Economy

This article suggests that the Australian and Canadian dollars, and the British pound Sterling, can expect to decline significantly relative to the U.S. dollar in the months ahead and gold to decline even further relative to industrial commodity prices. Here's why.

Given the recent upside breakout in the U.S. dollar I’ve been getting a lot of questions about the reasons behind the strength as well as implications for the stock market. Here are my views on the situation.

History strongly suggests that, rather than a return to a nice, placid world of “normal” interest rates, we are likely to see a continuation of the borrowing binge/asset bubble until real rates spike as a result of either soaring nominal rates soar or plummeting inflation. Here's why that is the case.

The Fed and the bond market are responding appropriately to declining risk aversion and a somewhat improved economic outlook. There is no reason to fear the end of QE or the beginning of higher short-term interest rates. Let me explain further.

A temporary period of deflation will result from the end of the Fed's massive asset purchases followed by a period of inflation that will make the '70s seem like an era of hard money. Here's why.

Much of the conventional economic wisdom prevailing in financial circles - largely subscribed to as a basis for governmental policy, and widely accepted by the media and the public - is based on incomplete analysis, contra-factual assumptions, and false analogy. Below are 15 such fallacies and explanations as to why each is such.

There have been many econoblog posts of the form, "ha, ha, the people predicting inflation have been wrong so far, when will they give up?". Let me try to explain why we know high inflation is coming eventually.

I read hundreds of financial articles every week and most are nothing more than "financial entertainment" - unfounded forecasts, fear mongering or cheer-leading. That being said, there are a number of articles that are absolutely MUST READS if you are to become an informed investor and be in position to understand what is evolving in the financial environment and act accordingly. Introductory paragraphs and links to a number of them are provided in this post.

How safe is the cash in your wallet? Just as with hard currencies such as dollars and pounds, the safety of your bitcoins depends on your own vigilance. If you are thinking about using Bitcoin, or already are, this infographic outlines the security concerns and how to go about alleviating them.

There is an idea floating about to stimulate the economy via providing cash directly to consumers. It may just be a trial balloon at this point, but I expect the idea to gain traction. Here's why.