After not being significantly large enough to make headlines for years, the US trade deficit is back in the news after ballooning 40% to $51 billion in March. $37.8 billion of the deficit was with China. The CBO projects a record high $486 billion trade deficit for fiscal 2015.
Establishment economic thinking is that the “right” rate of inflation is 2%. Thoughts on this position can be found here: The Goal of 2% Inflation, Rethought — New York Times. Japan is falling far short of 2% inflation, despite the Bank of Japan buying ¥80 trillion worth of bonds each month. Analysts are now speculating
In a video interview with Barron’s editor Jack Otter, famed Swiss investment advisor, fund manager and publisher of the Gloom Boom & Doom Report Marc Faber gives his economic views for 2015.
As European Central Bank President Mario Draghi has been promising (threatening?) for more than a year, the ECB finally is about to begin a quantitative easing program. The program most likely will run for two years.
With the national debt now exceeding $18 trillion and having jumped 70% in the last six years, there are many cries for a return to the gold standard, which, it is believed, would limit government spending that has resulted in the massive increases in the national debt. A gold standard is a monetary system in
“The slump in global oil prices,” reports the Financial Times (1/6/15), bolsters “the case for an ambitious programme of government bond buying by the European Central Bank.” In Germany, the Eurozone’s largest economy, consumer prices in December rose only 0.1 percent versus 0.5 percent the year to November.
Charles Plosser and Richard Fisher, presidents of the Philadelphia and Dallas Feds, respectively, announced plans to retire, leaving the Fed in the hands of inflation doves who seemingly have no fear of inflation.
The foundation is being laid for massive worldwide inflation. Expansive money creation programs in the world’s major economies have been under way for years, now the Eurozone is about the rejoin the game.
China is the latest to join the money printing binge, this time printing the equivalent of $81 billion. The goal: to fillip an economy that grew in August at “only a 6.9 percent” annualized rate. If the US economy were growing at 6.9 percent, the Dow would be at 25,000. The world’s central bankers are
Fears of financial crises aside, the primary reason for owning gold is as a hedge against inflation, inflation being defined as an increase in the money supply. As more money is printed, the dollar loses value and prices rise. A excellent example of this principle is the menu at an iconic restaurant in Phoenix, Durant’s.