Category: Inflation
The analysis published under this category are as follows.
Sunday, March 22, 2009
Economic Crisis "The Worst Is Yet To Come!” / Economics / Inflation
By: David_Vaughn
What'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? Read full article... Read full article...
Friday, March 20, 2009
Fed Rings the Mother of all Inflationary Bells / Interest-Rates / Inflation
By: Peter_Schiff
There 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.Read full article... Read full article...
Friday, March 20, 2009
Inflation- Central Banks Making Sure It Happens Everywhere / Economics / Inflation
By: Adrian_Ash
"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.
Read full article... Read full article...
Friday, February 20, 2009
U.S. CPI Reverts from Deflation Back to Inflation Mode / Economics / Inflation
By: Andy_Sutton
For 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. Read full article... Read full article...
Wednesday, February 11, 2009
Deflation Is Here; Time to Protect Against Future Inflation? / Economics / Inflation
By: Money_and_Markets
Nilus 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.
Read full article... Read full article...
Sunday, January 25, 2009
Is Big Inflation Coming? / Economics / Inflation
By: Mike_Shedlock
Adam 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.
Read full article... Read full article...
Friday, January 23, 2009
Deflation Misconceptions and Inflationary Parabolic Money Supply Growth / Economics / Inflation
By: Zeal_LLC
Late 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.
Read full article... Read full article...
Wednesday, January 21, 2009
Why the Credit Crisis Bailouts Will Send Inflation Soaring / Economics / Inflation
By: Nick_Barisheff
The 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.” Read full article... Read full article...
Tuesday, January 20, 2009
Is it Deflation yet, or is Hyperinflation on the way? / Economics / Inflation
By: Joseph_Toronto
Let'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.” Read full article... Read full article...
Thursday, January 08, 2009
UK Inflation Forecast 2009 / News_Letter / Inflation
By: NewsLetter
December 30th , 2008 Issue #43 Vol. 2UK 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.
Read full article... Read full article...
Friday, January 02, 2009
False Deflation Diagnosis and Gold Bullish Crossover Signal / Economics / Inflation
By: Jim_Willie_CB
One 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. Read full article... Read full article...
Friday, January 02, 2009
U.S. CPI Inflation Turning Negative, Deflation? / Economics / Inflation
By: Mike_Shedlock
" 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.
Read full article... Read full article...
Thursday, December 18, 2008
UK Inflation CPI Slumps to 4.1% Whilst RPI Crashes to 3% / Economics / Inflation
By: Nadeem_Walayat
UK inflation as measured by the CPI continued its sharp fall following Octobers slump from 5.2% to 4.5% by falling in November by 0.4% to 4.1%. This follows hard on the heels of the Bank of England's continuing panic interest rate cuts that saw another 1% sliced off of the UK base rate at Decembers MPC meeting to 2% as the UK remains on target to experience a recession just as bad as that of the early 1980's. Meanwhile the RPI inflation measure crashed by 1.2%, falling from 4.2% to 3% as increasingly the RPI measure heads for true deflation during 2009 i.e. negative inflation. Read full article... Read full article...
Friday, December 12, 2008
Government Flood of Treasury Obligations Telegraphing Inflation / Interest-Rates / Inflation
By: Peter_Schiff
A Nightmare Before Christmas - Like many pragmatic economists I have always warned that rapid expansions of government debt would result in inflation and higher interest rates. The explanation was always simple: rising supply of government debt inflates the money supply and weakens the government’s ability to service its debt through legitimate means.Read full article... Read full article...
Monday, December 08, 2008
Real Threat is Inflation Not Deflation / Economics / Inflation
By: Money_Morning
Keith Fitz-Gerald writes: We're “officially” in a recession and the panicky markets are bracing for deflation. But what most investors don't realize is that inflation – not deflation – is the real threat that they face.
For more than a year now, I've been telling readers and attendees at financial conferences around the world that the United States has been in a recession since last November.
Read full article... Read full article...
Wednesday, November 26, 2008
Failed Fiat Monetary System Heading for Rampant Inflation / Economics / Inflation
By: Clive_Maund
Paulson's favorite song: "I wish it could be Christmas every day" - well it can be thanks to the Fiat money system...
So the trough is about to be refilled, this time with even more feed - $800 billion to be precise. Thanks to the Fiat money system this extra liquidity can simply be created out of thin air, all it takes is a few keystrokes. The cost could be passed on to the taxpayer via higher taxes, but they might balk at this so it's better to stealthily get them to pay for it by diluting the purchasing power of their money.
Read full article... Read full article...
Thursday, November 20, 2008
Falling Consumer Prices Good or Bad News for Consumers? / Economics / Inflation
By: Paul_L_Kasriel
Thursday the BLS reported that the Consumer Price Index (CPI) fell by 1.0% both seasonally adjusted as well as unadjusted. On an unadjusted basis, this was the largest monthly decline in the CPI since January 1938 (see Chart 1). Some journalists and some economists are exclaiming that these falling consumer prices are "good" for consumers. Are they? Read full article... Read full article...
Thursday, November 20, 2008
Explanation of the Price Effects of Inflation and Deflation / Economics / Inflation
By: EWI
The U.S. Labor Department reported a 1 percent drop in the consumer price index for October 2008. The drop marked the largest decline in 61 years, and it was the first decline in that measure in nearly a quarter of a century. The 1 percent drop was twice as large as many mainstream analysts had forecast. Such a large decline in consumer prices is forcing U.S. policymakers to rethink the possibility of deflation in America. For more on deflation, we turn to Robert Prechter, the man who literally wrote a book on how to survive it.Read full article... Read full article...
Wednesday, November 19, 2008
U.S. Consumer Price Index (CPI) Largest Decline Since 1947 / Economics / Inflation
By: Joseph_Brusuelas
The October estimate of consumer price index declined -1.0% (-0.961%) m/m and was up 3.7% y/y. The core ex-food and energy estimate fell -0.1%(-0.071%) m/m and is up 2.2%. The ex-food estimate saw a sharp drop of -1.2% m/m and the ex-energy component was flat for the month. Energy prices dropped -8.6% and prices in the services sector were also flat for the month.Read full article... Read full article...
Tuesday, November 18, 2008
Producer Price Inflation Biggest Drop On Record / Economics / Inflation
By: Mike_Shedlock
Bloomberg is reporting Producer Prices Fall Most on Record . Yields on 10-year notes touched the lowest in more than three weeks as a slumping economy raised the specter of deflation. Oil reached a 22-month low. China surpassed Japan as the largest foreign holder of Treasuries, easing concern that global investors will stop buying U.S. debt as the government funds a record budget deficit.
Read full article... Read full article...