Looking forward, our formula for working out of the current deficit pattern would be to have the Republicans regain control of one house of Congress (but not both houses of Congress plus the White House). The economy fully recovers. I’m not ready to forecast surpluses to come, but I can envision the deficits coming down to reasonable magnitudes. Words: 1438
Read More »Forget the Doom and Gloom! TIPS Yields Say NO Inflation or Stock Market Decline
Real yields on TIPS are very good indicators of the bond market's growth and inflation expectations. Currently they are telling us that the bond market expects sub-par growth and no significant increase in inflation. Words: 401
Read More »Embry: Gold Price to Go Parabolic in Near Future – For Good Reason! (+2K Views)
As inflation rears its ugly head and future demand for gold promises to overwhelm mine supply, gold’s price will launch a parabolic rise from current levels in the near future. Gold has much, much further to go. Words: 536
Read More »Here's How the Fed Intends to Avoid Major Inflation Down the Road
Ultimately, the Fed’s official inflation containment strategy is to always be able to offer banks a better deal than any private investment alternative. A better deal means the bank taking in more income, which means the banking executives involved get bigger bonuses. The source of funding for this ability to always pay more than the private markets is the ability to directly create a limitless amount of money. At this point it is a very low interest rate, but the rate can go as high as needed, when inflationary pressures build. Words: 2735
Read More »The Latest Economic Data is Being Massaged and Sugar-coated
I believe that the worse things get, the better they will sound coming from our nation’s leaders/ pundits. Words: 1132
Read More »Five BIG Reasons Interest Rates MUST Rise
Brace yourself for one of the greatest interest-rate surges in decades — beginning first in the long-term Treasury markets ... later spreading to shorter term Treasuries ... and ultimately enveloping nearly every loan, debt, credit, and money market instrument on the planet. This rise may not begin with great fanfare, nor will it immediately upset the apple cart of the economic recovery, but with the march of time, it WILL gain momentum and reach critical mass. Words: 614
Read More »NOTHING Can Stop Coming Inflation: Bank for International Settlements Report
A recent research paper* by the Bank for International Settlements, entitled "The Future of Public Debt: Prospects and Implications" paints a terrifying prospect for the inhabitants of most of the developed world with deficits spiralling out of control for every western industrialized country under study and inflation a foregone conclusion as a result. Words: 1128
Read More »Volcker: Tax Hikes Likely Needed to Tame Deficit
The United States should consider raising taxes to help bring deficits under control and may need to consider a European-style value-added tax and a carbon or other energy-related tax may become necessary says White House adviser Paul Volcker. Words: 758
Read More »Here's the Best Way to Protect Against both Inflation AND Deflation
There are very compelling arguments for both inflation and deflation. The answer will eventually depend on decisions made in Washington and how people react to those decisions. For now, let’s stop fooling ourselves and admit that we don’t know. It is a problem that has to be dealt with and there is no easy medicine. Either path will be painful, but that’s what we get for our two and a half decade debt binge. Words: 1142
Read More »Dividend Growth and Sustainability Crucial in Any High-Yield Stock Selection
I like to hold stocks with different yield/dividend growth characteristics where yields are somewhere between 3% and 5% and dividend growth is in the upper single digits or in the double digits. Words: 671
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