Monday, October 24th, 2016 MST

Category: Economic Crisis

Fear of deflation guarantees inflation

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.

Whatever it takes

In July 2012, Mario Draghi, president of the European Central Bank, steadied European money markets simply by saying, “. . . the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” Apparently, simply promising to do whatever it takes was enough because the ECB had

The Poverty of Nations

The Left is making “income inequality” a cause célèbre , even trying to make it a campaign issue for this election cycle.  Academicians and theorists present many reasons for why the “top one percent” earn so much more than the middle class, but lost in the discussions is why wealth is created by some people

Cheap money: get used to it

Central planners and their minions rarely–if ever–admit the failures of their programs.  In fact, they rationalize and even support their continuations when the schemes fail, laying blame on “the markets” or someone else’s inability to recognize the brilliance of their interventionist schemes.  Martin Wolf, the Financial Times chief economics commentator, recently lamented the lack of

Gold up, stocks down on China fears

For years, reports that China’s banking system is at risk mostly have been ignored. Now, though, investors are listening as Chinese officials have admitted to problems in the Chinese banking system and its economy. From March 14’s Financial Times: China warning on defaults sparks fears over growth Bad debts on rise * ‘Lehman moment’ concerns

Page 5 of 16« First...34567...10...Last »