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.
Read More »True or False: Inflation Makes Gold & Silver Go Up
This one seems like a no-brainer. The government or the central bank prints more bonds, notes and bills, and prices for things go up in response. Gold is real money, so it must fluctuate along with the inflation rate. It’s basic physics but it doesn’t happen that way. Let’s examine the history of inflation and the precious metals since the low of the Great Depression.
Read More »True or False: Peace is Bullish for Stocks
It would seem logical to say that peace allows companies to focus on manufacturing goods, providing services, innovation and competition, all of which helps the overall economy but does peace, in fact, have anything to do with determining stock prices?
Read More »True or False: GDP Drives Stock Market Up & Down
Macroeconomic news supposedly explains only about one fifth of the movement in stock prices but if there is no accommodating theory, then the presumed causality involved is tenuous at best. Let me explain.
Read More »True or False: An Expanding Trade Deficit Is Bearish For Stock Market?
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.
Read More »True or False: Rising Oil Prices Are Bearish For Stocks (+2K Views)
A sensible story of causation regarding oil prices and stock prices made by countless economists is that "rising oil prices increase the cost of energy and therefore reduce corporate profits and consumers' spending power, thus putting drags on stock prices and the economy." Stunningly, as far as I can determine, however, no evidence supports that claim, as the discussion below will show.
Read More »Continued Low Oil Prices Could Seriously Damage Canada’s Economy – Here Why & How (2K Views)
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.
Read More »What In the Financial World Is Going On? A Perspective
We search the internet every day for the most informative articles which we then edit, abridge and re-format, where necessary, and then post on munKNEE.com so our millions of readers can quickly & easily read the latest - and best - financial articles available. It has become the internet's go-to site for those in the know.
Read More »Your New Car Today Is Compromising Your Retirement Tomorrow – Here’s Why
Savings statistics in the U.S. are terrible...because, [while] saving money is simple, prioritizing is hard. It’s very easy to...cut back on lattes to save money, but those little things...are not going to make a big dent in your budget. To truly save money you have to focus on the big picture issues, including things like transportation and...how new the car is that you own. Let me explain why that is the case.]
Read More »Several Excellent Financial Articles From This Week That You Probably Missed – Take a Look
We are bombarded by a cacophony of poorly thought out and poorly written and presented economic, financial and investment "information" every day of our extremely busy and complicated lives. No wonder we miss some great articles in the process. Don't worry, though, because we have the time and resources to do it for you. Below are several articles from this week that you probably missed which are well worth your attention. Enjoy.
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