Category: Inflation
The analysis published under this category are as follows.
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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Friday, November 05, 2010
From QE2 To Economic Titanic, The Global Asset Inflation Surge / Economics / Inflation
By: Andrew_McKillop
Ben 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.
Thursday, November 04, 2010
John Locke vs. the Mercantilists and Inflationists / Economics / Inflation
By: Murray_N_Rothbard
From 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.
Friday, October 29, 2010
Loss of Dollar Purchasing Power, The True Fed Inflation Targeting Bullseye / Economics / Inflation
By: Richard_Daughty
When 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.
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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Tuesday, October 26, 2010
Should the Fed Be Concerned about Low Price Inflation? / Economics / Inflation
By: Frank_Shostak
In 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,
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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Friday, October 22, 2010
The U.S. Dollar is Doomed, High Inflation then Hyper-Inflation / Economics / Inflation
By: Puru_Saxena
Austerity 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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Monday, October 18, 2010
Financial Markets Expect QE2 to Result in Higher Inflation / Economics / Inflation
By: Asha_Bangalore
Inflation 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).
Saturday, October 16, 2010
Reflation Trade Is Overdone, No Pickup in Inflation / Economics / Inflation
By: Bryan_Rich
In 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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Friday, October 15, 2010
How to Hedge Yourself from the Coming Fed Inflation Disaster / Stock-Markets / Inflation
By: DailyWealth
Porter 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.
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
My 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.
Wednesday, October 13, 2010
Bank of England Prepares to Print Money Despite High Inflation at CPI 3.1% / Economics / Inflation
By: Nadeem_Walayat
UK 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.
Tuesday, October 12, 2010
What the Texas State Fair Taught Me About Inflation / Commodities / Inflation
By: Jared_Levy
I 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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Tuesday, October 12, 2010
Will 2011 be Another Stagnant Year for Cost of Living Adjusted Social Security Checks? / Politics / Inflation
By: Nilus_Mattive
In 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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Monday, October 11, 2010
Fed Mandates Inflation Creation / Economics / Inflation
By: Peter_Schiff
Much 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.
Wednesday, October 06, 2010
Bernanke To Light the Fuse on Monetary Inflation Bomb / Economics / Inflation
By: Gary_North
It 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.
Monday, October 04, 2010
Consumer Price Index (CPI), A Standard of Living Problem / Economics / Inflation
By: Chris_Riley
The 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.
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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Tuesday, September 21, 2010
Inflationary Understatement / Economics / Inflation
By: Richard_Daughty
The 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."