An excellent argument that Inflation is lifting Off just as we are going into Recession.. Can anyone
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Saying oil is up 30% in a few momths while ignoring the fact that it is also down 15% in the last 9 months is nothing short of fear mongering.
Now back to our regulary scheduled deflationary program.
Knowledge is the enemy of fear
<< <i>The author is using selective facts to prove a point. No good
Saying oil is up 30% in a few momths while ignoring the fact that it is also down 15% in the last 9 months is nothing short of fear mongering.
Now back to our regulary scheduled deflationary program.
30% minus 15% equals a net 15% over nine months. Sure looks like price inflation.
To better understand the FED's approach to deflation, one must understand how Ben thinks..
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I knew it would happen.
Great! then we can all expect our salaries, and the value of our houses, to skyrocket, along with prices for everything else?!?
Liberty: Parent of Science & Industry
<< <i>
<< <i>The author is using selective facts to prove a point. No good
Saying oil is up 30% in a few momths while ignoring the fact that it is also down 15% in the last 9 months is nothing short of fear mongering.
Now back to our regulary scheduled deflationary program.
30% minus 15% equals a net 15% over nine months. Sure looks like price inflation.
>>
$150 four years ago and $100 today. Sure looks like price deflation.
We could go on all night like this, but thanks for helping me prove a point.
Knowledge is the enemy of fear
Knowledge is the enemy of fear
<< <i>
<< <i>The author is using selective facts to prove a point. No good
Saying oil is up 30% in a few momths while ignoring the fact that it is also down 15% in the last 9 months is nothing short of fear mongering.
Now back to our regulary scheduled deflationary program.
30% minus 15% equals a net 15% over nine months. Sure looks like price inflation.
To better understand the FED's approach to deflation, one must understand how Ben thinks.. >>
I should have read this more closely as it illustrates the problems most people have with numbers. Oil was $110 in March, $77 in July and $93 today. 15% drop over the last 6 months is price inflation?
Its kind of like saying "my stock dropped 90% last year but is up 300% this year so im doing very well." Um, yeah, good luck.
Knowledge is the enemy of fear
<< <i> Wow, look at all that new money doing nothing. >>
It's earnng interest for the banks that have it on deposit. I suspect it is where the FED wants it to be - inflation remains controlled. Once it leaves reserves deposits, FED no longer has direct control over what is done with it.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>When the market regains control of interest rates, consumers will take this money in the form of loans, and the velocity of money will accelerate along with inflation
Great! then we can all expect our salaries, and the value of our houses, to skyrocket, along with prices for everything else?!? >>
Everybody loses in inflation except a few who are wealthy enough and fleet footed
enough to profit from it. Don't worry about the bankers since they'll do just fine even
though they caused the problem.
The bad thing is that inflation does structural damage to the economy and reduces
total wealth by forcing good companies out of business and rewarding bad companies.
The Hungarian economy was worth 26,000,000,000,000,000,000 Pengos in 1947 but
this was only about $40 US. In theory you could have bought Hungary for $40. My
guess is the bankers will, in fact, buy the US without it costing too much.
when oil was at 150.00 and it's 4.00+ when oil has been at 90+.
Different times...................
I agree stagflation is only a stones throw away.
A real inflation rate takes into consideration energy and food prices, something the govt. does not do.
Lastly the real 'misery index number' should be around 25, something not even the Carter era accomplished..
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
In God We Trust.... all others pay in Gold and Silver!
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Its quiet in here without numbers , what happened to him does anyone know?
<< <i>Excellent thoughts on money, asset bubbles and inflation from Charles Hugh-Smith >>
Indeed. He make an excellent case to explain the lack of inflation....
3. It depends on the capacity to produce goods and services. The global economy is burdened with over-capacity: the capacity to produce steel, autos, flat-screen TVs, etc., far exceeds demand. Even if the Fed ordered 10 million new TV sets to be given away, this would not generate much inflation because existing factories could churn out the extra 10 million without even reaching full capacity.
As for services--there is an over-supply of labor in virtually every sector, even ones that have traditionally been restricted: the demand for more lawyers is low, dentists' waiting rooms are often empty, and so on. In other words, a vast over-capacity also exists in most of the service sector.
4. It depends on values and priorities. Let's say the Fed created enough money to give each household $10,000 in cash--the famed "helicopter drop" of money. If most households saved the windfall or used it to pay down existing debt, very little of it would flow into the economy as demand for goods and services. The inflationary effect of all this new money would be essentially nil.
Knowledge is the enemy of fear
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Wow, look at all that new money doing nothing. >>
Except, the banks are using it to construct nice new buildings. There's 4 new bank buildings under construction in our small town. Boy, sure seems like 2006 again. Groundhog Day.
Get out of the system
<< <i>If M2 starts to trend higher...... hold on inflation is coming! >>
Starts to? M2 has been trending upwards at 8-10% per year since 1995. The money printing and reserves allow the big boyz to place money wherever they can
arbitrage a sure profit. If that means running up (or down) commodities, stocks, bonds, etc.....they'll do it.
The huge bank reserves also give the big banks the necessary capital ratios for them to run their unregulated trading programs in the same manner that they always have.
Those reserves ensure they can continue to place/maintain big derivative's bets as needed.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>I thought you'd like this one. >>
This farmer wont be driving a euro exotic, however I do have a 2014 Shelby GT500 coming into the dealer on April 19th.
<< <i>
<< <i>I thought you'd like this one. >>
This farmer wont be driving a euro exotic, however I do have a 2014 Shelby GT500 coming into the dealer on April 19th.
Knowledge is the enemy of fear
I knew it would happen.
<< <i>Money supply metrics: Look at the true money supply >>
Neat article, read every word, all the different definitions of "money" that make up different interpretations of "the money supply"
NO mention of gold or silver, nor of stocks, land, oil, sugar, wheat, corn, nor frozen concentrated orange juice
Liberty: Parent of Science & Industry
to be money it MUST serve as the FINAL means of payment in all transactions. In other words, it must be the thing which FULLY extinguishes the debt incurred in a transaction
This is something that I have to keep reminding myself about. The debt keeps climbing because most of the new money is simply being used to continue bailing out the TBTF banks without helping the economy. The national debt and derivative debt have no chance of being estinguished unless the government/Fed hyperinflates, which they will do because at some point, "somebody" will want their money back from their end of the deal from which the debt was created.
The other troubling thing is that they keep inventing new ways to re-define what's what. Bank deposits are now becoming bank equity, even though the depositors had no inclination to be bank investors. Likewise, the "Treasury’s Supplementary Financing Account (SFP)" bothers me even more so. It just seems to be another layer of the onion that should never have been necessary in the first place.
NO mention of gold or silver, nor of stocks, land, oil, sugar, wheat, corn, nor frozen concentrated orange juice
Baley, the thing about gold or silver is that there is no counterparty. As pure assets, there is no need to extinguish a debt. Coming full circle with the essay, I might point out that gold or silver can be used to extinguish a future debt and as such, they are >>>better than<<< money.
I knew it would happen.