Keyword: inflation

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  • When, Not If, Inflation Returns

    09/10/2012 10:25:30 PM PDT · by blam · 21 replies
    The Daily Reckoning ^ | 9-10-2012 | Jeff Clark
    When, Not If, Inflation Returns By Jeff ClarkSeptember 10, 2012 The cheek of it! They raised the price of my favorite ice cream. Actually, they didn’t increase the price; they reduced the container size. I can now only get three servings for the same amount of money that used to give me four, so I’m buying ice cream more often. Raising prices is one thing. I understand raw-ingredient price rises will be passed on. But underhandedly reducing the amount they give you…that’s another thing entirely. It just doesn’t feel…honest. You’ve noticed, I’m sure, how much gasoline is going up. Food...
  • Why QE3 Is Coming Next Week

    09/09/2012 6:10:53 AM PDT · by blam · 23 replies
    TBI=Calculated Risk ^ | 9-9-2012 | Calculated Risk-Bill McBride
    Why QE3 Is Coming Next Week Calculated RiskSep. 8, 2012, 10:29 PMSince the Jackson Hole Symposium, I've been thinking it is very likely that so-called "QE3" would be announced at the next FOMC meeting (Sept 12th and 13th). And after thinking about Columbia University professor Michael Woodford's paper presented at Jackson Hole, I think this round of asset purchases might be more effective than most people expect. Notes: QE3 is shorthand for another Large Scale Asset Purchases (LSAP) program. "QE" is monetary policy, not fiscal policy (not spending). Yesterday, Goldman Sach economist Sven Jari Stehn beat me to the punch....
  • If Bernanke Bails Out Obama Get Ready For Five Buck Gas - Post Election

    09/06/2012 5:51:33 PM PDT · by billflax · 14 replies
    Forbes ^ | 09/06/2012 | Bill Flax
    Once there was an unwritten rule that the Federal Reserve would refrain from significant policy adjustments before an election. Few things are as encompassing to culture as our currency, or as vital that they be thought free of intrigues. With public confidence in the dollar diminished, or perturbed by politics, society suffers this dearth of trust in more than just finance. Commentary abounds that Mr. Bernanke will soon commence yet more quantitative easing, QE3 for short. Why? Clearly the ongoing economic stagnation stems not from prohibitively high interest rates. Rates hover just off historic lows. Given the moribund economy, financial...
  • The Printing Press Is Running Hot, But Where Is Inflation And How Will It Affect Gold?

    09/06/2012 11:13:39 AM PDT · by blam · 38 replies
    TMO ^ | 9-6-2012 | GoldSilverWorlds
    The Printing Press Is Running Hot, But Where Is Inflation And How Will It Affect Gold? Commodities / Gold and Silver 2012Sep 06, 2012 - 02:48 AM By: GoldSilverWorlds The key to understanding inflation lies in the implications of an increasing money supply. Here at Global Gold, we rely on the “True Money Supply” which is provided by the Mises Institute. The “True Money Supply” was originated by Murray Rothbard and represents the amount of money in the US economy that is available for immediate use in exchange. On the chart below you see that the True Money Supply has...
  • 'Are you better off' question dogs Democrats

    09/04/2012 12:50:25 AM PDT · by Cincinatus' Wife · 16 replies
    San Antonio-Express News ^ | September 4, 2012 | Richard S. Dunham with Summer Ballentine
    CHARLOTTE, N.C. — A simple question has flummoxed the normally disciplined Democratic message machine. “Are you better off now than you were four years ago?” The question — first asked by Franklin D. Roosevelt in 1936 during the depths of the Great Depression and used to devastating effect by Ronald Reagan against President Jimmy Carter in 1980 — has become a defining element of the 2012 campaign dialogue. “The president can say a lot of things, and he will, but he can't tell you that you're better off,” GOP vice presidential candidate Paul Ryan said Monday at a pre-convention campaign...
  • $4 for gas should fuel Mitt Romney’s talk

    08/30/2012 1:11:22 AM PDT · by 2ndDivisionVet · 3 replies
    The Boston Herald ^ | August 30, 2012 | Howie Carr
    TAMPA, Fla. — Here are some real estate signs I’ve seen in Hillsborough County in this fourth year of our economic “recovery.” •     “No Reasonable Offer Refused.” •     “Starting in the low 100’s.” •     (This next one was hand-lettered, at an exit off the interstate) “Lots Dirt Cheap! 9K.” You think the economy’s in tough shape in Boston, but it’s much worse down here, and in most of the rest of the country. And I hope Mitt talks a lot about it tonight in his prime-time speech. It’s still the economy, stupid. Plus, likability is overrated. No matter what Mitt says or does...
  • The Day Of Economic Reckoning Is Near

    08/26/2012 7:45:37 AM PDT · by blam · 11 replies
    TMO ^ | 8-26-2012 | Doug Casy- TGR
    The Day Of Economic Reckoning Is Near Economics / Great Depression II Aug 25, 2012 - 01:23 PM By: The Gold Report It is a deal with the devil: Governments churn out more and more cash for the promise of continued prosperity. But the day of reckoning is near, according to Doug Casey, chairman of Casey Research and an expert on crisis investing. As the epic battle between inflation and deflation continues on, Casey discusses his predictions for the new world market in this exclusive interview with The Gold Report. The Gold Report: There will be a Casey Research Summit...
  • Hyperinflation – Still More Than A Monetary Phenomenon

    08/18/2012 1:45:55 PM PDT · by blam · 13 replies
    Pragmatic Capitalism ^ | 8-17-2012 | Cullen Roche
    Hyperinflation – Still More Than A Monetary Phenomenon 08/17/2012 1:15 PM Cullen Roche One of the bigger myths in the world of economics and finance remains the cause of hyperinflation. As I’ve highlighted many times over the years, hyperinflation is more than just a monetary phenomenon (and misunderstanding this led to many incorrect hyperinflation predictions in the USA in recent years). In fact, the monetary explosion is almost always the result of some other rare or extreme exogenous factor. My original conclusions on this found that hyperinflations tended to occur around the follow events: * Collapse in production. * Rampant...
  • Where is the outrage over "outrageous" food prices?

    08/10/2012 5:00:07 AM PDT · by REPANDPROUDOFIT · 44 replies
    TownHall ^ | Aug. 10, 2012 | Carol Platt Liebau
    ....the Obama campaign is trying hard to "reach out" to women -- ....with false claims about the GOP's plans to take away contraception.... But for women who are really paying attention, this should raise some eyebrows: As the graphic below illustrates, grocery prices have risen 15% just since the start of President Obama's term.
  • PETER SCHIFF: We Are Sailing Right Into The Perfect Storm

    08/09/2012 7:15:56 AM PDT · by blam · 25 replies
    TBI ^ | 8-9-2012 | Sam Ro
    PETER SCHIFF: We Are Sailing Right Into The Perfect Storm Sam Ro Aug. 9, 2012, 9:26 AM Peter Schiff of Europacific Capital continues to sound the alarm on the risks of the government's mounting debt load and the Federal Reserve's low interest rate policy. Like Roubini and some other doomsayer, he employs the "perfect storm imagery." From a piece in King World News: The perfect storm is the real fiscal cliff that we’re going to go over. The real fiscal cliff is when we can’t borrow any more money because our creditors wake up to the fact that we’re no...
  • Papa John's Pizza To Raise Prices Because Of Obamacare

    08/07/2012 10:49:00 PM PDT · by KerryOnNoMore · 15 replies
    CBS ^ | 08/07/2012 | Harry Bradford
    After President Obama's health care law takes full effect, the slogan for national pizza chain Papa John's may need an update. Instead of, “Better ingredients. Better Pizza,” may we suggest, “Better health care. Pricier pizza." Papa John's CEO John Schnatter says that Obamacare will result in a $0.11 to $0.14 price increase per pizza, or $0.15 to $0.20 cents per order, Pizza Marketplace, a trade publication, reports. (Hat tip: @dkberman via Twitter.) Under Obamacare, the company, which is the third-largest pizza takeout and delivery chain in the United States, will have to offer health care coverage to more of its...
  • Why More Money Printing Will Increase Unemployment

    08/07/2012 3:36:48 PM PDT · by blam · 7 replies
    TMO ^ | 8-7-2012 | Michael Pento
    Why More Money Printing Will Increase Unemployment Economics / Unemployment Aug 07, 2012 - 01:06 PM By: Michael Pento Money Printing Doesn’t Create Jobs The developed world’s central banks are now foolishly preparing for a full assault on their respective currencies in an attempt to lower unemployment rates. Spurring these central bankers into action is persistently anemic markets and employment data, which they believe can be rectified by creating inflation. U.S. jobs data showed that the Non-farm payroll report for July produced 163k jobs. That sounds ok at first glance. However, the Household Survey conflicted with the Establishment Survey, in...
  • Weimar Greece

    08/07/2012 11:11:57 AM PDT · by arthurus · 4 replies
    International Man ^ | August 6, 2012 | Jeff Thomas
    ...Today, the shoe, as they say, is on the other foot. The debt owed by Greece is in the neighbourhood of US $345 billion (reports vary). The likelihood of eventual repayment is very slim indeed. And, not surprisingly, the Greek people feel the same way the German people did following the signing of the Treaty of Versailles. Correspondingly, events in Greece bear similarities to those seen in Germany in the 1920's. So, will we be looking at a repeat of Weimar Germany for Greece in the coming years? The first developments will most assuredly occur in connection with the new...
  • Guest Post: Has The Perfect Moment To Kill The Dollar Arrived?

    08/07/2012 7:31:48 AM PDT · by bt_dooftlook · 10 replies ^ | 08/07/2012 | Brandon Smith
    The idea of “collapse”, social and financial, comes with an incredible array of hypothetical consequences ranging from public dissent and martial law, to the complete disintegration of infrastructure and the devolution of mankind into a swarm of mindless arm chewing cannibals. In an age of television nirvana and cinema overload, I have found that the collective unconscious of our culture has now defined what collapse is based only on the most narrow of extremes. If they aren’t being hunted down by machete wielding looters or swastika wearing jackboots, then the average American dupe figures that the country is not in...
  • Obama Economic Plan Would Explode Debt to $25.4 Trillion

    08/04/2012 3:51:09 PM PDT · by Zakeet · 32 replies
    Big Government ^ | August 4, 2012 | Wynton Hall
    In presidential campaign ads, President Barack Obama claims that his economic plan includes “$4 trillion in deficit reduction.” For a president who has increased the national debt more than all U.S. presidents from George Washington to George H.W. Bush combined, the claim seems incredible. Indeed, it is. A new analysis of Mr. Obama’s budget reveals the president’s plan would add $10.6 trillion in debt accumulation over the next decade, bringing the U.S. federal debt to a jaw-dropping $25.4 trillion. Still, the president and his surrogates continue to claim the Obama plan would cut spending. “The President’s proposals… include a balanced...
  • Obama "Inflates" the Crowds at His Campaign Events!

    07/22/2012 11:29:39 AM PDT · by NOBO2012 · 11 replies
    Michelle Obama's Mirror ^ | 7-22-2012 | MOTUS
    I knew the lack of business experience in Big Guy’s administration would eventually get us in trouble. So here it is: we’re running a deficit. No – not THE deficit: No, we’re talking about Big Guy’s personal campaign deficit. ...So although our 2012 WTF: FORWARD kickoff we got off to a rocky start at Ohio State by spending $93 thousand dollars to rent a stadium that held twice as many people as showed up, the Big Brains have a plan. The Old-School way of “If you rent it, they will come” doesn’t work, so they’ve developed a New-School way. It’s...
  • Taxing Inflation, Part 3 | Romney vs. Nothing

    07/21/2012 5:02:40 PM PDT · by NaturalBornConservative · 1 replies
    Natural Born Conservative ^ | July 21, 2012 | Larry Walker, Jr.
    “We are in the midst of yet another great American discussion about taxation. Perhaps no policy area has become more sensitive or controversial. At stake are two vital concerns for the American future: How will we generate sufficient revenue to balance our budget without discouraging economic activity, and will the burden of taxation fall equitably on all Americans?” ~ Mitt RomneyFaith vs. Hopelessness | Independence vs. Dependence- By Larry Walker, Jr. -Under Mitt Romney’s tax proposal, no one making less than $200,000 a year is taxed on interest income, dividends or capital gains. For more on why this is just,...
  • Taxing Inflation, Part 2 | Simple Pro-Growth Policies

    07/15/2012 9:54:41 PM PDT · by NaturalBornConservative · 2 replies
    Natural Born Conservative ^ | July 15, 2012 | Larry Walker Jr
    Are we interested in treating the symptoms of poverty and economic stagnation through income redistribution and class warfare, or do we want to go at the root causes of poverty and economic stagnation by promoting pro-growth policies that promote prosperity? ~ Paul Ryan… Promoting Prosperity– By: Larry Walker, Jr. –In the United States, real gross private domestic investment currently represents 14.1% of real GDP, or $1.9 trillion. But it only represented 12.6% in 1993, after the Clinton tax hikes. Then in 1997, the Republican-led Congress passed a tax-relief and deficit-reduction bill that was at first resisted but ultimately signed...
  • Taxing Inflation: Why Americans Invest Overseas

    07/13/2012 2:45:25 PM PDT · by NaturalBornConservative · 3 replies
    Natural Born Conservative ^ | July 13, 2012 | Larry Walker, Jr.
    Artificially Raising Taxes Reduces GDP- By: Larry Walker, Jr. -"Tax increases appear to have a very large, sustained and highly significant negative impact on the economy.” ~ Christina Romer, just prior to leaving the Obama Administration -U.C. Berkley Professor and President Obama’s former Chair of his Council of Economic Advisers (CEA), Christina Romer, published a paper in 2010, concluding that a tax increase of 1 percent of GDP, about $160 billion today, reduces output over the next three years by nearly 3 percent, or $480 billion at current GDP figures. And according to the Bureau of Economic Analysis, per...
  • BofA: QE3 Is Coming In September

    07/11/2012 9:37:58 PM PDT · by blam · 6 replies
    TBI ^ | 7-11-2012 | Sam Ro
    BofA: QE3 Is Coming In September Sam Ro July 11, 2012, 7:25 PM Economists spent the afternoon thumbing through the minutes of the June Federal Open Market Committee (FOMC) meeting. They were searching for clues on what the Fed's next move might be. Bank of America's economics team led by Michael Hanson and Ethan Harris think that the next move is QE3, a form of monetary policy that involves buying certain securities to lower interest rates. From this afternoon's note to clients: The minutes from the June FOMC meeting revealed a larger number of Fed officials either favoring or willing...
  • Corn Futures SURGE As USDA Cuts Crop Forecast By 12%

    07/11/2012 6:49:51 AM PDT · by blam · 7 replies
    TBI ^ | 7-11-2012 | Mamta Badkar
    Corn Futures SURGE As USDA Cuts Crop Forecast By 12% Mamta Badkar Jul. 11, 2012, 8:38 AM Corn prices are jumping after the USDA cut corn yield by 20 bushels per acre to 146 bushels per acre. This is down from 166 bushels per acre because of poor crop conditions from early June and because of the heatwave and drought conditions plaguing the Midwest. The corn crop forecast was cut 12 percent to 12.97 billion bushels. Corn futures are up 3.20 percent on the news. From the report: "Persistent and extreme June dryness across the central and eastern Corn Belt...
  • Global Inflation Wave. Economists about economic crisis and Emperor Constantine's solution.

    05/21/2012 7:17:20 AM PDT · by se99tp
    Christian Concepts Daily ^ | May 21st, 2012 | Dr Norman Bailey
    Confronted by multiple challenges in the wake of the global financial and economic crisis and having exhausted more traditional central bank levers which left interest rates at near zero, governments adopted a series of policies almost as a matter of course. Whether termed ‘credit easing’, ‘quantitative easing’ or ‘twisting’, these policies all have one thing in common – they increase the money supply... Further complicating the book keeping, some central banks, most significantly the U.S. Federal Reserve, are maintaining the policy of directly monetizing the federal debt. To be clear, debt monetization is not a result of the 2008-2009 crisis;...
  • MAULDIN: Germany Has Waved The White Flag And Will Allow Printing And Inflation

    05/13/2012 7:12:50 AM PDT · by blam · 12 replies
    TBI ^ | 5-12-2012 | John Mauldin
    MAULDIN: Germany Has Waved The White Flag And Will Allow Printing And Inflation John Mauldin, Thoughts From The Frontline May 12, 2012, 5:39 PM A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools. - Douglas Adams, The Hitchhiker's Guide to the Galaxy(Adams must have been a poor designer, a good designer designs for complete fools.) For quite some time in this letter I have been making the case that for the eurozone to survive, the European Central Bank would have to print more money than any of us...
  • Politically Incorrect Money Guide

    05/09/2012 10:28:11 AM PDT · by Academiadotorg
    Accuracy in Academia ^ | May 8, 2012 | Malcolm A. Kline
    Judy Shelton, an economist not on a university payroll, has sought to satiate this widespread curiosity in her book, Fixing The Dollar Now: Why U. S. Money Lost Its Integrity And How We Can Restore It... ... our first Secretary of the Treasury, Alexander Hamilton—widely thought to be, with some justification, an advocate of a strong, central government. “To emit an unfunded paper as the sign of value ought not to continue a formal part of the constitution, nor ever hereafter to be employed; being, in its nature, pregnant with abuses, and liable to be made the engine of imposition...
  • Did Americans of the Past, Understand Money Better, than the Americans of Today?

    05/04/2012 11:20:26 AM PDT · by pinochet · 19 replies
    When young Americans read the history of the New Deal Era in the 1930s, they ask themselves how the FDR administration could have imposed a 90 percent top tax rate on rich Americans. From the New Deal Era to the 1970s, Americans believed in tax and spend policies. From the 1980s, Americans adopted borrow and spend policies. Tax and spend policies are more moral and more justified, than borrow and spend policies. In the old days, Americans believed that all spending had to be paid for, and that one could not spend money that he did not have. Americans viewed...
  • A Rebellion at the Federal Reserve? (Must of read Krugman)

    05/03/2012 6:47:58 AM PDT · by C19fan · 30 replies
    The Atlantic ^ | May 2, 2012 | Matthew O'Brien
    Chicago Federal Reserve president Charles Evans doesn't look the part of a heretic. But in the cozy, conservative club that is central banking, he certainly qualifies. While most of his colleagues at the Fed have recently taken an even more hawkish turn, Evans remains a champion of additional monetary stimulus. And on Tuesday he took an even bigger step: He became the first sitting Fed member to endorse nominal GDP (NGDP) level targeting. Sounds wonky? It is. But here's why Evans' suggestion is also extremely bold. The Fed famously has a dual mandate: It's supposed to promote the maximum level...
  • Brazil Did A Massive Rate Cut, And Suddenly The Whole World's Been Turned Upside Down

    04/18/2012 8:39:18 PM PDT · by blam · 7 replies
    TBI ^ | 4-18-2012 | Joe Weisenthal
    Brazil Did A Massive Rate Cut, And Suddenly The Whole World's Been Turned Upside Down Joe Weisenthal April 18, 2012 The big monetary policy news of the evening: Brazil's central bank has cut interest rates from 9.75% to 9.00%. That was somewhat expected, but the real news according to Reuters is the dovish tone taken by the bank, implying more rate cuts to come. Let's take a moment to pause and reflect on the state of global monetary policy. The other big rate cutter is India, which did a 50 basis point cut earlier this week. China is generally in...
  • Who is Paul Krugman kidding? Inflation is morally abhorrent

    04/17/2012 7:43:36 PM PDT · by billflax · 11 replies
    Forbes ^ | 04/17/2012 | Bill Flax
    Paul Krugman again. Still beholden to chimerical Phillips Curve absurdities, the professor proposes inflation to stimulate stagnant labor markets. The Phillips Curve insists that rising inflation lowers unemployment. The theory presumes businesses increase prices faster than workers’ wages raise effectively making labor inexpensive. When real salaries shrink, hiring accelerates. As Krugman details, the Fed’s focus is dual: stable prices and full employment. So he seeks to overcome persistent unemployment through purposeful failure on the price front, lamenting that “Fed officials ... are feeling intimidated ... and that American workers are paying the price for their timidity.” Krugman thus urges Ben...
  • Monetary Sedition

    04/17/2012 6:31:37 AM PDT · by arthurus
    Seeking Alpha ^ | April 15, 2012 | The Inflation Trader
    Is it really necessary to have a canary in the coal mine when the mine is belching clouds of noxious smoke? Today’s Empire Manufacturing Report surprised on the weak side by printing only 6.56 for April, the weakest number of the year so far although still well ahead of the lows from last year (see Chart, source Bloomberg).
  • Capital Ideas

    04/14/2012 5:40:56 AM PDT · by fporretto · 1 replies
    Liberty's Torch ^ | April 14, 2012 | Francis W. Porretto
    In the ongoing presidential campaign, we may expect a handful of broad themes to receive the overwhelmingly greater fraction of the Democrat propagandists' efforts: "Republican war on women" "The 1%" "Fairness" The "fairness" canard is, of course, aimed at cowing the GOP's Congressional caucus, its candidates, and the electorate into bowing to higher taxation. In this connection, the Democrats' dominant meme has been that "millionaires and billionaires" are somehow evading paying their "fair share" of federal taxes, and that this contributes to the immense Obamunist deficit. Let's see if I can make this as striking as it always was at...
  • Most Albertson's In Central Fla. To Close

    04/13/2012 10:42:17 AM PDT · by sheikdetailfeather · 28 replies
    ORLANDO, Fla. -- A Central Florida supermarket chain is about to close almost all of its local stores. It's part of a move by Albertson's to end the majority of its operations in the state. For the last year or so, Albertson's has been shrinking the number of stores it operates in Florida. In Central Florida, six more stores are going to close in the next few weeks. Only a store in Altamonte Springs will remain open. Albertson's says the Florida market is not good for it, and with fuel and utility costs being what they are, it's closing all...
  • We Need Gold Standard to Stabilize Dollar

    04/11/2012 3:04:03 PM PDT · by SaveOurRepublicFromTyranny · 17 replies ^ | April 9, 2012
    The dollar has lost 85 percent of its purchasing power since the government scrapped the gold standard in the early 1970s, and it's up to Congress to obey the Constitution and bring the system back, says historian and investor Lewis E. Lehrman, author of the book "The True Gold Standard."
  • Looking on the bright side of inflation (al Reuters spins for Ubama)

    04/08/2012 4:59:03 PM PDT · by E. Pluribus Unum · 30 replies
    Yahoo! News ^ | April 8, 2012 | Stella Dawson
    WASHINGTON (Reuters) - Sometimes a little bit of inflation is not such a bad thing. In the United States, prices starting to creep upward shows the deep wounds from the credit crisis are slowly healing and the U.S. economy is well on the road to recovery.
  • Treasury Says Deficits Mustn’t Be Allowed to Slow Spending

    04/08/2012 11:26:25 AM PDT · by John Semmens · 15 replies
    Semi-News/Semi-Satire ^ | 7 April 2012 | John Semmens
    Treasury Secretary Timothy Geithner argued against letting fears of ballooning federal government deficits interfere with increased government spending. “The federal government’s debt and deficit are no big deal,” Geithner insisted. “It’s not like personal or corporate debt or fiscal shortfalls. It can be canceled at any time. Look, the government makes the laws. It can easily make a law absolving itself from the responsibility to repay borrowed money if it has to.” Geithner hastened to clarify that he was “not advocating such a law at this time, but the power is there if we need it. I don’t think we...
  • Krugman: Not enough inflation.

    04/06/2012 5:23:01 AM PDT · by GlockThe Vote · 39 replies
    NY Slimes ^ | 4/6/2012 | Paul Krugman
    No, the real reason the attacks on Mr. Bernanke from the right are so destructive is that they’re an effort to bully the Fed into doing exactly the wrong thing. The attackers want the Fed to slam on the brakes when it should be stepping on the gas; they want the Fed to choke off recovery when it should be doing much more to accelerate recovery. Fundamentally, the right wants the Fed to obsess over inflation, when the truth is that we’d be better off if the Fed paid less attention to inflation and more attention to unemployment. Indeed, a...
  • Do you keep your receipts?

    04/05/2012 11:02:49 AM PDT · by MNDude · 79 replies
    Does anyone here keep their grocery receipts from a long time? I'm curious to know if anyone has seen obvious cases of inflation at the grocery store.
  • Government Says 4.1%, But General Mills Reports 10-11% Inflation

    04/05/2012 10:30:38 AM PDT · by Java4Jay · 8 replies
    Once we realize that government statistics are badly flawed, or altogether bogus, we can use our empirical knowledge to understand the real situation. People who go to the store and buy things know that the deflation has never affected anything other than financial assets and real estate. The price of stocks (after inflation) and home values are dropping, while the price of everything else is soaring.
  • WSJ: Fed Buying 61 Percent of US Debt (Japan, China that once scooped up U.S. debt are shunning it)

    04/02/2012 6:01:00 PM PDT · by SeekAndFind · 32 replies
    Money News ^ | 04/02/2012 | Julie Crawshaw and Forrest Jones
    The Federal Reserve is propping up the entire U.S. economy by buying 61 percent of the government debt issued by the Treasury Department, a trend that cannot last, Lawrence Goodman, a former Treasury official and current president of the Center for Financial Stability, writes in a Wall Street Journal opinion article published Wednesday. "Last year the Fed purchased a stunning 61 percent of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis," Goodman writes. Goodman also warns that U.S. economy and markets are “at risk for a sharp correction” if conditions aren’t “normalized.” "This...
  • RUSSELL: A Massive Stock Market Collapse Will Wipe Out 60 Years Of Inflation And Leveraging

    03/30/2012 10:10:51 PM PDT · by blam · 25 replies
    TBI ^ | 3-30-2012 | Sam Ro
    RICHARD RUSSELL: A Massive Stock Market Collapse Will Wipe Out 60 Years Of Inflation And Leveraging Sam Ro Mar. 30, 2012, 8:23 PM Richard Russell, writer of the Dow Theory Letters, is just looking for the right time to buy stocks. But that time isn't now. And until that time comes, Russell will be keeping his wealth in gold. He writes in King World News: What I want to illustrate is that great fortunes are made at super-bear market lows. But you must have the money at the lows. Which is why gold is so singular and valuable. If you...
  • Marc Faber: Continuing Financial Crisis Must Be Endured

    03/31/2012 7:51:21 AM PDT · by TigerLikesRooster · 15 replies
    Seeking Alpha ^ | 03/26/12 | Ed Bace
    Marc Faber: Continuing Financial Crisis Must Be Endured March 26, 2012 | 21 commentsby: CFA Institute | includes: DIA, IVV, QQQ, SPY, VTI By Ed Bace, CFA Marc Faber, editor of “The Gloom, Boom and Doom Report,” kicked off the CFA Institute Middle East Investment Conference by quoting Ernest Hemingway who said, “The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring permanent ruin.” On this downcast note, Faber attacked short-term Keynesian spending and reviewed the implications for investors of the accelerating shift of world economic and...
  • FHA's Capital, Personal Income, Spending and Savings: All Aboard the Debt Train!

    03/30/2012 7:36:53 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 03/30/2012 | Anthony B. Sanders
    The Bureau of Economic Analysis (BEA) released the Personal Income and Outlays report for February. The Good: Personal income increased $28.2 billion, or 0.2 percent in February and Personal consumption expenditures (PCE) increased $86.0 billion, or 0.8 percent (mostly consumer durables like autos and computers). Real Personal Consumption Expenditures (PCE) increased 0.5 percent in February, compared with an increase of 0.2 percent in January. Personal income rose 0.2% in February. The Bad: REAL personal income fell 0.1% in February. So, personal spending increased 0.5% while personal income FELL 0.1%. That means that households … are boarding the Debt Train again!...
  • US Sells 10-Year TIPS At Record Negative Yield

    03/24/2012 10:03:05 PM PDT · by RC one · 16 replies
    NASDAQ ^ | 3/23/12 | CYNTHIA LIN
    NEW YORK -(Dow Jones)- The U.S. government sold debt at a record low yield Thursday, as buyers accepted a negative payment for the second time in history on 10-year notes that shield them from the threat of inflation. The $13 billion offering of 10-year Treasury Inflation Protected Securities, or TIPS, garnered decent interest. It drew a bid-to-cover ratio of 2.81, compared to a 2.74 average over the last six sales of the same kind. Buyers accepted a negative 0.089% yield, reflecting their willingness to pay a premium to own U.S. government debt, perhaps on the belief that they will be...
  • Atlantic Magazine Proclaims Ben Bernanke "THE HERO"

    03/23/2012 5:08:24 AM PDT · by Kaslin · 8 replies · 2+ views ^ | March 23, 2012 | Mike Shedlock
    If you are looking for the most nauseating cover possible on Ben Bernanke, please consider the April 2012 issue of the Atlantic. The cover asks the question "Ben Bernanke saved the global economy. So why does everyone hate him?" For starters Ben Bernanke did not save the global economy. Making such a proclamation is like a football fans proclaiming victory at the end of the third quarter with the score 54-24 following a 24 point rally after being down 54-0. Simply put, it is far too early to make a presumption the Fed "saved" anything given the global economy remains...
  • Amputate or Die

    03/18/2012 9:31:15 AM PDT · by Albion Wilde · 134 replies ^ | 17 June 2010 | Dr. Jack Wheeler
    It was a sobering dinner party last night... Hosted by a London billionaire in his exquisite home...but the conversation between the ten of us was stone-cold serious... "You know what my biggest fear is?" our host asked. "It's not really Obama, for what he's done is to accelerate what the liberals have been slowly doing for decades -- so quickly that their socialism is obvious to everyone. Which means the solution is obvious to everyone. My biggest fear is that voters will give Republicans the power to repair America on November 2nd -- and the Republicans won't have the courage...
  • Cavuto: A storm called inflation is here

    03/17/2012 3:57:04 AM PDT · by carriage_hill · 122 replies · 1+ views
    Fox News ^ | March 16, 2012 | Neil Cavuto
    Who am I to rain on a Pre-Saint Patty's Day parade...? But there's a storm coming, my friends. And the government has us marching merrily into what will be a dozy of a downpour. I'm talking about's here. And trust me, it's already marching. The government won't tell you that. Keeps putting out numbers that pretty much dismiss that. The latest consumer prices didn't seem to show it, or even hint it. But trust me; we're in the grips of it. And I’m not talking gas. Or milk. Or cheese. Or meat. Or cereal. Or any one of the...
  • Higher gas prices push inflation rate increase to 10-month high

    03/16/2012 3:21:48 PM PDT · by tobyhill · 11 replies · 1+ views
    LA Times ^ | 3/16/2012 | Don Lee
    In another sign that higher gas prices are squeezing consumers, the government's monthly measure of inflation rose in February at the strongest pace since last April. The consumer price index jumped 0.4% last month from January, mostly because of energy prices, which increased 3.2% over the month, the Bureau of Labor Statistics reported Friday. Compared to a year ago, the February inflation index was up 2.9%, the same annual rate as in January.
  • Consumer prices rise sharply in February

    03/16/2012 6:14:24 AM PDT · by MulberryDraw · 30 replies · 2+ views
    Market Watch ^ | March 16, 2012 | Jeffry Bartash
    Cost of gas jumps 6% to mark biggest increase in over two years The consumer price index jumped 0.4% last month on a seasonally adjusted basis, the Labor Department said Friday. That was slightly below the 0.5% increase forecast by a MarketWatch survey of economists. The higher cost of consumption last month easily outstripped a 0.1% gain in hourly pay for U.S. workers. As a result, inflation-adjusted earnings fell 0.3% in February to mark the second straight decline. [snip] Over the past 12 months, consumer prices have risen an unadjusted 2.9%, unchanged from January.
  • Governor Palin’s Inflation Warning in 2010 Looks Increasingly Prophetic

    03/14/2012 7:43:46 PM PDT · by Nachum · 21 replies
    conservatives 4 palin ^ | 3/14/12 | Doug Brady
    Back in November 2010 Governor Palin delivered a speech in which she warned that Bernanke’s “easy money” policy at the Fed were resulting in rising prices and, if left unchecked, had the potential to cause Jimmy Carter style inflation, complete with Carteresque terms like ”stagflation” and the “misery index” that refugees from the 1970s remember all too well. Shortly after Governor Palin’s speech an intellectually lazy Wall Street Journal reporter, Sudeep Reddy, dismissed Governor Palin’s concerns and assured us that inflation was no problem, nor was it likely to be in the foreseeable future, he averred. This prompted a classic...
  • Senate rejects plan to open Arctic refuge to drilling

    03/13/2012 3:09:05 PM PDT · by Free ThinkerNY · 37 replies · 1+ views
    Associated Press ^ | March 13, 2012 | Sean Cockerham
    WASHINGTON _ The Senate on Tuesday resoundingly rejected a sweeping measure to open the Arctic National Wildlife Refuge and other protected areas to oil drilling, as well as to approve construction of the Keystone pipeline project. Tuesday's vote was the first time in four years that the Senate has voted on a measure including ANWR drilling, and it failed miserably.
  • Fed Funds Announcement: Gold, Housing, Stocks, Inflation, Unemployment and the Taylor Rule

    03/13/2012 11:44:46 AM PDT · by whitedog57
    Confounded Interest ^ | 03/11/2012 | Anthony B. Sanders
    The Federal Reserve Board’s Open Market Committee will announce this afternoon whether it is keeping the Fed Funds target at current levels or doing something else. Update: as expected, no changes. Housing One asset class that has weighed heavily on The Fed’s mind is the housing market. The Fed Funds Target rate fell off the cliff in January 2008 and fallen steadily to virtually zero. But notice that home prices (as measured by FNC’s 20 Metro house price index) has continued its downward path despite historically low Fed Funds Target rate and mortgage rates. Stock Market On the other hand,...