The case against deflation

Regular readers will know I am in the inflation, possibly hyperinflation camp; but there are those that think the future is more likely to be deflationary. In the main this is the view of neoclassical economists, Keynesians and monetarists, who generally foresee a 1930s-style slump unless the economy is stimulated out of it.

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Weekly Market Wrap: 26 April 2013 – Markets reach major inflection point

This regular column reviews the condition of several different markets including: stocks, commodities, currencies and precious metals. This week focuses on the Dow Jones Industrial Average, the S&P 500, sugar, the US dollar, and gold.

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The Long Wave Versus the Printing Press: Another 2008?

Marc Faber of the Gloom Boom Doom Report was interviewed by Bloomberg on Friday, and of course topic number one was the brutal takedown of gold. Not all that surprisingly, he likes the resulting buying opportunity and expects “a major low in gold within the next two weeks.”

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Recommended Reading: Abe Pulls Pin on JGB Grenade

Shinzo Abe is pressing ahead with his goal of devaluing the yen. On Tuesday he pressured the BoJ into adopting a 2% inflation target which paves the way for open-ended asset purchases. However, Abe’s cure could very well prove worse than the disease.

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Britain’s Coming Financial Collapse: Part II

Richard Martin believes that Britain is heading for a financial collapse and that “no country has ever recovered from the financial position Britain finds itself in today.” I spoke to Richard to find out more, and to find out what investors can do to protect themselves.

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Why today’s system of fiat money is doomed to fail & what it means for investors

There is a clear link between fiat money, the supply of money in an economy, and the 30-year boom that came to an end in 2008. By understanding this link investors can see how fragile the system is, and what to do to protect themselves from its inevitable collapse.

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The Forgotten Depression Of The 1920’s & What It Teaches Us

Very few people have heard of the Forgotten Depression of the 1920’s that affected the US from 1920 to 1921. Despite its severity economic growth was quickly restored thanks to a President who chose not to intervene in the markets and rather let free-market forces cleanse and reset the system.

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Playing with fire: Not so Super Mario disappoints investor’s by failing to deliver new bailout measures

ECB President Mario Draghi, aka Super Mario, disappointed investors yesterday when he failed to deliver any new bailout measures. As a result of the central banks lack of action markets across Europe and Asia tumbled, and Spanish and Italian bond yields shot back up to dangerous levels.

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The choice is simple: Massive money printing or global depression

The choice facing world leaders is a simple one: Either they engage in massive money printing, or they let the world slip into another great depression. This article examines why they have no choice but to print money, something which will have significant consequences for everyone.

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Shorting the yen: The trade of the decade is looking better & better

The recent strength in the Japanese yen versus the US dollar and the euro, coupled with the deteriorating global economic outlook, has increased the likelihood that the Bank of Japan will carry out more money printing. This adds to the case for going short the Japanese currency.

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