Deflation

One of the rules I live by is to be wary of people with ideologies that are firmly set in stone.  With regard to the financial markets, I am very wary of them.  That is because successful navigation of the markets – while avoiding or mitigating periodic blow ups – depends on the ability to … Continue reading

This time it’s on inflation investing…..

Delusional deflationist right from the Bank of England MPC, to the mainstream press for well over a year have pushed the mantra of ongoing debt deleveraging deflation….

Both the gold stocks and Silver had big 3% gains today. As you can see from the chart below, both markets are nearing a test of 2008 resistance.   A move past the 2008 highs would be an important breakout. However, it is important to note that in both Silver and various large-cap gold stock … Continue reading

In its September Monetary Trends letter titled “The Monetary Base and Bank Lending: You Can Lead a Horse to Water…” the St Louis Fed analyzes the phenomenon that has all monetarists up in arms, namely the surge in the monetary base and the very muted increase (and outright alleged drop in the case of the … Continue reading

Months ago we wrote about the true causes of hyperinflation. We proceed to expand upon our views as we disagree with the views put forth by John Mauldin, Mike Shedlock and now Jim Rickards who all focus on velocity and/or bank lending as important causes of hyperinflation. The reality is that hyperinflation is first and … Continue reading

M2 “is there” and now the Fed needs velocity to go with it, says Zero Hedge.  I will go one step further and say that they are not likely to get said velocity until the d Boys have convinced everybody that it isn’t coming. Even then, it may not come domestically here in the good … Continue reading

After the junk from Brett Arends and James Altucher, the WSJ finally has some worthwhile analysis on Gold. However, there are still many holes in this piece. The author basically concludes that Gold is a currency and not a commodity because it has followed US Dollar movements closely. Yes, we all know that Gold and … Continue reading

To me, the title is stating the obvious. To many, such talk is ridiculous. To paperbugs, Gold is a bubble about to pop and only stocks make you money

The much-hyped economic recovery has suddenly disappeared into thin air as economists and mainstream analysts are left scratching their heads in bewilderment. But since the herd couldn’t see the biggest collapse in 75 years coming, what makes you think they can recognize a double dip before it develops? 2nd quarter revenue misses from stalwarts like JP … Continue reading