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
It was an embarrassing defeat for the US as it failed to keep its major allies from seeking membership in the China-sponsored Asian Infrastructure Investment Bank (AIIB), which will provide Asian countries an alternative to the US-dominated IMF, World Bank and Asian Development Bank. Allies seeking membership include the UK, Australia, Germany, France and South
Around the world, central banks have joined in fighting a common enemy: lower prices. But, when did lower prices become the enemy?
Following the March 18 “Statement” by the FOMC that any interest rate increase would probably not come until September, stocks moved from negative territory into big upside gains. Truly, the markets liked the idea that any interest rate hike would put off until later in the year. However, the following week the Dow Industrials plunged
Wars, economic crises and stock market declines have major impacts on investor interest in the precious metals. Leaving the potential for wars and economic crises aside, what is the likelihood that stocks are set to enter a period of declining prices?
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
Friday, March 20, the nearly 100-year old manually done London gold fix will end, replaced by an electronic version. The question is will the new method result in a more transparent London fix or will it be a continuation of the same old game.
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