Global Market Commentary, Analysis and Investments
While inflation seems to be on everyone’s mind these days, misconceptions abound. Indeed, few concepts in economics are as misunderstood as inflation. This month I take a look at some common questions about inflation, and a few that I wish more people were asking.
Is hyperinflation coming to the U.S.?
[Read more...]As if China does not have enough problems with inflation as it is, being 5.1% overall and with 11.7% inflation in food prices, now, astonishingly, Bloomberg reports that “Beijing will raise the minimum wage by 20.8% in 2011, becoming the latest local government to lift pay in a country where inflation is running at the fastest clip in more than two years.�
[Read more...]The lights of the Mogambo Security System (MSS) glowed dimly in the gloom of the bunker as I cowered in the darkness, and there were no sounds except the thumping, thumping, thumping of my terrified heart at The World Outside (TWO), a place I consider to be a vicious, hostile environment containing not only enemies of every sort, both real and imagined, but family members who want to know if I am coming out for dinner, or to tell me that someone is on the phone for me, or that somebody is going to greedily eat the last of my treasured Double-Stuf Oreos, somehow trying to get me outside and into their clutches so that they can take all my money and ask me to sign various forms and documents.
I was intrigued that a guy named David Thurtell, of Citigroup, surprisingly said, “The liquidity pumped out by central banks means that there is a lot of money sloshing around that needs to find a home.�
I was so intrigued that I was tempted to use it as the basis for my first report to the new supervisor for this quadrant of the galaxy, Karpus Klegg the Implacable, at his new office at Intergalactic Headquarters after the “palace coup� and interstellar personnel shake-up that I just found out about.
[Read more...]There are a lot of things in this world that I do not understand, and perhaps it is because of this persistent befuddlement that, for some mysterious reason, I think it is Highly, Highly Significant (HHS) that the Chinese Gold & Silver Exchange is planning “a first�; an international gold contract denominated in renminbi.
[Read more...]There are increasingly those who predict hyperinflation, which is popularly defined as rapidly-rising prices that soon reach un-payable levels, and which is always caused by the true definition of inflation, which is (according to the Mogambo Big Book Of Economic Stuff (MBBOES), “A gigantic growth in the money supply, which is caused by banks deliberately acting like greedy, lying, filthy pigs who deserve to be thrown in jail.�
[Read more...]You can’t say it didn’t work. At least one of Mr. Bernanke’s aims was realized.
He went into the bond market, and bought US debt, in order to lower long-term interest rates. That was a bust. Long rates went up, not down.
He also wanted to raise inflation rates. No success there either; consumer prices are flat. The CPI is still registering the lowest increases since the ’50s…rising at about 1% per year.
[Read more...]Mr. Ben Bernanke. Mythbuster!
“One myth that’s out there,� he told 60 Minutes, “is that what we’re doing is printing money.�
Ha. Ha. Ha. Can you imagine anything so laughable? So ridiculous? So absurd?
And to think that even we, at The Daily Reckoning, believed it. How could we be so credulous?
[Read more...]Apparently, late last night, from out of the spooky darkness, there was a sound that woke up my wife, and so she woke me up, wanting me to get up and go see what it was, which I figured would probably end up with me confronting some desperate, drug-crazed burglar who will pull out a knife and stab me over and over.
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U.S. Shale Gale vs. the Debt Leviathan
The wind was blowing so hard on the banks of the River Thames we had to replay it a few times to hear correctly.
“The need for OPEC to…”
We turned up the volume some more…
“The need for OPEC to be a player in the U.S. oil market isn’t really there. We’re not going to be depending on them like we used to.”
[Read more...]Click for detailed story