Category: Inflation
The analysis published under this category are as follows.
Wednesday, June 16, 2010
The Inflation Mega-Trend Continues With UK CPI 3.4%, RPI 5.1% / Economics / Inflation
By: Nadeem_Walayat
Another 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.
Tuesday, June 15, 2010
High UK Inflation Continues to Punish Savers With Negtive Real Interest Rates / Economics / Inflation
By: MoneyFacts
Inflation 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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Tuesday, June 15, 2010
Inflation Corroded Copper Coins / Economics / Inflation
By: LewRockwell
Richard 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!
Tuesday, June 15, 2010
Government Quest to Buy Inflation, Print Baby Print / Economics / Inflation
By: John_Mauldin
This 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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Sunday, June 13, 2010
Deflation? Try a Tale of Two Inflations / Economics / Inflation
By: Dian_L_Chu
The 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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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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Wednesday, May 26, 2010
U.S. Inflation Prospects / Economics / Inflation
By: Hans_Wagner
Inflation 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.
Wednesday, May 19, 2010
George Osbourne's Full Reply to Mervyn King's UK Inflation Letter / Economics / Inflation
By: Nadeem_Walayat
The 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%).
Wednesday, May 19, 2010
Bank of England Governor Mervyn King's UK Inflation Letter Full Text / Economics / Inflation
By: Nadeem_Walayat
The 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%)
Tuesday, May 18, 2010
Inflation Destroys Savings / Economics / Inflation
By: MISES
Everything 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.
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
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).
Wednesday, May 12, 2010
Inflation Is A Positive Development for the Astute Investor / Stock-Markets / Inflation
By: Sol_Palha
"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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Wednesday, May 05, 2010
Greece Economic Depression Resulting in INFLATION NOT DEFLATION Surge / Economics / Inflation
By: Nadeem_Walayat
Greece, 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.
Wednesday, April 28, 2010
The “V” Shaped Recovery in Inflation / Economics / Inflation
By: Michael_Pento
A 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.
Monday, April 26, 2010
Washington Detached From Reality Producing Phony Inflation Statistics / Economics / Inflation
By: Larry_Edelson
Our 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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Sunday, April 25, 2010
Inflation or Deflation, What to Do and When to Act / Economics / Inflation
By: Gary_North
Have 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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Thursday, April 22, 2010
Teaching Inflation / Economics / Inflation
By: MISES
Hunt 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.
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
UK 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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Saturday, April 17, 2010
Trying to Beat the Rate of Inflation With Your Savings? / Interest-Rates / Inflation
By: Adrian_Ash
What 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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Monday, April 12, 2010
Why UK Inflation Will Increase in 2010 / Economics / Inflation
By: John_Cardy
The '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:Read full article... Read full article...