Tag Archives: inflation

The return of the Euro debt contagion and drop in the bond markets across the world is pushing interest rates higher and it has investors concerned and rightly so - and nowhere has the concern been more prominent than in gold. [Let me explain.] Words: 759

Most economists and investors still labor under the illusion that there’s a way out of debt that doesn’t involve a drastic reduction in the paper value of wealth but smart investors aren’t so sure and want at least a portion of their assets out of the financial system, i.e. in gold bullion. Words: 649

In Europe, they were able to come up with a clever moniker, PIGS, to succinctly represent [and name the countries in dire financial straights - Portugal, Iceland, Ireland, Greece and Spain] the most boorish animals on the farm, and [I have taken it upon myself to call the U.S. state budget crises] the story of CAIN (California, Arizona, Alaska, Illinois, New York and New Jersey), the seven most rotten pillars of our union, and (Un)Abel, the country as a whole, which is (Un)Abel, i.e. unable, to do anything about the impending crises. Given the current political climate and implicit anti-bailout mandate of the new Congress, the Federal government might be powerless to do anything but accept painful state defaults. Before we know it, we could all be ancestors of evil... 2011 could be the year that CAIN starts to face some serious trouble, and may need some serious help to avoid killing his brother (Un)Abel! Words: 1529

Fox News' Glenn Beck has repeatedly stoked fears that the U.S. would see "massive inflation," stating, as far back as 2008, that inflation would go "through the roof" in the "next year." In fact, inflation remained low in 2009 and 2010 and looks to remain the same in 2011. Let's review Beck's prognostications one by one and come to our own conclusion. Words: 1764

The National Inflation Association (NIA) believes it is very unlikely that our representatives in Washington will have the political backbone and courage to implement any of the National Commission on Fiscal Responsibility and Reform's proposed cuts in domestic and defense expenditures and increases in tax revenues. [Instead, as the NIA sees it,] the U.S. is on a path towards exploding budget deficits in the years ahead that could cause an outbreak of hyperinflation by the end of calendar year 2015. Words: 887

Gold will hit $8,000 by 2015 and if the gold:silver ratio reverts to norm silver will reach $400. Gold and silver are so cheap today you should ignore the current price and just pick one day every month and buy the precious metals. Sometimes you will get them at a lower price and sometimes you will pay more, but, over time you will accumulate the precious metals at a good average cost. Words: 1236

"QE 2" is radically different – and radically more dangerous – than the risky games that were played with earlier "quantitative easings". This brief article is intended to warn readers about some of the key differences this time around. Words:

Many investors are struggling to understand the ramifications of the recently announced quantitative easing (QE) plan. The bottom line is that: QE (2) has major future implications for inflation and price of gold and silver. Words: 668

The magnitude of current private and government debt, coupled with massive unfunded contingent liabilities for promises of future services to their citizens, will prove to be impossible for many nations to fund. Massive inflation in the money supply will become the preferred vehicle to deflect the default monster and will result in vastly devalued currencies and price inflation as a prelude to default. Such action will be a desperate attempt to buy time to stave off the inevitable and will result in social unrest caused by persons whose comfortable lifestyle and elevated standard of living is about to disintegrate before their very eyes. Words: 1525

The gold bubble is preparing to burst. Investors have endured panic for three years, and gold has rightfully gone up. Unfortunately for current gold investors, [however,] fear/panic is diminishing by the day and without that essential element, the big money will exit the trade...Those left carrying gold in their portfolios will be trying to come up with reasons to justify their holdings... [and there is considerable] confusion of rationale to [support] the precious metal's continued rise. Words: 606