Hyperinflation – where is it?
Keith Fitz-gerald (Whiskey & Gunpowder):
Everything we know about classic economic theory suggests the U.S. economy should be experiencing Zimbabwe-like hyperinflation right now, thanks to the nearly $2.2 trillion the U.S. Federal Reserve has pumped into the system.
But we’re not…yet.
Classic economic theory says that money supply can be used to stimulate the economy and our central bankers seem to agree. That’s why they’ve pumped more than $1 trillion dollars into the economy, engineered countless bailout bonanzas for zombie institutions, put Detroit on life support, and delivered a bunch of financial Band-Aids to the trauma ward — all in a desperate bid to make Americans feel better about the global financial crisis.
To their way of thinking, the trillions of dollars have been…
Hyperinflation – where is it?
Keith Fitz-gerald (Whiskey & Gunpowder):
Everything we know about classic economic theory suggests the U.S. economy should be experiencing Zimbabwe-like hyperinflation right now, thanks to the nearly $2.2 trillion the U.S. Federal Reserve has pumped into the system.
But we’re not…yet.
Classic economic theory says that money supply can be used to stimulate the economy and our central bankers seem to agree. That’s why they’ve pumped more than $1 trillion dollars into the economy, engineered countless bailout bonanzas for zombie institutions, put Detroit on life support, and delivered a bunch of financial Band-Aids to the trauma ward — all in a desperate bid to make Americans feel better about the global financial crisis.
To their way of thinking, the trillions of dollars have been…
The Great Depression Ahead How to Prosper in the Crash Following the Greatest Boom in History
The Great Depression Ahead How to Prosper in the Crash Following the Greatest Boom in History
The [...]
Old-fashioned commodities; old-fashioned strength
Chris Mayer (Penny Sleuth):
“If you can tell me something else where the fundamentals are so attractive…I’d be happy to put my money there,” said Jim Rogers, the famed investor and self-made billionaire in a recent interview. “But I don’t know of any other place.”
What’s he talking about? Today, we take a look and invest right alongside his idea. And it should start to pay off with the arrival of the first swallows of spring in 2010. It’s also timely now — in this weak-kneed economy — because it has traditionally held up well even in when the economy is on the ropes. Even the Great Depression couldn’t put this thing down.
We start with simple truths. The world’s population has more…
Old-fashioned commodities; old-fashioned strength
Chris Mayer (Penny Sleuth):
“If you can tell me something else where the fundamentals are so attractive…I’d be happy to put my money there,” said Jim Rogers, the famed investor and self-made billionaire in a recent interview. “But I don’t know of any other place.”
What’s he talking about? Today, we take a look and invest right alongside his idea. And it should start to pay off with the arrival of the first swallows of spring in 2010. It’s also timely now — in this weak-kneed economy — because it has traditionally held up well even in when the economy is on the ropes. Even the Great Depression couldn’t put this thing down.
We start with simple truths. The world’s population has more…
The best way to get through a debt crisis?
What’s the best way to get through a debt crisis? Straight through was our advice last week. For at least a thousand years, the business cycle went round and round without help from central bankers or economists. It is only since these geniuses have been on the case that really serious problems have arisen. The Panic of 1920 – in which the US government did nothing but cut taxes and spending – was quickly forgotten. The Panic of 1929, on the other hand, was followed by massive rigging and jiving by the authorities. It took 20 years and a world war to overcome; today it is still remembered today as the Great Depression.
Martin Wolf, speaking, gravely, for the world’s intelligentsia…
Getting Off Track How Government Actions and Interventions Caused Prolonged and Worsened the Financial Crisis Hoover Institution Press Publication
Getting Off Track How Government Actions and Interventions Caused Prolonged and Worsened the Financial Crisis Hoover Institution Press Publication
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Harry Dent: Bold Predictions of the Great Depression Ahead
As they said in the movie “Poltergeist”: “They’re baaa-aaack.”
Who’s back? Harry Dent, the self-styled “economic futurist,” who presumes to tell us about the great economic booms and busts that lie ahead.
How can he possibly know these things?
According to Dent, an analysis of the “highly predictable” nature of consumer spending based on demographic trends – increasing spending during child-rearing years, peak spending as the kids leave home and slower spending during late work and retirement – reveals what lies ahead for the economy and the stock market…
Harry Dent: Dow 44,000 & Other Flimsy Forecasts
Harry Dent is a man worth listening to. After all, he has a near perfect track record – as a contrary indicator…
For example:
- With less than auspicious timing, Dent…
US GDP is Irrelevant
The American economy contracted only 0.7% in the second quarter, the government finalized today. That’s down from its previous projection of 1% and practically seals the deal for a positive GDP number when Uncle Sam gives his initial third-quarter guess in late October.
Still, this is the fourth consecutive official drop in GDP — the longest U.S. economic losing streak since records began in 1947. The economy has contracted 3.8% since then, the deepest pullback since the Great Depression.
Paging through the fine print, there’s only one outlier — one segment of blockbuster growth while the rest of the economy muddles through, at best: federal government spending, up 11.4%.
“In some ways, the whole GDP discussion is irrelevant,” says Chris Mayer. “As investors,…
Removing housing’s life line
The program that gives first-time home buyers an $8,000 tax credit is due to expire at the end of November.
The Federal Reserve will talk about winding down its buying of mortgage-backed securities in its two-day meeting this week.
Will that be the e…
Stocks shoot higher. What’s next?
This week is one for the history books. The S&P 500 closed more than 20% above its 200-day moving average Wednesday, Bespoke Investment Group reports.That hasn’t happened since May 1983. And, surprisingly, just six months ago the index was the most…
Did the stimulus save a million jobs?
Say what you will about the Obama Administration’s decision to spend $787 billion to revive the economy. According to its Council of Economic Advisors, which is headed by Berkeley economist and Great Depression expert Christina Romer, it has sav…
The Credit Rating Firms Are Running Scared – It’s About Time
When it comes to the U.S. credit crisis, we’ve all heard the numbers. The stock market decline wiped out $7 trillion in shareholder wealth. It forced the federal government to commit to $11.6 trillion in bailout programs and stimulus spending. And it’s led to the longest U.S. downturn since the Great Depression.
Everyone also knows that some of the key culprits behind this financial mess were the credit-rating firms like Standard & Poor’s and Moody’s Investors Service, which assigned top-tier “AAA” ratings to investments that were actually backed by subprime mortgages and other toxic debt.
Whether it was collusion or incompetence almost didn’t matter: The firms claimed that the credit ratings they issued were constitutionally protected free speech. With this First Amendment shield, S&P,…