The market clearly is not worried about inflation right now. That is the only way to explain recent 10-year Treasury yields of 3.30%. The deflationist view is the one that prevails. This view, which makes some compelling and elegant arguments, maintains that the credit losses far surpass the monetary and ...read more

"Just how can the Fed credibly promise to be irresponsible...?" Here’s a thought—that tiny handful of investors and analysts warning how Fed policy risks hyper-inflation are in fact doing the central bank's work. The Fed wants you to believe hyperinflation is looming. Or at least, it should want that, if doubling its ...read more

"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

I bet you don’t own enough gold. Before you tell me I’m wrong, let me ask it this way... If inflation returns, or even hyperinflation... If the economic crisis persists and gets worse... If uncertainty and fear continue, and chaos and rioting begin... If stock markets languish or suffer another meltdown... If the recovery spending of ...read more

"We didn't abandon the money-supply aggregates. They abandoned us..." TIME WAS that central banks targeted and fretted about keeping their currency stable against the Dollar. But as the Dollar-led inflation of 1950-1980 destroyed the value of bonds and savings worldwide – and then destroyed equities, as well as any sober hope of ...read more

"We are entering upon waters for which I have no chart and in which I therefore feel myself an utterly incompetent pilot." – James Warburg of the banking dynasty, resigning as President Roosevelt's monetary advisor, 1933 Want to know where the price of gold, oil, the S&P, Euro or overseas stock markets ...read more

What if deflation wins? While we think the odds are strongly stacked against it, particularly given the government’s furious pace of money printing, the prudent investor understands – and respects – the time-tested adage, “Nothing is guaranteed.” So while our chips sit squarely on the spot marked “inflation,” what will happen ...read more

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

Simple question: how do you invest during an inflationary boom? Today, some concrete ideas. And the simplest idea of them all-when you consider soaring government deficits-is to sell government bonds and buy beaten down, world-class equity. Mind you, this is if you want to be in the equity market at all. ...read more

If governments wised up and ceased pumping trillions of new money and credit to back-stop assets with unsupportable values, you'd get a severe and painful deflation. The flow of money and credit would contract and the general price level would fall—most severely for those assets that benefited the most from ...read more