Category: Inflation
The analysis published under this category are as follows.
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.
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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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.
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.
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.
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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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..."
Read full article... Read full article...-Wilhelm Röpke, Crises and Cycles, 1936
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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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.
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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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.
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.
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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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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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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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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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
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.
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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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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