Economy

Most economists (primarily Keynesians and monetarists) believe that authorities can control the money supply and interest rates, and most neo-Austrians believe that the Fed is all-powerful when it comes to inflating - that whatever inflation rate it wants, it simply manufactures. Is that true or false? Read on for the answer.

Q: Is it correct to assume throughout that an expanding trade deficit impacts the economy negatively? A: No, the relationship, if there is one, is that there has been a positive -- not negative -- correlation between the stock market and the trade deficit. Let me explain.

If oil prices remain anywhere near the current levels for a prolonged period – something the Saudis are aiming for – Canada’s economy is in serious trouble. Here's why.

Should we be concerned when tepid economic growth and low inflation are accompanied by increasing public and private debt? Are we borrowing just to stay alive? [As I see it,] national governments will increase national debt loads in order to stay in power until one or more of them default. Then their will be financial panic which will most certainly be deflationary. Here's why.

There exists in the Congress, in the Obama administration, in the media and on Wall Street, a national belief that America can print paper money and grow its economy as its route map out of debt. With annual GDP growth expectations of 2% to 3% over the next several years, this is a completely false hope!

These days anything with a sustained gain is called a bubble that’s just about to burst so what’s an investor to do?

Martin Armstrong provides a remarkable explanation of what is going on right now with the U.S. dollar, bond yields and the current price of gold. It would be well worth your time to read and reflect on what he has to say.

War is as much a policy response to economic malaise as it is a political response to a threatening foreign power so don’t be surprised then if war rhetoric finds its way back into the headlines in 2015.

We are heading for a derivatives crisis unlike anything that we have ever seen. It is going to make the financial meltdown of 2008 look like a walk in the park.

This article takes a look at the expected trends in the price of oil, cost of living and currency wars and how they most likely will impact inflation.