Deflation

Greece, Europe’s Achilles Heel continues to implode under its budget deficit and total debt burden sending a series of strengthening shock waves across Europe’s credit and financial markets…..

While Gold is a hedge for inflation and deflation, that doesn’t mean that gold stocks are a hedge or outperformer in either environment. As we wrote last year, gold stocks tend to perform better when…

I look at gold vs. general (positively correlated) industrial metals quite a bit, but in listening to the Bob Hoye interview here, I got the prompt to check out copper-gold (CGR)….

It is time to start bringing the famous von Mises event back into the equation. More and more it looks like one of only two things; interim deflationary ‘impulse’ leading to Crack Up Boom or ‘do not pass go, do not collect $200 and go straight to Crack Up Boom’…..

A few weeks ago we wrote about the true cause of hyperinflation, which is a major break or failure in the bond market. It has nothing to do with demand, bank lending or the velocity of money as many have suggested. It is a confidence issue….

However the evolving global currency crisis ultimately manifests itself, either total deflation and a debt-liquidating depression or a hyperinflationary blow-off, David Morgan of The Morgan Report says….

The bearishness in the retail Gold crowd is palpable right now and misplaced in my opinion. No one can predict the short term with any consistency (though it is fun to try!). Sentiment and interest in the Gold patch are at indecipherable lows despite $1000 now acting as a floor for the Gold price instead of the ceiling.

…The key point to understand is that the background dynamic is highly deflationary, but as politicians and business leaders do not want to face the grim consequences of deflation, which at best could result in their losing office and their positions….

The rise and fall of paper currency notes relative to one another in the current economic setting reminds me of a seesaw – one currency goes up, then it goes down while its pair currency does the opposite. One currency may rise a little more in net terms over a period of time or vice versa based on various factors.

Since up is down and left is right in an anchorless fiat currency world, one must keep a perspective on things. As a Gold investor, I am not exactly bullish on the U.S. Dollar. However, I also am not bullish on other international paper currencies, either. I wouldn’t place faith in the Euro, the British … Continue reading