Category: Inflation
The analysis published under this category are as follows.
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:
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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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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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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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.
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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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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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.
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.
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.
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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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.
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.”
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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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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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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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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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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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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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.