Macro Economics

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Mass Inflation, Yes; Hyperinflation, No

Sep 14th, 2011 | By | Category: Macro Economics
The United States is not going to get hyperinflation unless Congress nationalizes the Federal Reserve System. It will get mass inflation at some point: anywhere from 15% per annum to 30%. But it is not going to get 50% or 100% or more. Why not? 1. The temporary nature of the payoff 2. The ...read more

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Posted in Macro Economics | 2 comments


The Economy’s Bureaucratic Enemy

Sep 13th, 2011 | By | Category: Macro Economics
The global finance bureaucracy is clueless. Its policies are failing. Yet it's not giving up. Nowhere near it! The same tired, idiotic explanations for what is wrong with the economy and what the economy needs are regurgitated with numbing persistence: The economy is in need of more -- wait for ...read more

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Posted in Macro Economics | No Comments »


Why Policy Advise Is Futile And What You Should Do Instead

Sep 7th, 2011 | By | Category: Featured, Macro Economics
Paper money collapse is inevitable. Our present system of elastic money is not only suboptimal it is also unsustainable. As I show in my book elastic money must lead to the accumulation of imbalances, to capital misallocations, and to resource mis-pricings. Those must lead, over time, to economic disintegration and ...read more

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Posted in Featured, Macro Economics | 8 comments


You Can’t Eat Asset Allocation Either

Aug 19th, 2011 | By | Category: Featured, Gold, Macro Economics, Personal Investing
Let us look at some awful analysis of gold, courtesy of Wells Fargo Bank. Perhaps channelling their inner Michael Pascoe, the bank’s analysts told clients, “Interest in gold investing has reached the level of a speculative bubble.” Having thus be-clowned themselves, they went on to elaborate: gold prices are volatile, gold ...read more

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Posted in Featured, Gold, Macro Economics, Personal Investing | 2 comments


The Bernanke Blind Side

Aug 15th, 2011 | By | Category: Featured, Macro Economics
You want to know what really scares me? That the money-printer-in-chief -- the man in charge of the printing press for the world's dominant paper currency -- the chairman of the U.S. Fed is so completely beholden to the mainstream macro consensus that he is entirely incapable of even comprehending ...read more

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Posted in Featured, Macro Economics | 1 Comment »


End This Agony, Part II

Aug 12th, 2011 | By | Category: Economics, Featured, Macro Economics
There are two main explanations for how a smart guy like Krugman (and other sharp guys desiring more inflation, such as Tyler Cowen) can hold the views they do without their heads exploding. First, if one's model suggests that the solution to high unemployment and sluggish GDP growth is to boost ...read more

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Posted in Economics, Featured, Macro Economics | 10 comments


End This Agony, Part I

Aug 10th, 2011 | By | Category: Economics, Featured, Macro Economics
In the wake of the stock-market plunge and S&P downgrade, economic pundits of all stripes are rushing to explain events. But as so often happens in economics, "believing is seeing." Keynesians, monetarists, and Austrians can all look at the slow-motion train wreck and feel vindicated by the data. Of the major ...read more

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Posted in Economics, Featured, Macro Economics | 3 comments


Why Is the Stock Market Crashing?

Aug 8th, 2011 | By | Category: Economics, Featured, Macro Economics
Investors the world over are still reeling from last Thursday's massive plunge in the US equity markets, in which the major indices all gave up more than 4 percent. It was the worst day for the US stock market since December 2008. [And today's markets are down over 4% again.--Ed.] None ...read more

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Posted in Economics, Featured, Macro Economics | 1 Comment »


Digitized Money Inflation

Aug 5th, 2011 | By | Category: Featured, Macro Economics, Politics
In preparing for class this past spring, I encountered a video on the Fed's website that obfuscates the fact that the Fed prints money. The six-minute video (posted in January 2011) features economist Steve Meyer, senior advisor to the Federal Reserve Board of Governors. In discussing the Fed's most recent expansion, ...read more

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Posted in Featured, Macro Economics, Politics | 3 comments


The Gold Standard Cannot Survive Political Logic

Jul 11th, 2011 | By | Category: Featured, Gold, Macro Economics, Politics
Publisher Steve Forbes, speaking to Human Events predicted "a return to the gold standard by the United states within the next five years". Why? Because it would "help the nation solve a variety of economic, fiscal, and monetary ills". The article continues: Such a move would help to stabilize the value of ...read more

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Posted in Featured, Gold, Macro Economics, Politics | 7 comments


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