporary and imminently expected to fall back to below the 2% target. The more recognised RPI (real inflation) measure dipped marginally from 4.7% from 4.6% and which compares against average pay rises of 2% which illustrates the squeeze that ordinary people are experiencing especially as taxes rise and Government spending is cut.

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Commodities

Tuesday, October 12, 2010

What the Texas State Fair Taught Me About Inflation / Commodities / Inflation

By: Jared_Levy

Best Financial Markets Analysis ArticleI spent my Saturday wandering around the good old Texas State Fair. I walked though the livestock area and stables full of animals of all kinds from all over Texas, and right before exiting I turned to my right to see "Millie" the Brown Swiss cow staring right at me.

My first thought, while staring back into the eyes of this cow, was inflation. Most don't typically associate cows with inflation, I know. But here's what that Brown Swiss cow and inflation have to do with one another...

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Politics

Tuesday, October 12, 2010

Will 2011 be Another Stagnant Year for Cost of Living Adjusted Social Security Checks? / Politics / Inflation

By: Nilus_Mattive

Best Financial Markets Analysis ArticleIn just a few days, the Social Security Administration is going to let retirees know how much their checks will go up next year. Or, in this case, how their checks aren’t going to go up at all.

If you were collecting this year, that’s going to sound painfully familiar because you heard the same thing last October!

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Economics

Monday, October 11, 2010

Fed Mandates Inflation Creation / Economics / Inflation

By: Peter_Schiff

Best Financial Markets Analysis ArticleMuch of the content of the latest Fed statement, released on September 21, echoes the central bank's previous post-credit crunch pronouncements: there is still too much slack in the economy, interest rates are still going to be near-zero for an "extended period," and the Fed will continue to use payments from its Treasury purchases to buy yet more Treasuries.

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Economics

Wednesday, October 06, 2010

Bernanke To Light the Fuse on Monetary Inflation Bomb / Economics / Inflation

By: Gary_North

Diamond Rated - Best Financial Markets Analysis ArticleIt is always a good idea to pay attention to new words or phrases that seem to have no connection with any previous word or phrase, and which are not self-evident. Such a phrase these days is "quantitative easing." When we hear a phrase like this, we should think through the implications of what this phrase probably means.

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Economics

Monday, October 04, 2010

Consumer Price Index (CPI), A Standard of Living Problem / Economics / Inflation

By: Chris_Riley

Best Financial Markets Analysis ArticleThe CPI is a cost of living indicator, calculated with a basket of goods that varies over time. As it is attempting to measure price changes in a typical consumption basket, it does not compare price changes across a like-for-like basket of goods over time. This has caused large under measurement of the true rate of price inflation when living standards have been falling and over measurement of price inflation when living standards have been rising. This is a major problem, as we need to measure price changes whilst holding the standard of living constant i.e. across a fixed basket of goods. But that would invalidate the CPI as a measure of change in the cost of living.

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Economics

Friday, October 01, 2010

Perpetual Deflation Causes Inflation / Economics / Inflation

By: Shelby_H_Moore

It does not amaze me that most people have not studied enough to have a very good understanding of the current macro economic environment.

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Economics

Tuesday, September 21, 2010

Inflationary Understatement / Economics / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleThe Market Oracle newsletter jumps into the inflation-deflation debate, and says, "Debt deleveraging deflation completely ignores the fact that we are NOT living in the 1930's, but in a globalised world economy that is seeing the convergence of real GDPs where the developing world is eating up the [world's] resources at a faster pace then the west is cutting back on consumption."

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Economics

Tuesday, September 14, 2010

UK CPI Inflation Stuck at 3.1% Against Bank of England's Forecast for 1.6% / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK inflation for August 2010 was unchanged at CPI 3.1%, remaining stubbornly above the Bank of England's upper limit of 3% and target of 2%, despite virtually 9 months of mantra from the Governor, Mervyn King that high inflation was ALWAYS just temporary and imminently expected to fall to below the 2% target. The more recognised RPI (real inflation) measure dipped marginally from 4.8% to 4.7% and which compares against average pay rises of 2% which illustrates the squeeze that ordinary people are experiencing especially as taxes rise and state services are cut. The academic economists that populate the mainstream press were again caught off guard as expectations were for CPI to fall to 2.8%, just as they have been caught off guard by high inflation EVERY month for the whole of 2010.

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Economics

Sunday, September 12, 2010

Inflation in China Escalates - Miracle Expansion or Bubble to Burst? / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleThe New York Times reports Inflation in China Is Rising at a Fast Pace

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Economics

Wednesday, September 01, 2010

Quantitative Easing, Money Velocity Inflationary Armageddon / Economics / Inflation

By: DeepCaster_LLC

Best Financial Markets Analysis Article“The crucial passage comes in Chapter 17 entitled "Velocity". Each big inflation -- whether the early 1920s in Germany, or the Korean and Vietnam wars in the US -- starts with a passive expansion of the quantity of money. This sits inert for a surprisingly long time. Asset prices may go up, but latent price inflation is disguised. The effect is much like lighter fuel on a camp fire before the match is struck.

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Economics

Wednesday, September 01, 2010

Inflation, Rounding Up the Culprits of Rising Prices / Economics / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleFrom Bloomberg.com we get the bad news that "Bank of England Governor Mervyn King said inflation is likely to exceed the UK government's upper 3% limit in coming months as higher sales taxes drive gains in consumer prices," which "rose 3.1% in July from a year earlier after climbing 3.2% in June."

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News_Letter

Sunday, August 29, 2010

Deflation Delusion Continues as Economies Trend Towards High Inflation / News_Letter / Inflation

By: NewsLetter

The Market Oracle Newsletter
August 26th, 2010 Issue #49 Vol. 4

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Economics

Thursday, August 26, 2010

Deflation Delusion Continues as Economies Trend Towards High Inflation / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleDelusional deflationists right from the Bank of England MPC, through to the mainstream press for well over a year have pushed the mantra of ongoing debt deleveraging deflation everywhere, everywhere that is than appears in where it counts i.e. the actual INFLATION indices, where inflation is on the rise right across the world as illustrated in the UK by the persistent failure of the Bank of England to control UK inflation that remains above the banks CPI 3% upper limit. Even Greece that really is in an depression is experiencing inflation at above 3%, whilst the US CPI continues to inflate at a more modest 1.2% as summarised below for key world economies.

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Economics

Wednesday, August 25, 2010

Inflation Follows the Economic Stimulus Boom / Economics / Inflation

By: Richard_Daughty

Peter Schiff of Euro Pacific Capital notes that the Federal Reserve, and the idiots like Paul Krugman who genuflect at the altar of Keynes, is not done with destroying the economy, but that “Bernanke and his supporters have said that their stimulus will be withdrawn as soon as the recovery takes hold in earnest.” Hahaha!

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Economics

Thursday, August 19, 2010

Tea, Tramadol and Today's Great Depression / Economics / Inflation

By: Adrian_Ash

Best Financial Markets Analysis Article"Even at home there is generally a cup of tea going – a 'nice cup of tea' – and Father, who has been out of work since 1929, is temporarily happy because he has a sure tip for the Cesarewitch..."
  - George Orwell, The Road to Wigan Pier (London, 1936)

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Economics

Tuesday, August 17, 2010

UK Inflation CPI 3.1%, RPI 4.8% for July, Bank of England Forecast Was for CPI 1.7% / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK inflation for July 2010 dipped marginally from CPI 3.2% to 3.1%, remaining stubbornly above the Bank of England's upper limit of 3% and target of 2%, despite virtually 8 months of mantra from the Governor, Mervyn King that high inflation was just temporary and imminently expected to fall to below the 2% target. The more recognised RPI measure fell from 5% to 4.8% and which compares against average pay rises of 2% which illustrates the squeeze that ordinary people are on especially as taxes rise and state services are cut. The BoE governor wrote yet another full of excuses letter to the Chancellor, George Osbourne as to why the Bank of England is failing in its primary objective of controlling inflation.

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Economics

Friday, August 13, 2010

The Real Reason for Bank of England's Worthless CPI Inflation Forecasts / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleThe Bank of England released their latest quarterly inflation report this week that again sought to revise the forecast for UK inflation to converge towards 2% in 2 years time. However one major change accompanying the forecast was that the mantra of UK inflation being above the 2% target and the 3% upper limit as only temporary has now been dropped, this after repeatedly claiming month in month out for the past 7 months that Inflation would magically fall that the academic economists and mainstream press had swallowed up until quite recently.

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Economics

Thursday, July 29, 2010

Price Stability Not a Fed Priority / Economics / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleI knew the instant that I read the article’s title, “Fed Nominees Seek Economic Boost” in The Wall Street Journal, that I was probably going to be outraged and end up screaming a fearful and angry Mogambo Howl Of Anger (MHOA).

It was, alas, a feeling of doom that soon gave way to stark fear when I saw that the accompanying photo was captioned “Fed nominees – Janet Yellen, Peter Diamond and Sarah Bloom Raskin – at a Senate hearing Thursday.”

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Economics

Monday, July 26, 2010

Inflation, The Coming Rice in Prices / Economics / Inflation

By: Howard_Katz

Best Financial Markets Analysis ArticleLast week I argued that the theory of a coming decline in prices just around the corner was a balloon full of hot air, and like all such balloons it was bound to sail into the atmosphere.  So far from this “deflation” theory being true, it is a deliberate falsehood and in fact is a very good indicator that the exact opposite will happen.

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Economics

Saturday, July 17, 2010

ShadowStats U.S. CPI Inflation Running at 4.3%, Gold $2,382, Silver $139 / Economics / Inflation

By: Jesse

ShadowStats U.S. CPI Inflation Running at 4.3%, Gold $2,382, Silver $139

Best Financial Markets Analysis ArticleSomething Weimar this way comes?

There is almost no doubt in my mind that we will see these prices for gold and silver. I am just not sure exactly how we will get there, and when. But I expect the unexpected, or at least that which is not expected by the many.

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Economics

Friday, July 16, 2010

U.S. CPI Negative 3rd Consecutive Month, Consumers Have a Selective Memory / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleAs expected, as least as I expected, the Consumer Price Index for June shows the seasonally adjusted CPI was Negative 3rd Consecutive Month.

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Economics

Wednesday, July 14, 2010

Money Disillusion, 8 Ugly Facts About U.K. Inflation / Economics / Inflation

By: Adrian_Ash

Best Financial Markets Analysis ArticleBehold the sad case of the poor British worker and saver...

PEOPLE BUY GOLD when they fear inflation ahead. But they also buy gold when inflation arrives and starts eating into their savings – which is just what it's done during the last decade.

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Economics

Tuesday, July 13, 2010

Inflation, The Runaway Train / Economics / Inflation

By: Kieran_Osborne

Best Financial Markets Analysis ArticleInflationary risks have seemingly fallen out of the mindset of many investors recently, with the European debt crisis causing many to reevaluate their outlook for global economic growth in concert with record low headline CPI numbers being released. Despite this, gold, traditionally a hedge against inflation, continues to move up in price. Is this dynamic inconsistent? We don’t think so. Of course, some of gold’s price movement may reflect its safety aspect, given renewed concerns over the long-term health of the economy, but in our opinion, inflationary concerns are very much valid and should be front and center of any investment strategy going forward.

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Economics

Tuesday, July 13, 2010

UK Inflation Falls to CPI 3.2%, Precisely inline with 2010 Forecast / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK inflation for June 2010 registered a small drop from 3.4% to 3.2%, though remaining stubbornly above the Bank of England's upper limit of 3%, thus the BoE Governor, Mervyn King will write yet another letter to repeat that the high rate of inflation is just "temporary", though when does "temporary" high inflation stop being temporary? 6 months? a year? 2 years? as the country sleep walks into stagflation with all of the consequences for wage earners and savers.

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Interest-Rates

Tuesday, July 06, 2010

Inflation Isn’t Dead, Just Sleeping, Protect Your Wealth With TIPS / Interest-Rates / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleLarry D. Spears writes: Investors are always on the lookout for hot tips. The best tips highlight investments that pack a big potential profit punch, but that haven't yet started their move.

That's just what we have for you here.

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Economics

Wednesday, June 30, 2010

Fed Credit, Inflation and the Idiots in the Middle / Economics / Inflation

By: Richard_Daughty

Best Financial Markets Analysis ArticleA whole series of alarms occurred after I got the news, although I lost the source, that "food stamp usage just soared to a new record high" of 40.2 million persons.

This number is alarming in itself because it means that the economy is so bad that more and more hungry people cannot afford to even feed themselves, sort of like teenagers, but with hopefully better manners and dietary choices.

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News_Letter

Sunday, June 20, 2010

The Inflation Mega-Trend Continues With UK CPI 3.4%, RPI 5.1% / News_Letter / Inflation

By: NewsLetter

The Market Oracle Newsletter
June 16th, 2010 Issue #36 Vol. 4

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Economics

Wednesday, June 16, 2010

The Inflation Mega-Trend Continues With UK CPI 3.4%, RPI 5.1% / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleAnother month and another release of UK inflation data at far above the Bank of England's target of 2% and above the upper limit of the Banks 1% to 3% range by reporting CPI of +3.4% for May. Thus the BoE Governor, Mervyn King will write another letter to repeat that the high rate of inflation is just "temporary", though when does "temporary" high inflation stop being temporary? 6 months? a year? 2 years? as the country sleep walks into stagflation with all of the consequences for wage earners and savers.

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Economics

Tuesday, June 15, 2010

High UK Inflation Continues to Punish Savers With Negtive Real Interest Rates / Economics / Inflation

By: MoneyFacts

Best Financial Markets Analysis ArticleInflation figures released today show that the Consumer Price Index (CPI) has fallen marginally to 3.40%, still way above the Government’s 2% target.

But a possible VAT increase in next week’s emergency Budget could stunt any longer term reductions.

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Economics

Tuesday, June 15, 2010

Inflation Corroded Copper Coins / Economics / Inflation

By: LewRockwell

Best Financial Markets Analysis ArticleRichard Daughty writes: Junior Mogambo Ranger (JMR) Phil S. sent an article from the Globe and Mail where I learned that inflation in Canada has been so persistently corrosive over the years that, like in America, "it now costs the Royal Canadian Mint more than a penny to make a penny, and because of penny 'hoarding' by Canadians, the mint has to keep making more." Hahaha! "Hoarding"? Hahahaha!

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Economics

Tuesday, June 15, 2010

Government Quest to Buy Inflation, Print Baby Print / Economics / Inflation

By: John_Mauldin

Diamond Rated - Best Financial Markets Analysis ArticleThis week I thought I would give you an Outside the Box with a more European flavor, as I am in Tuscany at the moment and on to Paris later this week and then back here for a working weekend with partners. Life is tough. :-)

Dylan Grice of Societe Generale (based in London) is fast becoming one of my favorite writers. This thought-provoking piece makes us meditate on whether central banks will print money in response to the fiscal crisis in the developed world countries. I am not certain that all central banks will print with abandon, BUT we need to think about what happens if they do.

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Economics

Sunday, June 13, 2010

Deflation? Try a Tale of Two Inflations / Economics / Inflation

By: Dian_L_Chu

Best Financial Markets Analysis ArticleThe crisis in Europe is causing concerns about deflation in the U.S. and other developed economies after weeks of financial-market turmoil. The fears are most pronounced in Europe, where a combination of spending cuts and tax increases could weigh on economic growth and feed into deflation.

Financial markets are reflecting a diverging expectation. Gold prices have been soaring—a potential indicator of inflation fears—while many other inflation indicators are going the other way.

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Economics

Friday, June 04, 2010

Credit Expansion vs. Simple Inflation / Economics / Inflation

By: MISES

In dealing with the consequences of credit expansion we assumed that the total amount of additional fiduciary media enters the market system via the loan market as advances to business. All that has been predicated with regard to the effects of credit expansion refers to this condition.

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Economics

Wednesday, May 26, 2010

U.S. Inflation Prospects / Economics / Inflation

By: Hans_Wagner

Best Financial Markets Analysis ArticleInflation in the United States is extremely low with the GDP deflator coming in at 0.4 percent and the Core Consumer Price Index measuring 1.1 percent year over year. For April 2010, the last month reported, the CPI declined 0.1 percent.

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Economics

Wednesday, May 19, 2010

George Osbourne's Full Reply to Mervyn King's UK Inflation Letter / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThe following is the full text of George Osbourne's letter to Mervyn King in response to his Inflation excuses letter on the failure of the Bank of England to target CPI inflation at 2% and keep it below the 3% limit in yesterdays released data which saw UK inflation rise from 3.4% to 3.7% with the more publically recognised RPI inflation measure literally soaring to a 19 year high of 5.3% from 4.4% as detailed in yesterdays analysis (18 May 2010 - UK Inflation Hits New High of CPI 3.7%, RPI 5.3%).

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Economics

Wednesday, May 19, 2010

Bank of England Governor Mervyn King's UK Inflation Letter Full Text / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThe following is the full text of Mervyn Kings Inflation excuses letter written to the new Chancellor, George Osbourne in response to the failure of the Bank of England to target CPI inflation at 2% and keep it below 3%, as a consequence of which UK inflation rose from 3.4% to 3.7% with the more publically recognised RPI inflation measure literally soaring to a 19 year high of 5.3% from 4.4% as detailed in yesterdays analysis (18 May 2010 - UK Inflation Hits New High of CPI 3.7%, RPI 5.3%)

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Economics

Tuesday, May 18, 2010

Inflation Destroys Savings / Economics / Inflation

By: MISES

Best Financial Markets Analysis ArticleEverything that is done by a government against the purchasing power of the monetary unit is, under present conditions, done against the middle classes and the working classes of the population. Only these people don't know it. And this is the tragedy. The tragedy is that the unions and all these people are supporting a policy that makes all their savings valueless. And this is the great danger of the whole situation.

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Economics

Tuesday, May 18, 2010

UK Inflation Hits New High of CPI 3.7%, RPI 5.3%, Mervyn King Writes Another Excuses Letter / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis Article UK Inflation has yet again hit a new high of CPI 3.7% up from last months inflation peak of 3.4%, with RPI rocketing even higher to an eye watering 5.3%, a level not seen since 1991. The academic economists were again taken by surprise. The Bank of England's failure in its primary duty of targeting inflation has prompted the Governor Mervyn King to write another letter to this time the new Chancellor George Osbourne that will again state for the fifth time this year that the rise in inflation above 3% was temporary and not to worry, it should come down, eventually (fingers crossed).

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Stock-Markets

Wednesday, May 12, 2010

Inflation Is A Positive Development for the Astute Investor / Stock-Markets / Inflation

By: Sol_Palha

Best Financial Markets Analysis Article"When you see a worthy person, endeavor to emulate him. When you see an unworthy person, then examine your inner self." ~ Confucius,BC 551-479, Chinese Ethical Teacher, Philosopher

We all pretty much have felt the effects of inflation in one form or another. However, economists and the central bankers choose to define inflation as an increase in price of goods. This is a very clever way to actually hide what they are doing. If they are able to inflate the money supply but keep the cost of certain goods suppressed, mainly those that the average Joe uses everyday, they have more or less won; the simple reason being that the average person has come to view inflation in terms of rising prices.

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Economics

Wednesday, May 05, 2010

Greece Economic Depression Resulting in INFLATION NOT DEFLATION Surge / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleGreece, Europe's Achilles Heel continues to implode under its budget deficit and total debt burden sending a series of strengthening shock waves across Europe's credit and financial markets. Whilst many western economies bounce back from the Great Recession of 2008-2009, Greece's economic depression continues as the economy is set to contract by further 4% during 2010 which is much worse than the 2.5% contraction of 2009 and looks set continue contracting for several more years. Greek Unemployment is soaring to 12% this year up from 9.5% in 2009 and is set to continue higher to 13.5% in 2011.

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Economics

Wednesday, April 28, 2010

The “V” Shaped Recovery in Inflation / Economics / Inflation

By: Michael_Pento

Best Financial Markets Analysis ArticleA viable “V” shaped recovery in the economy and markets has now become the accepted view. My view, however, is that the economic recovery will be ephemeral in nature, whereas the real and lasting recovery will be unfortunately found in the rate of inflation. While nearly everyone on Wall Street remains unconcerned about inflation, the cornerstone for increasing prices has already been laid and the foundation is nearing completion.

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Economics

Monday, April 26, 2010

Washington Detached From Reality Producing Phony Inflation Statistics / Economics / Inflation

By: Larry_Edelson

Best Financial Markets Analysis ArticleOur leaders in Washington are so detached from reality, I am thoroughly convinced that they are smoking something.

And I’m not talking about the insane amounts of spending that’s going on in our capital, or even about the patently unpayable debts and promises they’re making to all of us and our foreign creditors. Although I think these things, too, result from whatever drugs they’re on inside the beltway.

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Economics

Sunday, April 25, 2010

Inflation or Deflation, What to Do and When to Act / Economics / Inflation

By: Gary_North

Diamond Rated - Best Financial Markets Analysis ArticleHave you ever seen a documentary where the herd of zebras is at the river's edge? The lions are behind them. The crocodiles are in front of them. What's a wise zebra to do?

Most of them wait. Then, without visible warning, they either run like mad or else plunge into the river.

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Economics

Thursday, April 22, 2010

Teaching Inflation / Economics / Inflation

By: MISES

Diamond Rated - Best Financial Markets Analysis ArticleHunt Tooley writes: I had a great teaching experience early last school year. I taught the history of inflation, and I have never timed a course better. I have taught in colleges and universities since 1985, and I have often thought about doing a course on the history of inflation. But this time, current events pushed me to go ahead.

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Economics

Tuesday, April 20, 2010

UK Inflation Soars CPI 3.4%, RPI 4.4%, Bank of England Forecast Wrong as Usual / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK Inflation CPI surged higher for March from 3% to 3.4% taking the academic economists that populate the mainstream press by surprise against consensus views of inflation rising to 3.1%.

The Bank of England's forecasts for inflation to fall have yet again been shown to be an abysmal failure when it comes to inflation forecasting and targeting where the mantra of UK inflation being at 2% in 2 years time only having been achieved approx 4% of the time, i.e. there is a 96% probability that inflation in 2 years time will NOT be at 2%.

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Interest-Rates

Saturday, April 17, 2010

Trying to Beat the Rate of Inflation With Your Savings? / Interest-Rates / Inflation

By: Adrian_Ash

Best Financial Markets Analysis ArticleWhat the New York Times can't even see in today's record-low bank interest rates...

LESTER BANGS getting loaded on speed, brandy and casual violence...throwing empty bottles down onto the street and assaulting a good friend's long-time partner...before reviewing Lou Reed's Metal Machine Music...

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Economics

Monday, April 12, 2010

Why UK Inflation Will Increase in 2010 / Economics / Inflation

By: John_Cardy

Best Financial Markets Analysis ArticleThe 'expert' economists tell us that Inflation is not a risk to the UK. They say it has risen but will decline again fairly quickly and everything is under control. But it's not. Ask real people running real businesses and they will tell you there a host of reasons why inflation will increase:

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Economics

Monday, April 12, 2010

Bernanke the Great Inflator Says Welcome to Zimbabwe / Economics / Inflation

By: Douglas_French

Diamond Rated - Best Financial Markets Analysis ArticleIf you follow economic affairs at all, you know who Ben Bernanke is. He's the chairman of the Federal Reserve. He was Time's 2009 "Man of the Year." CBS News said he may be the most important Fed chairman in history when Scott Pelley interviewed him for the highly watched 60 Minutes program.

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Economics

Tuesday, April 06, 2010

Both Stock and Gold Markets Have Correctly Assessed the Keynesian Policies of Western Economies / Economics / Inflation

By: Ned_W_Schmidt

Best Financial Markets Analysis ArticleDid some of you feel safer this past weekend? Your wealth was certainly safer. For three days much of the Western world was closed for a religious holiday. Even Keynesians take the holiday. As the Keynesians were away from their government offices, their relentless attack on wealth was silent. As hard as they have been working to destroy wealth in the past year, a rest was probably needed.

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Economics

Monday, March 29, 2010

Greenspan Signals warnings for Bubble-maniacs, the Break-out of Inflation Has Already Begun / Economics / Inflation

By: Gary_Dorsch

Diamond Rated - Best Financial Markets Analysis Article“I guess, I should warn you. If I turn out to be particularly clear, you’ve probably mis-understood what I’ve said,” former Federal Reserve chief Alan Greenspan was fond of saying, when he controlled the Fed’s money spigots. For many Fed watchers, it was a great relief when “Easy” Al finally retired from the Fed, since there is nothing more vexing - than correctly interpreting Green-speak.

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Economics

Tuesday, March 23, 2010

UK CPI Inflation Falls to 3%, RPI Remains at 3.7% / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK CPI inflation fell back unexpectedly for academic economists to 3% from 3.5% the month before, the Bank of England's forecast for UK inflation by the end of 2010 is 1% not 3% which continues to illustrate the Bank of England is failing in its primary role of accurately targeting an inflation rate of 2%.

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Economics

Thursday, March 18, 2010

U.S. Inflation, Yellen Slated for Promotion at the Dole of Doves / Economics / Inflation

By: Michael_Pento

President Obama has nominated Janet Yellen to replace Donald Kohn as the Vice-Chairman of the Federal Reserve. Ms. Yellen served as a former assistant professor at Harvard during Bernanke’s tenure as an undergraduate there and currently serves as the President of the Federal Reserve Bank of San Francisco.

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Personal_Finance

Tuesday, March 16, 2010

UK Petrol Prices to Hit Record High As Stealth Inflation Rages / Personal_Finance / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK Petrol prices are set to hit new record highs over the coming weeks despite Crude Oil at near half its mid 2008 peak of $150, Why ?

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Economics

Sunday, March 14, 2010

Inflation Lessons Learned and Lessons Forgotten / Economics / Inflation

By: Jim_Richter

Diamond Rated - Best Financial Markets Analysis ArticleA Lesson From Keynes - John  Maynard Keynes once said that,"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

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Economics

Thursday, March 11, 2010

America’s Real Estate Burden Ensures Inflation / Economics / Inflation

By: Dr_Jeff_Lewis

The Obama administration and the US Congress have together made inflation the real monetary policy of the United States.  While pundits and talking heads focus on the bailouts and loan packages, they're missing the bigger picture.  It isn't what the US government outright purchased (stock, debt, and real estate paper), but it's what the US government is guaranteeing that will make all the difference.

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Economics

Sunday, March 07, 2010

The FED Won't Deflate or Even Seriously Disinflate / Economics / Inflation

By: Michael_S_Rozeff

Best Financial Markets Analysis ArticleThe FED, in my opinion, is a price taker in the security markets. While its control over the interest rate in the inter-bank market for reserves (Federal Funds) may be very large in the short run, it cannot and does not control interest rates in other markets, such as Treasury bills. These rates and yields are linked to world markets that are too large for the FED to control.

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Economics

Saturday, March 06, 2010

The Inflationist View of History / Economics / Inflation

By: MISES

Best Financial Markets Analysis ArticleA very popular doctrine maintains that progressive lowering of the monetary unit's purchasing power played a decisive role in historical evolution. It is asserted that mankind would not have reached its present state of well-being if the supply of money had not increased to a greater extent than the demand for money. The resulting fall in purchasing power, it is said, was a necessary condition of economic progress. The intensification of the division of labor and the continuous growth of capital accumulation, which have centupled the productivity of labor, could ensue only in a world of progressive price rises.

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Economics

Friday, March 05, 2010

An Economic Storm is Brewing / Economics / Inflation

By: John_Townsend

Best Financial Markets Analysis ArticleWhen the tech bubble burst in 2000, Greenspan tried to “fix” the problem by cutting rates and printing money.  Fix the problem he did … well sort of!  What Greenspan did was create two new bubbles in the credit and real estate markets to replace the tech bubble that had burst.  Millions of jobs were created in these two industries.  Much needed jobs to replace the ones lost as the tech boom came to an end.

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Economics

Wednesday, March 03, 2010

IMF Recommends Doubling Inflation Targets! / Economics / Inflation

By: Claus_Vogt

Best Financial Markets Analysis ArticleI grew up in Germany, a country that went through hyperinflation twice during the 20th Century. Maybe that’s the reason I learned inflation is bad and inflationary policies are diabolic.

Inflationary periods are highly unjust. They undermine the ethics of hard work and thrift. They destroy solidarity, lead to widespread hardship and often to social unrest.

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Economics

Tuesday, February 23, 2010

Inflation Hiding In Plain Sight, The Key To Profits  / Economics / Inflation

By: Bob_Clark

Best Financial Markets Analysis ArticleAs an Account Manager and Trading Instructor, there is a theme I see that keeps recurring.  I hear this from my clients and students over and over, "things are so bad how can I be safe buying".  I hear "we are going to have hyper inflation" or "it is all going to collapse into a deflationary abyss.  In other words, they lose their bearings in a sea of information.  My answer is always the same, we must trust our algorithmic models.   Markets will fluctuate, what you read or listen to is illusion.  When one group has all the money, the rules of the game have changed.

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Economics

Saturday, February 20, 2010

Goodbye Reflation We hardly Knew Ya; Core CPI Drops First Time Since 1982 / Economics / Inflation

By: Mike_Shedlock

Yesterday, inflationists were out in full force after the Producer Price Index (PPI) release.

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Economics

Thursday, February 18, 2010

Keynesian Economics, A Halfwit’s Guide to Monetary Inflation / Economics / Inflation

By: LewRockwell

Best Financial Markets Analysis ArticleRichard Daughty writes: Information Clearing House Newsletter had the quote, “Believe those who are seeking the truth; doubt those who find it” by Andre Gide, which is generally true about most things, except in the case of economics, because the only true economic theory has already been found, and it is the Austrian school of economics, also known as the Austrian Business Cycle Theory (ABCT), and I have nothing but contempt for anyone who says differently, especially since it can be found every day, for free, at mises.org, and so to believe anything else is just a matter of stupidity and/or willful ignorance.

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Economics

Wednesday, February 17, 2010

Krugman Says Inflation Is The Answer / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleInquiring minds are considering The Case For Higher Inflation by Paul Krugman.

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Economics

Tuesday, February 16, 2010

UK Inflation Smashes Through 3%, Hits 3.5%, Bank of England Says Don't Panic! / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThe inflation mega-trend continues to forcefully manifest itself in the continuing surge higher of UK Inflation as measured by the Consumer Price Index (CPI) which soared from 2.9% to 3.5% for January data. Inflation has virtually doubled in a little over 2 months rising from 1.9% for November data to now stand at 3.5%, the surge in inflation has caught the whole mainstream media and academic economists by surprise that barely 2 months ago were still contemplating deflation. The RPI continued its spike higher rising to 3.7% from 2.4% the month before, and the real UK inflation rate as measured by the Market Oracle rose from 2.7% to now stand at 4.3%.

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Economics

Wednesday, February 03, 2010

Will the Inflationary Hurricane Blow Your Savings Away? / Economics / Inflation

By: Gary_North

Best Financial Markets Analysis ArticleAllan Meltzer wrote a very good essay for the Wall Street Journal on January 27. It dealt with the build-up in the Federal Reserve System's monetary base as a result of its purchases of government debt, especially Fannie Mae and Freddie Mac debt, in the fall of 2008. Its title and subhead tell the story:

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Economics

Thursday, January 21, 2010

Deflationists Always Wrong, High Inflation Ahead / Economics / Inflation

By: Gary_North

Best Financial Markets Analysis ArticleOver the past month, I have written seven lengthy articles on the totally erroneous theory that consumer price deflation is inevitable, no matter what the U.S. government and the Federal Reserve System do. You can read them here.

I would like to believe that this will end the debate. It won't.

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Economics

Tuesday, January 19, 2010

U.S. CPI Inflation Forecast 2010 Targets a Break Above 3% / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleWhilst the United States has experienced real year on year price deflation during 2009 as illustrated by the comparative CPI indices below, however key elements of the in-depth analysis for UK CPI inflation of 27th December 09 can also be applied to U.S. inflation expectations that converge towards 2010 being a year of inflation for both countries with UK inflation to breaking above 3% early 2009 and staying above 3% for most of the year which was confirmed by today's UK Inflation data that showed CPI soar by 1% in one month to rise from 1.9% to 2.9% as the below graph illustrates.

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Economics

Tuesday, January 19, 2010

UK Inflation Rockets to CPI 2.9%, Sparking Panic at the Bank of England / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK CPI Inflation bust through the 2% target, bust through the quickly revised academic economists consensus targets of 2.6% of just last night, onwards and upwards to 2.9%, registering a record rise of 1% and within touching distance of 3% a break of which would trigger the Bank of England Governor Mervyn King to write a letter to the Chancellor to explain why he is not competent at keeping inflation within the 1% to 3% target band, RPI's rise was even more spectacular by rising from just 0.3% to 2.4% in just one month. My earlier article explained the reasons behind today's anticipated surge (UK CPI Inflation Soars Above 2% Targeting a Break Above 3%) so I won't repeat here, instead leave the mainstream press to focus on this AFTER the event.

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Economics

Monday, January 18, 2010

UK CPI Inflation Soars Above 2% Targeting a Break Above 3% / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK CPI inflation is expected to bust through 2% tomorrow (Tuesday 19th) towards a target of 2.6% which was set over 3 weeks ago in the in-depth analysis and UK inflation forecast for 2010, that forecast a rise in UK inflation to above 3% early 2010, spiking as high as 3.6% and staying above 3% for most of the year only dipping to 2.7% by the end of the year as illustrated by the below graph.

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Economics

Monday, January 18, 2010

In the United States Majority Rules, the Inflation Consensus / Economics / Inflation

By: Viresh_Amin

Most people are oblivious for a correct justification for the perpetual rise in all that can be priced i.e., oil prices rising to ungodly digits. For Americans, oblivious would be an understatement, though some are waking up to meet reality face to face, but not enough. Over the longer term horizon the general consensus among the public is that the price of everything will continuously rise, and so my wage will rise with it. It’s practically hard wired into the uninformed American mind and time and time again they fall into a myth.

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Economics

Monday, January 18, 2010

Monetary Base Expansion to Ignite Inflation Not Deflation / Economics / Inflation

By: Gary_North

Diamond Rated - Best Financial Markets Analysis ArticleThere are two fundamental principles that govern all economic systems: (1) supply and demand; (2) high bid wins. What distinguishes one economic system from another is this: (1) who is allowed to supply, and who is allowed to demand; (2) the currency unit in which the high bid wins.

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Economics

Friday, January 15, 2010

Howard Ruff Preparing for Rough Times By Hedging Against Inflation / Economics / Inflation

By: The_Gold_Report

Best Financial Markets Analysis ArticleHoward Ruff, who has observed the markets, the economy and government through three serious recessions and witnessed the rise and fall of the dot-com and real estate bubbles, entered the world of precious metals when Robert Preston's How to Prepare for the Coming Crash caught his eye in the early '70s. Shortly thereafter, he founded The Ruff Times (a financial newsletter that has served some 600,000 subscribers over the years) and came out with his first book (a blockbuster that sold 2.6 million copies and made his name a household word).

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Economics

Friday, January 15, 2010

Inflation 101 / Economics / Inflation

By: Puru_Saxena

Best Financial Markets Analysis ArticleWe want all our readers to understand that inflation is a disaster for society and it only benefits the elite.  In fact, we will go even further by stating that inflation is a hidden tax, an insidious crime against the public. It is the easiest way for any government to confiscate the savings of the public and for generations, wealth has been transferred in this manner.  

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Economics

Wednesday, January 13, 2010

What the Deflationists Are Missing / Economics / Inflation

By: David_Galland

Best Financial Markets Analysis ArticleAn interesting article by Ambrose Evans-Pritchard came my way the other day. It’s worth a read, if for no other reason than that he paints an appropriately dark picture of the current state of the U.S. economy. You can read it here.

While I very much share Mr. Evans-Pritchard’s view that the global economy is far from out of the woods, our views diverge in that he sees devastating deflation speeding our way down the tunnel. Casey Research readers of any duration know that we see devastating inflation. 

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News_Letter

Sunday, January 10, 2010

UK CPI Inflation Forecast 2010 / News_Letter / Inflation

By: NewsLetter

The Market Oracle Newsletter
December 27th, 2009 Issue #95 Vol. 3

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Commodities

Friday, January 08, 2010

Inflation Pressures Heating Up, Again! / Commodities / Inflation

By: Guy_Lerner

The composite indicator that measures the trends in gold, crude oil, and yields on the 10 year Treasury will end the week in the extreme zone, and this should be a headwind for equities. Inflation pressures, whether real or perceived, are heating up. See figure 1 a weekly chart of the S&P500 with the indicator in the lower panel.

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Economics

Monday, January 04, 2010

How Deflation Is Inflation / Economics / Inflation

By: Shelby_H_Moore

Best Financial Markets Analysis ArticleLet's squash the debate between deflationalists and hyper-inflationalists. Here follows the math that shows how we get the equivalent effect of price inflation (and skyrocketing gold price) when there is deflation on a debt money standard.

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Economics

Monday, December 28, 2009

Astonishing Inflation Data from the BLS / Economics / Inflation

By: Larry_Edelson

Best Financial Markets Analysis ArticleWith the new year rapidly approaching, not much is happening in the markets. So I’d like to take this time to show you some stats that simply amaze me.

Even more astonishing, the figures I’m about to review with you are most likely conservative, and err on the low side of the spectrum.

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Economics

Sunday, December 27, 2009

UK CPI Inflation Forecast 2010, Imminent and Sustained Spike Above 3% / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleThe UK inflation forecast for 2010 is first of a three part series of in depth analysis as part of the inflation mega-trend, with UK interest rates and GDP growth forecast to follow in the coming week. The whole scenario and implications of will be published as an ebook that I will make available for FREE. Ensure you are subscribed to my always free newsletter to get the latest analysis in your email box and check my most recent analysis on the unfolding inflation mega-trend at http://www.walayatstreet.com.

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Economics

Sunday, December 27, 2009

Yield Curve Predicts Inflation / Economics / Inflation

By: Andrew_Abraham

There is a record wide spread on the yield curve currently. A record breaking 287 points. For those of you who do not know what the yield curve is…it is the difference between the 2 year and 10 year notes. Usually when there is a difference like this it usually means rapid economic growth as well as Inflation. This time because governments all over the world have run the printing presses and inflation is more of a potential outcome.

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Economics

Friday, December 25, 2009

UK Producer Prices Inflation Analysis / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThis is the next in a series of analysis as part of my unfolding inflationary mega-trend scenario towards the formulation of an inflation forecast for 2010 and beyond. I aim to complete the whole scenario including interest rates, economy and implications of before the end of December which will be published as an ebook that I will make available for FREE. Ensure you are subscribed to my always free newsletter to get the latest analysis in your email box and check my most recent analysis on the probable inflation mega-trend at http://www.walayatstreet.com

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Economics

Thursday, December 24, 2009

UK Inflation Analysis, M4 Money Supply Adjusted for the Velocity of Money / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThis is the next in a series of analysis as part of my unfolding inflationary mega-trend scenario towards the formulation of an inflation forecast for 2010 and beyond. I aim to complete the whole scenario including interest rates, economy and implications of before the end of December which will be published as an ebook that I will make available for FREE. Ensure you are subscribed to my always free newsletter to get the latest analysis in your email box and check my most recent analysis on the probable inflation mega-trend at http://www.walayatstreet.com

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Economics

Tuesday, December 22, 2009

A Case for the Inflation Camp / Economics / Inflation

By: Robert_Murphy

Diamond Rated - Best Financial Markets Analysis ArticleOne of the more awkward situations facing Austrian economists today is that we are divided on whether to expect price deflation or inflation. Although it's good that we publicly disagree with each other — rather than bury our disagreements to reassure the lay public that we know what we're talking about — it's nonetheless unsettling that our prognoses for the US dollar are so divergent.

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News_Letter

Thursday, December 17, 2009

The Inflation Mega-trend and the Illusion of Price Deflation / News_Letter / Inflation

By: NewsLetter

The Market Oracle Newsletter December 16th, 2009 Issue #93 Vol. 3 Read full article... Read full article...

 


Economics

Wednesday, December 16, 2009

The Inflation Mega-trend and the Illusion of Price Deflation / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleThis analysis seeks to get to the heart of the matter to answer the question - Have we experienced Deflation and IF we have are we still in Deflation Now ?

This is the next in a series of articles as part of my unfolding inflationary mega-trend scenario that is an important stepping stone towards the formulation of a inflation forecast for 2010 and beyond. I am to complete the whole scenario and implications of before the end of December which will be published as an ebook that I will make available for FREE. Ensure you are subscribed to my always free newsletter to get the latest analysis in your email box and check my most recent analysis on the probable inflation mega-trend at http://www.walayatstreet.com

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Economics

Tuesday, December 15, 2009

UK CPI Inflation Soars as RPI Deflation Comes to an Abrupt End / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThe Inflation mega-trend scenario that I have been writing on during the past month is starting to manifest itself as UK Inflation data for November illustrates showing the Governments preferred CPI inflation surging higher to 1.9% up from 1.5% and RPI reversing October Deflation of -0.8% to now stand at Inflation of +0.3%.

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Economics

Tuesday, December 15, 2009

Further Misery for UK Savers as Inflation Erodes Value of Savings Pot / Economics / Inflation

By: MoneyFacts

Savings rates are still annoyingly low, with the average no notice rate currently at 0.81%, not far above bank base rate.

The recent published inflation figures shows that the real return after basic tax and inflation on an average no notice savings account is at a worrying minus 1.25 per cent, the lowest since May this year.

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Economics

Wednesday, December 09, 2009

Aristophanes on Inflation / Economics / Inflation

By: Clifford_F_Thies

Best Financial Markets Analysis ArticleIt used to be that every economist worth his salt knew Gresham's Law (or, if he was Polish, Copernicus's Law): "bad money drives out good." Narrowly understood, this rule says that when the government requires people to accept different forms of money at an exchange rate fixed by law, the form of money that is overvalued (the "bad money") will circulate, while the form of money that is undervalued (the "good money") won't.

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Economics

Tuesday, December 08, 2009

Email Exchange With The Cleveland Fed On U.S. Inflation Expectations / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleA couple weeks ago I received an email from the Cleveland Fed on A New Approach to Gauging Inflation Expectations.

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Economics

Wednesday, November 25, 2009

The Next Economic Crisis: Spiraling Inflation - Part 2 / Economics / Inflation

By: Nick_Barisheff

Diamond Rated - Best Financial Markets Analysis ArticleRead Part 1 “The Next Crisis: Spiralling Inflation

“Under a paper-money system, a determined government can always generate higher spending and hence positive inflation.”– Ben Bernanke

The investment world is a risky and confusing place right now. Part 1 of this article (The Next Crisis: Spiralling Inflation) detailed the reasons why the next stage in the financial crisis will almost certainly be spiralling inflation. This article (Part 2) provides a solution for investors who are looking for a way to shield their hard-earned wealth from the destruction of high and uncontrollable inflation.

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Economics

Sunday, November 22, 2009

Ask India About Inflation / Economics / Inflation

By: Andrew_Abraham

Let’s put things into perspective India has one of the largest populations in the world as well it is one of the strongest markets this year. The economy is booming. There are new constructions starts, corporate earnings have been going through the roof as well as the Rupee has gained in value against the US dollar. Sounds great… Right?

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Economics

Friday, November 20, 2009

Good Inflation / Economics / Inflation

By: Joseph_T_Salerno

Best Financial Markets Analysis Article

Last week a student in my MBA-level intermediate-macro seminar raised a provocative question. We were discussing the various kinds of (price) deflation and which kinds, according to Austrians, are benign and accommodate consumer preferences, and which are malignant and conflict with consumer preferences.

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Economics

Wednesday, November 18, 2009

Deflationists Are WRONG, Prepare for the INFLATION Mega-Trend / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThe jist of the deflationists argument is that debt deleveraging MUST trigger huge consumer and asset price deflation. Whilst we have all witnessed huge asset price deflation and some consumer price deflation during 2008 and into 2009. However we have also witnessed unprecedented government and central bank actions of this year, which have ignited asset price inflation with more to come that is now starting to feed into consumer price inflation.

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Economics

Tuesday, November 17, 2009

The Investment Game Plan, How to Combat Inflation / Economics / Inflation

By: Dr_Jeff_Lewis

Best Financial Markets Analysis ArticleInflation is an easily understood phenomenon.  Although it takes a myriad of think tanks to find the root of the problem, the issue is quite simple, and investors can easily prepare their portfolios against the ravages of inflation. 

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Economics

Tuesday, November 17, 2009

Three Reasons Why Inflation Will Not Be Stopped / Economics / Inflation

By: Dr_Jeff_Lewis

Best Financial Markets Analysis ArticleInflationary practices are the primary driver of growth in the value of precious metals, and they are already in play to combat the credit crunch.  Although the Federal Reserve is planning its exit strategy, there is little chance one will actually be enacted – which means that inflation will continue to bulldoze the value of the US dollar. 

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Economics

Monday, November 09, 2009

What Is Inflation and How Does One Measure It? / Economics / Inflation

By: Mike_Shedlock

Diamond Rated - Best Financial Markets Analysis ArticleTo understand inflation, one must first understand what money is and how to measure it. Please read What is Money and How Does One Measure It? before attempting to understand what follows.

Unfortunately there is no general agreement as to the definition of inflation. Here are some of the widely used definitions as noted in Inflation: What the heck is it?

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Economics

Friday, November 06, 2009

The Path To Runaway U.S. Inflation / Economics / Inflation

By: Ganesh_Rathnam

Best Financial Markets Analysis Article"I see green shoots," said Fed Chairman Ben Bernanke on 60 Minutes back in March, doing his best rendition of Haley Joel Osment from the movie The Sixth Sense. Since then, every poor economic headline in the lapdog media has been preceded with the word "unexpected," as if the clueless chairman's pronouncements were suddenly the Gospel, and the economy had indeed recovered.

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Economics

Thursday, November 05, 2009

Treasury Inflation Protected Securities (TIPS), Are They For You? / Economics / Inflation

By: Michael_Pollaro

Best Financial Markets Analysis ArticleOn November 4th, Bloomberg ran this piece: U.S. to Sell $81 Billion in Long-Term Debt Next Week

http://www.bloomberg.com/..

Same old same old, right?  Another big treasury auction.  Maybe it’s a bit more than that, this time.

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Economics

Friday, October 30, 2009

Ready for inflation in finance, living costs and bone-headed stupidity...? / Economics / Inflation

By: Adrian_Ash

Best Financial Markets Analysis ArticleSINCE MONEY MAKES the world go round, more of it would set the earth spinning faster, right? Which would be a good thing, of course...

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Economics

Thursday, October 29, 2009

Dangerous Inflationary Side Effects of G20 Ultra-Easy Money / Economics / Inflation

By: Gary_Dorsch

Diamond Rated - Best Financial Markets Analysis ArticleOperating under the elixir of ultra-low interest rates, and flush with trillions of fiat currency at their disposal, courtesy of the world’s top-20 central banks, hedge funds and banking Oligarchs are once again making risky and daring bets in commodities, emerging markets, junk bonds, and blue-chip stocks, defying gravity with trades that would have been un-thinkable just six-months ago.

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Economics

Thursday, October 29, 2009

The Next Economic Crisis, Spiralling Inflation / Economics / Inflation

By: Nick_Barisheff

Diamond Rated - Best Financial Markets Analysis ArticleAs the credit crisis ends, a bigger one is just beginning

“The US government has a technology, called a printing press… that allows it to produce as many US dollars as it wishes at essentially no cost.” – Ben Bernanke

The US economy contracted for four consecutive quarters since October 2008, something we have not seen since the Great Depression. A V-shaped recovery is simply not in the cards because the credit crisis has caused deep, systemic damage. Having said that, if the recession ends this year, it certainly won’t be because the global economy is healthy.

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Economics

Wednesday, October 28, 2009

Stealth Inflation / Economics / Inflation

By: John_Browne

Over the past two years, the federal government and the Federal Reserve have dispersed trillions of public dollars, run up enormous deficits, and kept interest rates at zero. In just about any economic textbook, this combination of policies would be described as the perfect recipe for inflation. Yet, with the exception of the usual increases in health care and education, prices by and large are not rising. Many have concluded that our economic leadership has simply outsmarted the textbooks.

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Economics

Friday, October 23, 2009

When Will Inflation Really Hit Us? / Economics / Inflation

By: Terry_Coxon

Best Financial Markets Analysis ArticleMost of us are gathered at the station, watching for the Inflation Express to come rumbling in. But we've been waiting for a while now. Just when should we expect the big locomotive to arrive and start pushing the prices of most things uphill?

We’d all like to know the exact date, of course, but no one can know for sure. Not even a careful reading of the Mayan calendar will help.

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Economics

Saturday, October 17, 2009

Inflation and Government Deficits, Milton Friedman's View / Economics / Inflation

By: Paul_L_Kasriel

Best Financial Markets Analysis ArticleBefore getting started on this month's essay, I would like to say something about last month's chart show. I received a number of favorable comments about the different format. I have to admit that my ego was bruised a bit. I thought you liked my prosaic prose. My ego notwithstanding, I will try to give the customers what they want more often - just not every month. The reason for not providing a chart show every month is that not enough changes that frequently to warrant such. So, this month you are stuck with the prosaic prose. And because not that much has changed from last month save for stronger-than-previously expected consumer spending in the third quarter, I am going to discuss two issues that are getting a lot of ink of late rather than spending time discussing the updated forecast.

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Economics

Saturday, October 10, 2009

Measuring CPI Inflation, Alice In Wonderland And The Bond Yield Paradox / Economics / Inflation

By: Andrew_Butter

Diamond Rated - Best Financial Markets Analysis ArticleThis article is not about what inflation is, it's about how you measure one component, CPI (Consumer Price Index), there are other components; but that's the focus of this article.

Big picture to estimate CPI you work out a "basket" of goods and services that consumers buy which you think is representative of the structure of spending in an economy, and you do a survey, then you compare that with how much it would have cost to buy the same "basket" a year before.

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Economics

Wednesday, October 07, 2009

The Autumn 2009 Inflation Time Bomb / Economics / Inflation

By: Paul_Tustain

Best Financial Markets Analysis ArticleIt's not only the energy markets that threaten the 'low inflation' data now encouraging bondholders to keep buying...

THE PUBLISHED INFLATION DATA are surprisingly unsophisticated in so far as they compare current prices with a snapshot a year earlier.

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Economics

Thursday, September 24, 2009

Inflation is Our Future, Gold About to Shine? / Economics / Inflation

By: Puru_Saxena

Best Financial Markets Analysis ArticleAt present, there is a lot of confusion amongst the investment community and opinion is divided as to whether we will witness inflation or deflation. 

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Economics

Wednesday, September 23, 2009

Martin Weiss Abandons Deflation for Inflation After 27 Years / Economics / Inflation

By: Gary_North

Diamond Rated - Best Financial Markets Analysis ArticleDr. Martin Weiss has reversed course. He now thinks price inflation lies ahead.

This is the equivalent of Steve Jobs announcing: "The future of computing over the next decade is with Microsoft Windows 7."

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Economics

Wednesday, September 23, 2009

UK Inflation Forecast, Will RPI Deflation Return to Inflation? / Economics / Inflation

By: Nadeem_Walayat

Diamond Rated - Best Financial Markets Analysis ArticleUK RPI Inflation data of minus 1.3% for August 09 continues to show deflation moderating from the June low of -1.6%. Whilst the Governments preferred CPI inflation measure recorded a slight dip to 1.6% from 1.8% dipping further below the Bank of England's target rate of 2%.

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Economics

Monday, September 21, 2009

From Deflation to Inflation / Economics / Inflation

By: Martin_D_Weiss

Best Financial Markets Analysis ArticleStep by step, with little fanfare and great complacency, we are witnessing a fundamental, global shift that’s rapidly transforming the investment scene:

The forces of deflation are temporarily receding; and in the meantime, the forces of inflation threaten to roar back with a vengeance.

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Economics

Monday, September 21, 2009

Is Fed Money Printing About to Trigger Inflation? / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleInquiring minds are wondering about the possibility of "pent-up" inflation from the massive expansion money supply by the Fed. Our search for the truth starts with the question "Which Comes First: The Printing or The Lending?"

This is a critical question given the massive expansion of base money by the Fed as shown in the following chart.

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Economics

Thursday, September 10, 2009

A Tale of Two Inflations / Economics / Inflation

By: Tim_Iacono

Diamond Rated - Best Financial Markets Analysis ArticleFor some time now, the disparity between price increases for imported goods and price increases for domestic goods and services has been of great interest to me and, after working through all of the applicable Labor Department data on this subject, it quickly becomes clear that there is an interesting story to tell here about two very different types of U.S. inflation in recent years - domestic inflation and imported inflation.

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Economics

Sunday, August 30, 2009

Fed is Accelerating the Monetization of Debt, High Inflation is on Its Way / Economics / Inflation

By: Global_Research

Diamond Rated - Best Financial Markets Analysis ArticleBob Chapman writes: The public option for Obama insurance coverage has been described as just a sliver of the overall proposal. Universal coverage directly by government was not an essential element says Health & Human Services. Of course it was. The program is in retreat and the only way the Democrats can get passage of any kind is to re-craft a toothless passage and ram it through in a party line vote.

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Economics

Tuesday, August 25, 2009

Inflation Breeds Even More Inflation / Economics / Inflation

By: MISES

Diamond Rated - Best Financial Markets Analysis ArticleThorsten Polleit writes: I. Warning Against Fiduciary Media

Early in the 20th century, Ludwig von Mises warned against the consequences of granting the government control over the money supply. Such a regime inevitably creates money through bank credit that is not backed by real savings — a type of money that Mises termed "fiduciary media."

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Economics

Thursday, August 20, 2009

If Inflation Is a Monetary Phenomenon, Is U.S. Hyperinflation a Clear and Present Danger? / Economics / Inflation

By: Paul_L_Kasriel

Best Financial Markets Analysis ArticleWe hear a lot of concern that the Fed's mushroomed balance sheet over the past two years is setting the stage for a 1970s' style inflation here. So long as we have a fiat (a.k.a. Chrysler?) monetary standard, the threat of hyperinflation always lurks. But is the stage currently being set for such an eventuality? I do not think so.

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Economics

Wednesday, August 19, 2009

Don't Fall for the Deflation Hype, Beware Inflation Remains a Threat / Economics / Inflation

By: MoneyWeek

Best Financial Markets Analysis ArticleSo deflation's not all bad after all then.

The average commuter will see the price of a season ticket fall by around 0.4% next year, after the annual rate of retail price index inflation came in at -1.4% in July. It might not sound like much of a price cut, but it's a damn sight better than the 6% raise most had to pay out this year.

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Economics

Sunday, August 16, 2009

The Fight Between Inflation and Deflation is Over! / Economics / Inflation

By: DailyWealth

Best Financial Markets Analysis ArticlePorter Stansberry writes: 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 (debt) expansion, or later as a final and total catastrophe of the currency system involved.– Ludwig von Mises

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Economics

Friday, August 14, 2009

Misguided Worries About Inflation / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleInquiring minds reading about the threat of massive inflation looming on the horizon are asking "Where's the Inflationary Beef?" It's a good question too, so let's search far and wide for symptoms.

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Economics

Wednesday, August 12, 2009

Get Ready for Startling CPI Inflation Data this October / Economics / Inflation

By: Michael_Pento

Get ready to be hit by some startling inflation data. The data soon to be released by the government will put a dagger through the hearts of those who are predicting a protracted period of deflation.  Wall Street and Washington are telling you inflation isn’t something we need to be concerned about for years to come. The truth is starting this October the reported Consumer Price Inflation data will become ugly. That is because the year over year comparisons of energy and commodity prices become very unfavorable.

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Economics

Tuesday, August 11, 2009

The Most Accurate Predictor of Inflation (video) / Economics / Inflation

By: INO

The following video covers inflation, the Achilles heel of the financial markets, and how to really trade like the pros.

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Economics

Monday, August 03, 2009

Why We Can't Avoid Rampant Inflation / Economics / Inflation

By: Money_Morning

Best Financial Markets Analysis ArticleWilliam Patalon III writes: Has the massive Obama stimulus plan put us on a collision course with virulent inflation?

It sure looks that way.

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Economics

Monday, August 03, 2009

Balkan-Style Inflation Is Coming to Us, Thanks to Our Masters / Economics / Inflation

By: LewRockwell

Best Financial Markets Analysis ArticleMichael S. Rozeff writes: In 1963, Milton Friedman and Anna Schwartz wrote "Inflation is always and everywhere a monetary phenomenon." The thrust of this statement is that inflation is caused by unsound monetary arrangements – not by those who are raising prices or asking for higher wages, and not by oil speculators or by dealers in foreign exchange. This statement was made at a time when blame was being placed for inflation on groups in society.

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Economics

Tuesday, July 14, 2009

What's the Real CPI Inflation Rate? / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleInquiring minds are asking "What is the Real CPI?" It's a good question, too. However, you can find many widely differing opinions. For example, you will get one answer from the government, a different answer from sites like Shadowstats, and a third opinion from me.

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Economics

Sunday, July 12, 2009

Fed Deflation Propaganda to Meet Wealth Destroying Inflation / Economics / Inflation

By: MISES

Best Financial Markets Analysis ArticleHoward S. Katz writes: The Federal Reserve is lying about the nation's money supply (M1). The current figure for money supply is being given as $1.6 trillion. The actual number is $2.34 trillion. The reported number is equivalent to an increase of 16% over the past year. The actual number is equivalent to an increase of 70% over the past year. This compares with the nation's high money-supply increase of 16.9% in 1986.

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Economics

Wednesday, July 08, 2009

HyperInflation or Deflation? / Economics / Inflation

By: Puru_Saxena

Best Financial Markets Analysis ArticleAt present, the investment community is divided as to whether the world economy faces hyperinflation or deflation.  Some observers are convinced that the central banks’ printing press will take the world towards hyperinflation whereas others believe that the ongoing contraction in American private-sector debt will result in outright deflation.  So, what will the future bring?

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Economics

Monday, July 06, 2009

Is Inflation a Fact… Or Just an Opinion, Part2? / Economics / Inflation

By: Graham_Summers

Best Financial Markets Analysis ArticleYesterday I outlined the basic arguments for why inflation is believed to have hit the market or will be soon. In a nutshell, inflationists look at the Fed’s money printing as shown by the US Monetary Base and claim that inflation must be just around the corner.

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Economics

Friday, July 03, 2009

Inflationary Crack-up Boom has Commenced in the G7 Economies! / Economics / Inflation

By: Ty_Andros

Diamond Rated - Best Financial Markets Analysis ArticleThere 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 a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. --Ludwig von Mises

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Economics

Wednesday, July 01, 2009

Walls to Block U.S. Deflation / Economics / Inflation

By: Jim_Willie_CB

Diamond Rated - Best Financial Markets Analysis ArticleMany are the obstructions to the so-called (mislabeled) deflation threat within the US Economy. To begin with, falling asset prices does not constitute deflation. One of the primary objectives of the banking elite in firm control of the USGovt and US Congress is to confuse the public and investment community on the entire topic of inflation, what it is, how it is measured, and its risks. The same goes for deflation. All debate as to whether the Untied States will suffer from inflation or deflation is a horrible misdirected distraction that manifests the confusion. The US will suffer both higher monetary inflation and worse economic deterioration, not one or the other, but BOTH, and with steadily increasing intensity.

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Economics

Wednesday, July 01, 2009

Is Inflation a Fact… Or Just An Opinion? Part1 / Economics / Inflation

By: Graham_Summers

Best Financial Markets Analysis ArticleWe need to seriously re-assess the threat of inflation.

Anytime a particular point of view reaches mass hysteria, you HAVE to be willing to look at it from a different perspective. Today, inflationary fears are beginning to reach that point. The words “Weimar” and “Zimbabwe” are thrown around regularly. Hyperinflation is becoming a serious point of discussion even amongst people who rarely focus on financial markets.

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Stock-Markets

Tuesday, June 30, 2009

Inflationary Pressures and the MAE Faber Investment Strategy / Stock-Markets / Inflation

By: Guy_Lerner

Best Financial Markets Analysis ArticleWilliam Hester, CFA is a Senior Financial Analyst with the Hussman Funds, and he has written an interesting article that attempts to answer the question: "does the current economic backdrop yet have the characteristics that usually coincide with the end of secular bear markets?"

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Economics

Monday, June 29, 2009

Apples and Inflation / Economics / Inflation

By: Michael_Pento

Last week on CNBC’s “The Kudlow Report” there was a thrilling debate over inflation between Alan Blinder and Arthur Laffer. Mr. Laffer (former member of Reagan’s Economic Policy Advisory Board) encapsulated his position that we need to fear the return of inflation by simply stating that “…if you have a huge increase the supply of apples, the price of apples falls.” While Mr. Blinder (former Vice Chairman of the Board of Governors of the Federal Reserve System) responded by stating, “If people suddenly want to hoard apples and the apple suppliers provide a lot of apples, you’re not going to have inflation of apple prices.”

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Economics

Wednesday, June 24, 2009

Inflation or Hyperinflation / Economics / Inflation

By: Axel_Merk

Best Financial Markets Analysis ArticleInflation is dead – long live inflation! We hear about the threat of hyperinflation in the media – is this for real, can it happen in the U.S.? Are we hyping up the word inflation, is it an inflationary play of words to grab attention to discuss the threat of hyperinflation? Let’s deflate the hype and put inflation where it belongs… at the forefront of your concerns.

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Economics

Monday, June 22, 2009

A High Unemployment Rate Correlates to a High Rate of Inflation / Economics / Inflation

By: Michael_Pento

Best Financial Markets Analysis ArticleIt absolutely amazes me how sanguine the Fed, Treasury and Administration are about the prospects for subdued inflation. What they and many economists like to point to as the source of their optimism is the high rate of unemployment, which is currently 9.4%.

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Economics

Sunday, June 21, 2009

Mass Deflation or Inflation? / Economics / Inflation

By: LewRockwell

Diamond Rated - Best Financial Markets Analysis ArticleGary North writes: Back in 1973, gold standard advocate John Exter made a phrase famous in hard-money circles: "Pushing on a string." Exter argued that prices of all assets except gold (he ignored silver) would someday collapse because of the pyramiding of debt. Banks would eventually cease to lend, out of fear of default. That would cause the default.

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Commodities

Wednesday, June 17, 2009

How to Forecast Stock and Commodity Asset Prices Part2 / Commodities / Inflation

By: Adrian_Ash

Best Financial Markets Analysis ArticlePick a Number...Any Number, "We didn't abandon the money-supply aggregates. They abandoned us..."

TIME WAS that central banks targeted and fretted about keeping their currency stable against the Dollar.

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Economics

Sunday, June 07, 2009

London Retail Price Inflation Falls the Most Over the Past 12 Months / Economics / Inflation

By: HBOS

Best Financial Markets Analysis ArticleLondon experienced the largest decline in retail prices1 over the past year with a 2.8% fall between 2008 quarter one and 2009 quarter one, according to new research by Halifax. This was more than twice the 1.3%* fall for the UK as a whole. However, despite this, the overall price level in the capital remains higher than any other UK region. All 12 UK regions recorded a decline in retail prices over the past 12 months.

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Economics

Friday, June 05, 2009

Ending of Deflation Fears, Big Inflation Coming / Economics / Inflation

By: Zeal_LLC

Diamond Rated - Best Financial Markets Analysis ArticleAt the height of the stock panic in late November, the flagship S&P 500 stock index had plunged 49% year-to-date.  Fully 2/3rds of this decline happened in the 9 weeks leading into the panic lows!  Naturally the psychological impact of such an epic selloff was utterly massive.  Fear exploded to unprecedented extremes.

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Economics

Tuesday, June 02, 2009

Inflation or Deflation, Which is the Greater Risk Over the Next Five Years? / Economics / Inflation

By: Paul_L_Kasriel

Diamond Rated - Best Financial Markets Analysis ArticleI will not keep you in suspense. I believe that the greater risk for the global economy in general and the U.S. economy in particular is inflation, not deflation. I arrive at this conclusion both on secular and cyclical grounds.

Secular Factors

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Commodities

Monday, June 01, 2009

Stocks and Commodities Markets Retro-inflation Revisited / Commodities / Inflation

By: Clif_Droke

Best Financial Markets Analysis ArticleBack in 2001-2002 I used the term “retroflation” in a series of newsletters and articles to describe what I saw as a battle between the forces of inflation and deflation. The Kress 30-year cycle had peaked in late 1999 and with it the 1990s bull market in stocks. The U.S. was in the throes of economic recession and tech stocks were in freefall. Yet the Kress cycles called for a major bottom in late 2002 with the 6-year/12-year cycle bottoming and the Fed was already beginning to aggressive cut interest rates, showing that it was serious about re-inflating the economy.

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Economics

Thursday, May 07, 2009

This is Not the 1930’s Depression, Which Means High Inflation to Come / Economics / Inflation

By: Michael_Pollaro

Diamond Rated - Best Financial Markets Analysis ArticleMany comparisons have been made between today’s financial and economic crisis and the Great Depression, none more than the specter of deflation.  Well, contrary to what happened during the Great Depression and contrary to the deflationary forecasts of government leaders, central bankers and economists, deflation, while always possible, is, in this man’s opinion, highly unlikely.  Why’s that?  Because the monetary and political framework of today is nothing like that of the early 1930’s.  In fact, it’s nothing like anything seen, ever.  Quite simply, today’s monetary and political framework is built for inflation, as much inflation as the government, the Federal Reserve and their banking partners want.   And inflation, and a whole lot of it, is exactly what we are about to get.

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Economics

Wednesday, April 29, 2009

The Two Gaping Holes in the Inflationist Argument / Economics / Inflation

By: Andrew_Butter

Best Financial Markets Analysis ArticleThe current debate revolves around the simplified monetarist equation (which everyone accepts), that says (M•VT = P•TT) where (M) is the amount of (liquid) money in the system, (VT) is the transactions velocity of this money which is the average frequency across all transactions with which a unit of money is spent (i.e. how fast it moves from one pocket to another), (PT) is the price of goods and services being traded and (T) is an index of the real value of aggregate transactions (no it's not the number of transactions, that's included in (V) http://en.wikipedia.org/wiki/Quantity_theory_of_money)). [VT] and [T] are hard to measure and the equation can also be expressed as (M•V = P•Q) where (Q) is output, which approximates to real GDP, typically (M) is measured and (V) is calculated from (V=M/nominal GDP).

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Economics

Tuesday, April 21, 2009

UK RPI Deflation -0.4%, CPI Inflation 2.9% / Economics / Inflation

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleUK RPI Inflation data of minus 0.4% for March represents real deflation in the official data. Whilst the Governments preferred inflation measure CPI recorded a smaller decline to 2.9% which still puts it well above the Bank of England's target rate of 2%. RPI deflation is not so surprising given the panic interest rate cuts from 5% at the beginning of October 2008 to just 0.5% by the last cut of March 2009, these cuts in interest rates coupled with quantitative easing aka "money printing" to drive down long-term interest rates and hence mortgage rates is resulting in real deflation for those with large mortgages of as much as minus 5%, therefore is providing for mini 'temporary' cash flow boom for those mortgage holders that have secure employment during the recession.

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Economics

Sunday, April 19, 2009

Does Inflation Targeting Make Any Sense? / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleCalculated Risk has framed an interesting Inflation Debate Between Volcker vs. Kohn without weighing in on the matter. I will gladly weigh in, but first let's review the articles.

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Economics

Thursday, April 02, 2009

The Inflationary Depression, Peter Schiff Interviews Marc Faber / Economics / Inflation

By: LewRockwell

Best Financial Markets Analysis ArticleDr. Marc Faber runs his own business, Marc Faber Limited, which acts as an investment advisor and fund manager. He publishes a widely read monthly investment newsletters The Gloom Boom & Doom report which highlights unusual investment opportunities, and is the author of several books including Tomorrow's Gold – Asia's Age of Discovery which was first published in 2002 and highlights future investment opportunities around the world. Dr. Faber is also a regular contributor to several leading financial publications around the world. A book on Dr. Faber, Riding The Millennial Storm , by Nick Vittachi, was published in 1998. In late February, Euro Pacific President Peter Schiff interviewed the eminent economist Marc Faber by telephone from his office in Hong Kong.

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Economics

Friday, March 27, 2009

The Inescapable Inflationary Realities of Quantitative Easing and Economic Stimulus / Economics / Inflation

By: Ty_Andros

Diamond Rated - Best Financial Markets Analysis Article$14 million, million, or stated another way $14 trillion. The annual GDP of the US is approximately $14 trillion or $46,666 for every man, woman and child in the US - either way you view it, this is the INCONCEIVABLE amount that has been spent, printed or guaranteed since January 2007 in the US; it does not include the government machinations in other G7 countries. And what have you and your family received from that $46,666 per person? MOSTLY nothing and you will get mostly nothing from the next $46,000 and the next $46,000; ut you will get one thing from it: the bill.

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Economics

Thursday, March 26, 2009

Dear Chancellor: Inflationary Facts / Economics / Inflation

By: Adrian_Ash

Best Financial Markets Analysis ArticleA draft of this week's open letter – from Bank of England governor Mervyn King to UK chancellor Alistair Darling – which BullionVault found blowing down Threadneedle Street early Tuesday...

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Economics

Tuesday, March 24, 2009

Roadmap to Inflation And How to Protect Your Investments / Economics / Inflation

By: John_Mauldin

Diamond Rated - Best Financial Markets Analysis ArticleWhat happens when inflation once again returns. As this week's Outside the Box writer, James Montier, writes, we may want to start thinking now about inflation insurance and he mentions a few ways to do so. But this letter is a must read for his bringing to light a speech by Fed chairman Ben Bernanke in 2000 given to the Japanese, where he suggest inflation targeting:

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Economics

Sunday, March 22, 2009

Economic Crisis "The Worst Is Yet To Come!” / Economics / Inflation

By: David_Vaughn

Best Financial Markets Analysis ArticleWhat's happened to gold? Is it still out there? You better believe it is still out there and will continue to be “out there” and for a very long, long, time. What are the banking gurus predicting for gold?

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Interest-Rates

Friday, March 20, 2009

Fed Rings the Mother of all Inflationary Bells / Interest-Rates / Inflation

By: Peter_Schiff

Best Financial Markets Analysis ArticleThere is an old adage on Wall Street that no one rings a bell at major market tops or bottoms. That may be true in normal times, but as many have noticed, we are now completely through the looking glass. In this parallel reality, Ben Bernanke has just rung the loudest bell ever heard in the foreign exchange and government debt markets. Investors who ignore the clanging do so at their own peril. The bell's reverberations will be felt by everyday Americans, whose lives are about to change in ways few can imagine.

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Economics

Friday, March 20, 2009

Inflation- Central Banks Making Sure It Happens Everywhere / Economics / Inflation

By: Adrian_Ash

Best Financial Markets Analysis Article"Gold and the Euro just hooked up together again. But for how long depends on central-bank policy..."

SO BEN BERNANKE SAYS the United States has plunged into a deflationary depression.

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Economics

Friday, February 20, 2009

U.S. CPI Reverts from Deflation Back to Inflation Mode / Economics / Inflation

By: Andy_Sutton

Best Financial Markets Analysis ArticleFor the better part of the second half of 2008, the decision was an easy one. For the first 30 or so days of 2009, the decision remained easy. Then something changed. Something subtle, but at the same time worthy of our utmost attention. Producer and consumer prices began to climb off the mat and beginning in January 2009, there has been a rather remarkable turnaround. Granted, one month does not a trend make, but in this environment, big moves, which have become commonplace bear even more study when they reverse themselves on a dime.

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Economics

Wednesday, February 11, 2009

Deflation Is Here; Time to Protect Against Future Inflation? / Economics / Inflation

By: Money_and_Markets

Best Financial Markets Analysis ArticleNilus Mattive writes: It's clear that deflation has taken center stage in the U.S. economy. As I told my Dividend Superstars subscribers last month, you can see falling prices just about everywhere you look.

For example, the Consumer Price Index DROPPED 0.7% in December 2008. That's a marked departure from the gains we had been seeing. Even if you exclude food and gas prices, consumer prices were still flat for the month. What's more, the full-year data showed consumer prices rose a paltry 0.1% vs. a whopping 4.1% jump in 2007.

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Economics

Sunday, January 25, 2009

Is Big Inflation Coming? / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleAdam Hamilton at Zeal is predicting Big Inflation Coming .

The growing legions of deflationists see an unstoppable depression-like deflationary spiral approaching like a freight train. They cite some convincing data. The stock markets have been cut in half in just a year. In the past 6 months, some key commodities prices fell farther and faster than they did in the entire Great Depression. House prices are down by double digits across the nation, with no bottom in sight. And credit is a lot harder to come by today than in any other time in modern memory.

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Economics

Friday, January 23, 2009

Deflation Misconceptions and Inflationary Parabolic Money Supply Growth / Economics / Inflation

By: Zeal_LLC

Diamond Rated - Best Financial Markets Analysis ArticleLate 2008's stock panic has certainly had a complex and multifaceted impact on popular psychology. Mindsets and outlooks that were scoffed at as recently as 6 months ago have suddenly become fashionable. One of the more intriguing is the meteoric rise to prominence of the deflation thesis.

The growing legions of deflationists see an unstoppable depression-like deflationary spiral approaching like a freight train. They cite some convincing data. The stock markets have been cut in half in just a year. In the past 6 months, some key commodities prices fell farther and faster than they did in the entire Great Depression. House prices are down by double digits across the nation, with no bottom in sight. And credit is a lot harder to come by today than in any other time in modern memory.

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Economics

Wednesday, January 21, 2009

Why the Credit Crisis Bailouts Will Send Inflation Soaring / Economics / Inflation

By: Nick_Barisheff

Best Financial Markets Analysis ArticleThe US financial crisis has now spread across the globe. Years of easy credit created massive asset bubbles in the housing and financial services sectors. As bond fund manager Bill Gross points out, there was “too much exuberant leverage, not enough regulation; too strong a belief in asset-based prosperity, too little common sense that prices could go down as well as up; excessive “me first” greed, too little concern for the burden of future generations.”

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Economics

Tuesday, January 20, 2009

Is it Deflation yet, or is Hyperinflation on the way? / Economics / Inflation

By: Joseph_Toronto

Best Financial Markets Analysis ArticleLet's take a short detour to make sure we understand what inflation and deflation are. Milton Friedman, the father of the monetarist school of economics said that inflation is always and everywhere a monetary phenomenon. This is usually explained to the layman as “too much money chasing too few goods.”

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News_Letter

Thursday, January 08, 2009

UK Inflation Forecast 2009 / News_Letter / Inflation

By: NewsLetter

December 30th , 2008 Issue #43 Vol. 2

UK inflation for November as measured by the CPI continued its sharp decline, falling by 0.4% to 4.1% from the peak of 5.2% for Septembers data. The Bank of England would have been aware of the sharp fall in Octobers inflation at the earlier November MPC meeting that saw an near unprecedented panic interest rate cut of 1.5%, followed by a further 1% cut in December that has taken UK interest rates sharply lower from a peak of 5% in early October to stand at just 2% today. The interest rate cuts have been accompanied by BOE statements that UK economy is expected to contract by 2% GDP during 2009, that puts the UK on target to experience a worse recession than that of the early 1990's. However as my earlier analysis suggested that the UK could experience a decline of as much as 3% for 2009 which would make this recession just as bad if not worse than that of the early 1980's which wiped out much of Britain's manufacturing base.

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Economics

Friday, January 02, 2009

False Deflation Diagnosis and Gold Bullish Crossover Signal / Economics / Inflation

By: Jim_Willie_CB

Diamond Rated - Best Financial Markets Analysis ArticleOne of the most bothersome questions from 2005 to 2007 used to be whether the Untied States would ultimately submit to inflation or deflation. This is actually the wrong question. Many analysts in my view are incorrect in their conclusion that the US suffers from a powerful deflation episode, since they endorse the wrong definition, confuse effect with cause (as usual), do not properly monitor the money flow, and then draw improper conclusions from prices. They suffer from a type of Keynesian Tunnel Vision. They are confused, and fail to adapt certain key measures after the financial sector highjacked the entire national system in the last two decades.

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Economics

Friday, January 02, 2009

U.S. CPI Inflation Turning Negative, Deflation? / Economics / Inflation

By: Mike_Shedlock

Best Financial Markets Analysis Article" Owners' Equivalent Rent " (OER) is the largest component in the government measure of the Consumer Price Index (CPI). OER is a process in which the BEA estimates what it would cost if owners were to rent the homes they own from themselves. I do not believe this to be a valid pricing barometer.

By ignoring housing prices, CPI massively understated inflation for years. The CPI is massively overstating inflation now.

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