Posts Tagged ‘ deflation ’

It’s The Central Banks, You Dumb Kids

Oct 25th, 2011 | By | Category: Economics, Featured, Macro Economics
Today, we relented and stopped into a Starbucks this morning for a sandwich and coffee. A realization hit us. We'd been in Seattle -- the home of Starbucks -- for two weeks, just a block south of a Starbucks. Yet we hadn't taken advantage of it! We had never commandeered a ...read more


Inflation Is Already Here with Lots More to Come

Oct 29th, 2010 | By | Category: Featured, Macro Economics
If Paul Revere were around, maybe he’d get on his horse and start yelling, “Inflation is coming! Inflation is coming!” I think it is coming. In fact, in many ways, it’s already here, just not yet widely recognized. The deflationists still hold sway in the bond market, where investors happily accept ...read more


Is Deflation Looking to Pop the Gold Bubble?

Aug 16th, 2010 | By | Category: Featured, Gold
If Goldman Sachs is publicly bullish on gold, is that a good thing or bad thing for gold bulls? Wall Street's notorious trading house published a report on gold last week setting a price target of US$1,300 in the next six months. The report cited several factors. But before we get ...read more


Gold Is an Inflation-Proof Deflation Hedge

Jun 3rd, 2010 | By | Category: Featured, Gold
Knowing how governments will respond to deflation, the case for inflation-proof gold looks increasingly clear to cautious wealth... Useless for pretty much everything except storing wealth (its economic value is social, not industrial), gold acts as inflation-proof money when investors need it most — right in the middle of an ...read more


Bernanke Versus Deflationary Collapse

Jan 27th, 2010 | By | Category: Featured, Macro Economics
L: So, Ben Bernanke just got named ”Person of the Year” by Time magazine. I know you must have some thoughts in response to this auspicious event? Doug: I just don’t know where they find these people... On the other hand, Slime magazine has always said that those named Person of ...read more


Dubai Malinvestment Outdoes U.S.

Dec 2nd, 2009 | By | Category: Featured, International, Macro Economics
"While Dubai is not big enough to set off financial repercussions outside the Middle East, the main fear is that investors could flee risky markets all at once in search of safer havens for their money." — The NYT, Vikas Bajaj and Graham Bowley, reporting. Apart from the stark self-contradiction in ...read more


Who Needs a Central Bank?

Oct 15th, 2009 | By | Category: Featured, Macro Economics
“Recovery is here!” the Pollyannas shout. “This is the first sign. And soon all nations will be following with their rate increases.” They talking, of course, about the Australians decision to hike their central bank index rate. And instantly the howls of recovery were on the lips of all the pundits. But ...read more


Inflation, Deflation, Peak Oil and Complex Systems

Sep 29th, 2009 | By | Category: Featured, Macro Economics
In my father's house are many mansions. Surely one of them has a room with no elephants in it.... Not to crunch too many metaphors right here at the top, but a consensus seems to be firming up in the animate jello of the Internet that we have entered the Season ...read more


Gold and Deflation: A Trick Question

Jun 29th, 2009 | By | Category: Featured, Gold
"Legally defining the official dollar/gold price and backing it with convertibility is the only means by which...the markets can be assured that Volcker's successors would not be tempted to try another monetarist experiment." -Jude Wanniski, former Reagan advisor, April 1982 So does the price of gold rise or fall in a deflation? Hint: ...read more


Gold: The Best Insurance Against Inflation and Deflation

May 18th, 2009 | By | Category: Featured, Gold
Whether inflation or deflation strikes, a growing number of people are fast buying gold for defence... It’s common knowledge that gold bullion proved the most reliable wealth-store during the vicious inflation of the late 1970s. Yet almost un-noticed, gold has once again been the best-performing asset bar none this decade, too. Gold ...read more