While speculation is spreading that the Bank of Japan may increase its bond-buying program, with the dual goals of increasing economic activity and filliping the rate of inflation to 2 percent, influential members of the money establishment are asking “Is 2 percent inflation high enough?”
Around the world, central banks have joined in fighting a common enemy: lower prices. But, when did lower prices become the enemy?
Expectations of when the Fed will hike interest rates are driving the markets. However, no interest rate increase is likely to come from the Fed until at least June–if not farther out–according to Fed statements following the March FOMC meeting. This means that the federal funds rate will remain at the target of zero to
It is becoming even more clear that Establishment economists are now equating the rate of inflation to prosperity. Across the board, they are clamoring for the Fed to take action that will result at least 2 percent inflation.
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.
Precious metals are now three years into what I believe is a correction in a very long bull market that has still further to go. Yet suffering through such dismal price action after ten years of rising prices is trying, despite predictions of higher prices. I have one client who regularly emails me with questions
In “Bubbles, Bubbles Everywhere” John Mauldin says he’s not predicting a stock market top but offers strong evidence that stocks look “toppy.” Excerpted from the piece: Humans Never Learn
The demand for gold is largely driven by people’s desire for jewelry and artistic creations from the pure, soft metal. This is particularly important in Asian countries such as India where it plays a strong role in the culture and religion. But as we also know, from the reports by Vietnamese “boat people” who escaped
In the 1960s, I attended the University of Chicago and spent many hours with Milton Friedman and graduate students in his economics department. They called themselves “the Chicago school,” and they stood apart from the professors of economics at Harvard, MIT, Stanford, et al. Those were the days of High Keynesian economics. The Chicago school
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