Inflation/Deflation

Inflation represents a loss of discipline that always ends up hurting a large number of people. Furthermore, the consequences of inflation can leave wreckage in which policymakers are left with no good alternative policies to follow. Words: 961

The Gold/Silver Ratio has been rising along with the strength of the US dollar.

To wind up with true hyperinflation, some very bad things have to happen. The government has to completely lose control and the populace has to completely lose faith in the system - or both at the same time. Will the U.S. go down that path? Let's review the situation.

When interest rates go down, that spurs economic activity, and that is good for stock prices, so when interest rates start going up rapidly, that is not a good thing for the stock market at all.

The Fed’s current raising of interest rates could trigger a credit collapse, ushering in deflation and a New Great Depression.

Exactly what is inflation, and how do we measure it? It is very important to investors, savers, and people in general, that we understand.

A recession is the scariest creature in the average investor's closet of anxieties...because they can mean lower home prices, lower stock prices and, of course, higher unemployment [but] if you're prepared for the next one, there will be plenty of opportunities when that downturn ends. [That being said,] the more you know about recessions, the better, so here are 8 must-know facts about them.

The Fed rate hikes will bring an end to inflation quickly and even bring about some deflation and they will quickly reverse their actions and, by that time, the market will be 25% to 50% higher.

It is commonly said that the Fed needs to tighten to fight inflation, which will make things good again once it gets inflation under control. I believe this is both naïve and inconsistent with how the economic machine works. Here's why.

The foundation for today’s inflation was laid many years ago by a central bank that reacted to every bout of serious economic and/or stock market weakness by pumping up the money supply, but it was in 2020 that ‘the rubber hit the road’ so to speak.