Category: Inflation
The analysis published under this category are as follows.
Wednesday, March 19, 2008
UK Inflation CPI Rises to 2.5% for 2009 UK Election? / Economics / Inflation
By: Nadeem_Walayat
UK Inflation as measured by the CPI Index rose to 2.5% for February, however the rise was wholly due to a change in the way the index is calculated without which the CPI would probably have remained unchanged. The more accepted RPI inflation index remained unchanged at 4.1%. Therefore the artificial boost to the CPI suggests the intention for the creation of a spike in UK CPI inflation now which will leave the indices in 12 months time, thus resulting in a drop in CPI inflation and hence have the prospects for interest rate cuts in the lead up to the summer of 2009, which could present Gordon Brown with an ideal opportunity to go to the polls.Read full article... Read full article...
Friday, March 14, 2008
US CPI Inflation Falls to 4%- Flashes Deflation Warning to Commodity Bulls Towards 2008 End / Economics / Inflation
By: Nadeem_Walayat
US CPI Inflation came in flat for February, confounding consensus forecasts that called for a rise of 0.2%. Annualised CPI falls to 4% from 4.3% and is inline with my overall expectations as highlighted in the extensive article of 2nd March 08 - Credit Crisis Morphs Into Stagflation- Protect Your Wealth! Which concluded that deflationary forces would take hold towards the end of 2008 as illustrated by the graph below -Read full article... Read full article...
Thursday, March 06, 2008
Devaluation of Your Savings - When Cash is Trash, Part II / Personal_Finance / Inflation
By: Money_and_Markets
When I wrote Part I of "When Cash is Trash" just three months ago — colleagues, investors, even friends and family told me I was nuts. "How can you go wrong with keeping most of your money safe in cash?" they asked.
"Safe?" I replied. "Give me a break!" Cash is like any other investment — its value goes up and down relative to other assets. Back then I said the current environment made cash just about the worst investment to hold on to. And, today, I still believe that.
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Friday, February 29, 2008
Loss of Confidence in the US Fed / Interest-Rates / Inflation
By: Peter_Schiff
Hear Me Now - Believe Me Later - Having neither the will nor the means to confront our major economic challenges, Washington is instead hanging its hopes on words alone. This week, despite the clearest signs yet that the dollar is in critical condition, President Bush and Treasury Secretary Paulson tried to provide reassurance by once again invoking the name of the mythical “strong dollar policy”. Meanwhile across town, with the latest crop of inflation figures pointing to the greatest price surges in a generation, Fed Chairman Ben Bernanke tried to do the Administration one better by insisting that inflation expectations remained “well anchored”, and that stagflation was nowhere in sight. Read full article... Read full article...
Tuesday, February 26, 2008
How to Grow Your Investments in an Inflationary Environment / Economics / Inflation
By: Money_and_Markets
Tony Sagami writes: I got my first taste of inflation in 1973, shortly after I got my driver's license.
Gasoline was 25 cents a gallon when I first started driving, and I was busy enjoying the freedom and independence that an automobile gives a teenage boy.
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Friday, February 22, 2008
Fed Interest Rate Cuts have Resulted in Surging Commodity Price Inflation / Interest-Rates / Inflation
By: Adrian_Ash
Six Months of Fun, Fun, Fun from the Fed - "...If Bernanke was expecting a 13% rise on Wall Street, he's got a 45% rise in gold instead – plus a real disaster in US Treasury bond yields..."
THIS WEEK marked the six-month anniversary of the Fed's first cut to US interest rates during the current world banking crisis.
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Friday, February 22, 2008
Inflation- The Elephant in the Room / Economics / Inflation
By: Money_and_Markets
"The elephant in the room" ... I love that expression. After all, my two little girls enjoy watching the elephants at Lion Country Safari, and they'd love to see 'em show up in the living room.
But right now, the real five-ton elephant in the room is inflation. And no one at the Federal Reserve really seems to want to confront it!
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Thursday, February 21, 2008
US Imports Inflation From China - Use Agri-Foods to Protect Your Wealth! / Economics / Inflation
By: Ned_W_Schmidt
Waving a magic wand and making speeches does not prevent reality from creeping into statistics. Per the FRB-Cleveland, the U.S. inflation trend is as shown in the following table.Read full article... Read full article...
Saturday, February 09, 2008
US Recession WIll Kill Inflation - Lies to Destroy the Value of Your Money / Economics / Inflation
By: Adrian_Ash
"...The US recession is sure to send inflation to zero – just like it didn't in four of the last five recessions..."
WORRIED ABOUT INFLATION...? Oh stop your carping and set an extra place at dinner for the fast-looming recession instead.
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Wednesday, February 06, 2008
Reasons Why the US Bond Market is Wrong on Inflation / Interest-Rates / Inflation
By: Michael_Pento
There is no shortage of market gurus on Wall St. who will tell you that inflation is low. The main evidence for their argument stems from the relatively low rates on Treasury bond yields and the narrow spreads on inflation protection securities know as TIPS. Whereas I believe the currently low yields on Treasury debt to be explainable, it is very dangerous to draw the wrong conclusion about inflation from bonds' elevated prices. Read full article... Read full article...
Thursday, January 31, 2008
US Housing Market's a Mess, But Don't Fight the Fed's Determination to Re-flate Asset Prices / Housing-Market / Inflation
By: Michael_Pento
It has been two years since the bursting of the housing bubble began, but we can still hear a plethora of lunacy spewed from market pundits regarding the future of this key part of the economy. After hearing that home prices would never decline, we now hear that real estate is a very small part of our economy. Last week, Mike Norman, of the Economic Contrarian Update, was part of a panel debating the future of the economy and housing and he said that inventory of unsold homes would soon fall dramatically.Read full article... Read full article...
Tuesday, January 15, 2008
The Bush $100 Billion Hyper-Inflationary Stimulus Package / Economics / Inflation
By: Mike_Whitney
In the next couple of weeks, George Bush will prove that the last 30 years of supply side, free market economics was nothing more than a overripe pile of horse manure. In fact, right now, the B-52s are being loaded with pallets-full of freshly-minted hundred dollar bills which will be air-dropped “from sea to shining sea” as soon as King George gives the nod.Read full article... Read full article...
Thursday, January 10, 2008
Central Banks Facing Stagflation - Bullish Gold, Currencies and Crude Oil / Economics / Inflation
By: Christopher_Laird
One of the main reasons gold is rising so much now is because central banks are facing stagflationary forces. Stagflation is a combination of economic stagnation with inflation. Central banks find it hard to lower interest rates because of inflation, and economic stagnation causes them to want to lower interest rates. This is very gold and oil bullish.
Many of the causes of gold's rise in the late 70's and 1980 are with us today. But let's first define stagflation:
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Saturday, January 05, 2008
BIG BEN - US Fed Inflation Slight of Hand / Economics / Inflation
By: David_Petch
Big Ben is the largest standing four faced chiming clock in the world and is known for its remarkable accuracy due in part to Edmond Beckett Denison who invented the double three-legged gravity escapement added to the original mechanism. The mechanism was created in advance of completing the masonry and final tower assembly, which is where Edmond found spare time for his improvement. Read full article... Read full article...
Thursday, December 20, 2007
Global Inflation Surge Fueled by Explosive Money Supply Growth / Economics / Inflation
By: Gary_Dorsch
The worst is yet to come for the global banking system, which faces potential losses of more than half-trillion dollars from investments in toxic sub-prime US mortgage debt. “The problems in the financial sector remain with us,” said Bank of England chief Mervyn King on Nov 19 th . “A painful adjustment faces the global banking sector over the next few months as losses are revealed and new capital is raised to repair bank balance sheets,” he said.
To defuse the crisis, the Fed, the European Central Bank, and the Bank of England are pumping enormous sums of money into the banking system, at below market interest rates, to prevent a “credit crunch” from triggering a global stock market meltdown. “Central banks are working together to forestall any sharp tightening in credit conditions that might lead to a downturn around the world,” King declared.
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Thursday, December 20, 2007
Public Losing Confidence in Official Inflation Statistics - Inflation Brainwashing Starting to Backfire / Economics / Inflation
By: Money_and_Markets
Larry Edelson writes:On at least three occasions over the last couple of years I warned you that inflation was already running at about 7%-10%.
It was a no-brainer. Like you, I experienced rising prices every time I went to the gas pump ... to the grocery store ... paid an insurance bill ... wrote a check for my kids' college tuition ... or bought new clothes.
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Wednesday, December 19, 2007
US CPI Inflation Statistics Manipulation and Deception? / Economics / Inflation
By: Ronald_R_Cooke
CPI: Sophisticated Economic Theory, Terrible Ethics
Is Institutional Deception Embedded In Public Policy?
Introduction
In late November, 2007, the Commerce Department’s Bureau of Economic Analysis (BEA) announced the United States had achieved a third quarter real Gross Domestic Product (GDP) gain of 4.9 percent. The price index for gross domestic purchases, which (theoretically) measures prices paid by U.S. residents, increased 1.6 percent in the third quarter.
Tuesday, December 18, 2007
UK November Inflation Drifts Higher - CPI 2.1%, RPI 4.3% / Economics / Inflation
By: Nadeem_Walayat
Figures for November show that inflation remained steady in terms of the CPI at 2.1%, whilst the more widely recognised RPI measure rose to 4.3% from 4.2% last month. The ONS sited rising food prices offset by falling gas and electricity prices.The movements are inline with the Market Oracle forecast for inflation to drift higher into a January 2008 peak.Read full article... Read full article...
Tuesday, December 18, 2007
US Inflation Soars - Largest Rise in Producer Prices Since 1973! / Economics / Inflation
By: Money_and_Markets
Martin Weiss writes: Suddenly and without warning, price inflation — long ignored and forever understated — has burst onto the American scene with the force of a cat-5 hurricane.
The November jump in the U.S. Producer Price Index has exceeded the largest single-month rises of the Bush 2000s ... the Clinton '90s ... the Reagan '80s ... and even the Carter '70s. It's the worst bout of wholesale price inflation since the aftermath of the 1973 Arab oil embargo.
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Monday, December 17, 2007
Hyper-inflationary Paper Promises Poised On Precarious Perch / Stock-Markets / Inflation
By: Captain_Hook
Whether it be due to a global currency crisis , it's effects , or because worse is yet to come , no matter, the ever-growing hyperinflationary mountain of paper promises is precariously perched on the edge of a precipice ready to fall, and in doing so; such an event would accelerate the end of the US Dollar ($) empire, along with its dominance in world affairs and trade . And no amount of fairy tales or interventions will be able to halt the $'s slide from prominence – nothing. This is becoming more evident in the fact the credit crisis is now spreading to Asia , where the stock markets have become destabilized. Read full article... Read full article...