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Tag Archives: inflation

Big Difference Which Kind of Hedge It Truly Is

It isn’t inflation which is driving gold higher, at least not the current levels of inflation. According to the latest update from the Bureau of Economic Analysis, the Federal Reserve’s preferred inflation calculation, the PCE Deflator, continues to significantly undershoot. Monetary policy explicitly calls for that rate to be consistent around 2%, an outcome policymakers keep saying they expect but one that never happens. For the month of July 2019, the index...

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THE FED’S CAPITULATION: WHAT IT MEANS FOR GOLD INVESTORS

“Perhaps they think that they will exercise power for the generall good, but that is what all those with power have believed. Power is evil in itself, regardless of who exercises it.” – Ludwig von Mises, Nation, State, and Economy After the Federal Reserve’s monetary policy U-turn earlier this year and the central bank’s decision to cut interest rates for the first time in a decade, mainstream investors and analysts believe that holding rates lower and for...

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THE FED’S CAPITULATION: WHAT IT MEANS FOR GOLD INVESTORS

“Perhaps they think that they will exercise power for the generall good, but that is what all those with power have believed. Power is evil in itself, regardless of who exercises it.” – Ludwig von Mises, Nation, State, and Economy After the Federal Reserve’s monetary policy U-turn earlier this year and the central bank’s decision to cut interest rates for the first time in a decade, mainstream investors and analysts believe that holding rates lower and for longer will help keep...

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“More of the same” at the ECB increases gold’s appeal

“The intellectual leaders of the peoples have produced and propagated the fallacies which are on the point of destroying liberty and Western civilization.” Ludwig von Mises, Planned Chaos It took multiple meetings and over 50 hours of official negotiations for EU leaders to reach an agreement on the appointments for the top jobs of the EU and the ECB, but in mid-July the results finally came in. The ECB was particularly in focus, as bad news keeps piling up for the Eurozone economy and...

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“More of the same” at the ECB increases gold’s appeal

“The intellectual leaders of the peoples have produced and propagated the fallacies which are on the point of destroying liberty and Western civilization.” Ludwig von Mises, Planned Chaos It took multiple meetings and over 50 hours of official negotiations for EU leaders to reach an agreement on the appointments for the top jobs of the EU and the ECB, but in mid-July the results finally came in. The ECB was particularly in focus, as bad news keeps piling up for the...

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The Path Clear For More Rate Cuts, If You Like That Sort of Thing

If you like rate cuts and think they are powerful tools to help manage a soft patch, then there was good news in two international oil reports over the last week. The US Energy Information Administration (EIA) cut its forecast for global demand growth for the seventh straight month. On Friday, the International Energy Agency (IEA) downgraded its estimates for the third time in four months. That wasn’t all, as the EIA’s report focused in on some more sobering aspects...

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I Know Usury When I See It, Report 4 Aug

“I know it, when I see it.” This phrase was first used by U.S. Supreme Court Justice Potter Stewart, in a case of obscenity. Instead of defining it—we would think that this would be a requirement for a law, which is of course backed by threat of imprisonment—he resorted to what might be called Begging Common Sense. It’s just common sense, it’s easy-peasy, there’s no need to define the term… This is not a satisfactory...

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THE ROAD TO SERFDOM – BY THE EXAMPLE OF VENEZUELA – PART II

“Inflationism, however, is not an isolated phenomenon. It is only one piece in the total framework of politico-economic and socio-philosophical ideas of our time. Just as the sound money policy of gold standard advocates went hand in hand with liberalism, free trade, capitalism and peace, so is inflationism part and parcel of imperialism, militarism, protectionism, statism and socialism.” Ludwig von Mises, On the Manipulation of Money and Credit, p. 48 Claudio Grass (CG): We have all...

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Oh Inflation, du Knacknuss!

Monatlicher Erklärungsbedarf: EZB-Vizepräsident Luis de Guindos an einer Pressekonferenz. Foto: Reuters Volkswirtschaften dies- und jenseits des Atlantiks stehen vor demselben Problem. Die Inflation ist tendenziell zu niedrig. Denn die meisten Notenbanken orientieren sich an einem mittelfristigen Zielwert für die optimale Inflationsrate. In der Regel liegt er bei 2%. Da die Teuerung tatsächlich beträchtlich tiefer ausfällt, verkünden die Zentralbanken in den USA, Euroland, Japan und auch...

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When Verizons Multiply, Macro In Inflation

Inflation always brings out an emotional response. Far be it for me to defend Economists, but their concept is at least valid – if not always executed convincingly insofar as being measurable. An inflation index can be as meaningful as averaging the telephone numbers in a phone book (for anyone who remembers what those things were). If you spend $1,000 a month on food for your family, and food prices rise 6% generally...

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