Tag: inflation

Gerald Celente Exclusive: “If rates go up too high, the economy goes down, end of story”

| March 12, 2018 | Category: Economy
Gerald Celente Exclusive: “If rates go up too high, the economy goes down, end of story”

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason: It is my privilege now to welcome in Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is perhaps the most well-known trends forecaster in the world and it’s always great to have him on with us. Mr. Celente, thanks again for the time today and welcome back. Gerald Celente: Oh, it’s always great being on. Thank you. Mike Gleason: Well, Gerald, it’s never a dull moment in Washington, D.C., these days. President Trump always keeps it lively. We have the never-ending Russia controversy, of course, the war of words with North Korea, and the intervention […]

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5 Big Drivers of Higher Inflation Rates Ahead

| February 22, 2018 | Category: Economy
5 Big Drivers of Higher Inflation Rates Ahead

Investors got lulled into a state of inflation complacency. Persistently low official inflation rates in recent years depressed bond yields along with risk premiums on all financial assets. That’s changing in 2018. Five drivers of higher inflation rates are now starting to kick in. Inflation Driver #1: Rising CPI The Consumer Price Index (CPI) is a notoriously flawed measure of inflation. It tends to understate real-world price increases. Nevertheless, CPI is the most widely followed measure of inflation. When it moves up, so do inflation expectations by investors. On February 13th, the Labor Department released stronger than expected CPI numbers. Prices rose a robust 0.5% in January, with headline CPI […]

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Raising the Debt Ceiling Means Jacking Up Future Inflation

| August 2, 2017 | Category: Economy
Raising the Debt Ceiling Means Jacking Up Future Inflation

The dramatic failure of the U.S. Senate’s last-ditch Obamacare repeal effort leaves Republicans so far without a major legislative win since Donald Trump took office. No healthcare reform. No tax reform. No monetary reform. No budgetary reform. The more things change in Washington… the more they stay the same. Despite an unconventional outsider in the White House, it’s business as usual for entrenched incumbents of both parties. The next major order of business for the bipartisan establishment is to raise the debt ceiling above $20 trillion. Since March, the Treasury Department has been relying on “extraordinary measures” to pay the government’s bills without breaching the statutory debt limit. By October, […]

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Gold and Silver Are “Asymmetric” Trades

Gold and Silver Are “Asymmetric” Trades

An asymmetric trade is a situation where investing a relatively small amount of money holds the potential of yielding a profit many times the amount of the original sum at risk. In other words, where the risk to reward is skewed massively in the direction of reward. This took place recently with Bitcoin (BTC). Is this conceptually different from bets made years ago on Microsoft, Cisco, Amazon, or Facebook, which yielded hundreds of percent profit to intrepid investors? Does it have relevance to the possible returns during the next few years for those who hold physical gold and silver? I would answer “yes” and “yes.” The current “mania” in the […]

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Idaho Democrat Leader Brain Malfunction: “We Can’t Say Gold Is Going to Protect Us from Inflation When [It has Risen from] $27 an Ounce to $1,218 an Ounce”

| March 17, 2017 | Category: Price

The Dunning-Kruger effect is the idea that low-ability people tend to suffer from illusory superiority. The phenomenon, first studied by David Dunning and Justin Kruger, says that people who know the least tend to overvalue their own competence, and tend to believe that they are experiencing some sort of upper-echelon level of thinking. While the original study was conducted in 1999, we witnessed what appeared to be the Dunning-Kruger effect in action this past Tuesday on the floor of the Idaho House of Representatives. And while it’s only March, but we also have identified the front-runner for our “Aurophobe of the Year” award.  (Aurophobia is the irrational fear of gold.) During the March 14th floor debate […]

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Capital Controls May Be Coming to the US

Those who hoped President Trump would tone down his protectionist rhetoric will be unnerved six weeks into his tenure. From his meeting with business CEOs, Trump has put trade “front and center.” So far, all is going well for the president. Markets are inching higher, and inflationary forces have picked up. However, bringing back jobs and reducing the trade deficit will be a tougher task. (although jobs have set historic gains already) A Victim of His Own Success  Trump’s election unleashed the “animal spirits” that have been absent post-financial crisis. On the surface, this is good for the economy. The US is currently the only major country raising interest rates and enjoying […]

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What’s Behind the Recent Surge in Volatility?

What’s Behind the Recent Surge in Volatility?

BY HARD ASSETS ALLIANCE It’s no secret that people don’t like uncertainty. By nature, humans are generally creatures of habit—preferring stability and safe outcomes. This is especially true when it comes to financial matters. However, financial markets are almost always facing some type of uncertainty, be it corporate earnings, interest rates, or geopolitical events. The issues are often benign and the outcomes are non-events, but as we know, there are always surprises causing markets to react. The volatility index, commonly referred to as the VIX, is a measure of investor uncertainty and fear of the unknown. The VIX can go months at a time meandering along without much direction and […]

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Monetary Policy Playing With Fire: Inflationary Momentum Cannot Be Controlled

Monetary Policy Playing With Fire: Inflationary Momentum Cannot Be Controlled

We are currently witnessing one of the greatest experiments in human history. History teaches us: Neither mainstream economics nor central bankers are aware of how to control the specifics of inflationary dynamics. The pitiable attempts to regulate the level of inflation like a thermostat are testament to the hubris of monetary policymakers. Waves of price inflation happen unexpectedly and in very compressed time periods. As the following chart shows, this is confirmed by numerous historical episodes.

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Inflation Deniers Emboldened by Gold’s Struggles

| July 28, 2015 | Category: Economy
Inflation Deniers Emboldened by Gold’s Struggles

The inflation camp shares the conviction with deflationists that there is too much debt in the system. But they differ on the outcome. Harry Dent and those in his deflation camp figure that central banks and governments will ultimately be powerless to stop default. They think the purchasing power of the dollar will rise against everything else, including gold. We expect default to occur primarily through inflation, with debts stealthily repudiated through repayment in less valuable dollars.

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Sneak Preview: 10 Charts From In Gold We Trust 2015

Sneak Preview: 10 Charts From In Gold We Trust 2015

In exactly one week, the 2015 edition of the “In Gold We Trust” report will be launched. It is the 9th edition. With a global reach of some 1 million readers, it is probably the most read gold report worldwide. Although the gold report will be published in one week, GoldSilverWorlds had the privilige to “take a look into the kitchen” of precious metals expert Stoeferle. This article highlights 10 interesting charts from the upcoming report.

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Expect Deflation, Inflation And Hyperinflation In This Distorted Financial System

Expect Deflation, Inflation And Hyperinflation In This Distorted Financial System

Depending on the magnitude of additional “money printing” that the world’s central banks will unleash upon the global financial community, we could see hyperinflation in several countries within a few years. Why? Central banks will try everything to avoid or reverse a deflationary collapse in paper asset markets because a deflationary collapse is “game over” for their credibility, governments, and politicians. They will print and print more and continue to fuel the inflationary boom, and … the bigger the boom, the larger the distortions, and the deeper the collapse.

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Why You Should Have a Gold and Silver Seat Belt

Why You Should Have a Gold and Silver Seat Belt

Exchanging some of your “paper promises” (currency) for the physical financial reality of gold and silver on a regular basis makes more than just good business sense. It helps make sure that come what may in your financial life, your “financial insurance policy” will be there to help you out, when, not if, the chickens from so many years of unsound government policies come home to roost. Look toward Argentina, Venezuela, Russia and others as harbingers. Even now, the U.S. inflation rate is arguably several percent higher than the “official” figure. You would do well to pay attention and plan accordingly.

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The Beauty of Deflation

| January 21, 2015 | Category: Investing
The Beauty of Deflation

We do not know what the future entails when our existing monetary and financial systems break down, but we are convinced that gold and silver will offer security (at least) in the transition period. If we look at the gold purchases by the East, it also reveals how emerging markets have set their minds on gold. This further supports our conviction that a form of gold standard might regain a prominent status and take over once again. However, the prevailing monetary experiment called “fiat currency” is likely to persist for some time to come.

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17 Reasons Why I Trust Silver

| December 15, 2014 | Category: Investing
17 Reasons Why I Trust Silver

Based on war and inflation expectations, the long term dollar prospects, central banking and money printing policies, I expect silver to go much higher from here.

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