Inflation

Jim Grant went on to say, “ I think Gold Mining shares which are universally despised represent a call on the surviving monetary asset. It’s one area of absolute compelling value.”  

Over the years we have read many times that the Bank of Japan (BOJ) has rapidly inflated the supply of Yen.

The following is excerpted from a commentary originally posted at www.speculative-investor.com on 19th August 2012.

As Spain is bailed out, with some mystery over who exactly is going to be footing the bill, we are forced to focus once again on the existential threat facing the euro: will the teenage currency make it through adolescence? Are these just growing pains or the “beginning of the end”? The possible answers, the … Continue reading

To paraphrase Einstein, not everything worth measuring is measurable and not everything measurable is worth measuring.

“Is the Fed a Failure?” is the title of an article by Gene Epstein in the 27th February edition of Barrons magazine. The article draws on the work of economist George Selgin to argue that the answer to the question is yes, the Fed is a failure. Unfortunately, while this is the right answer the method used to come up with it is not persuasive.

Global markets are in the midst of a predictable relief rally to the technical bear market that recently became actualized off of various topping patterns that were in force for most of 2011.  It is important to note that this is coming off of a similarly predictable whiff of a deflation scare, as US and … Continue reading

The Greek population is in constant revolt with another 48 hour national strike underway against ever expanding announcements of economic austerity though to date little of which has actually been implemented and therefore risks at the very a least a delay of the latest tranche of Euro 12 billion in what has now become … Continue reading

By now everyone knows that Bill Gross/Pimco has sold down his/its Treasury exposure to zero.  Rather than ask “why,” quite frankly, my question has been “why did it take so long?”   In other words, anyone who knows anything about the bond market knows that it would be sheer stupidity to own Treasury bonds in a … Continue reading

Perhaps the greatest mystery in the world of finance and economics is why Fed Chairman Ben Bernanke refuses to acknowledge that paper money creation by central banks produced the “global savings glut” which, according to him, destabilized the global economy and led to the crisis of 2008…