Really Real Rates vs. Gold
by Adrian Ash, BullionVault
Friday, 10 May 2013
Quantitative easing and zero rates haven’t worked. So let’s have much more of ‘em, eh…?
GOLD attracts investment capital when other asset classes fail to deliver.
So now equities have clearly regained their appeal after more than a decade of what finance professionals would rather we called “sub-optimal” returns, gold investing has lost its urgency for money managers. Indeed, it’s become a neat [...]
Like an aging boxer still climbing into the ring when past his prime, Argentina’s President Cristina Fernández de Kirchner is on the ropes and staggering in response to the pummeling she is getting in the streets.
Kirchner’s latest gambit to push through legislation allowing voters to pick and choose the magistrates who appoint and remove judges sparked a protest of hundreds of thousands in the most recent demonstrations in the country.
February 9th, 2013
While Europe’s fiscal woes seem to be on everyone’s financial radar recently, andrightfully so, there is instability everywhere.
This is a global economic crisis and it’s affecting hundreds of millions of people all over the world.
Earlier this week Argentine President Cristina Kirchner responded to her country’s sky-rocketing inflation rates by freezing prices on food, a move Forbes magazine says will soon lead to widespread corruption in the business community and government.
This is Strongman Shelford reporting from Argentina.
We have multiple inflation rates . Official rate is around 10%
Private consulting firms: above 25%
We have more than 4 exchange rates now
we are under severe capital controls and we are not allowed to buy foreign currency for savings . not gold either since May, 2012.
Watch the video.
If you want to learn about economic doom, ask an Argentinian we have already been in hell lots of [...]
How the Fed Is Pushing Investors to Buy Junk Bonds
With no end in sight for the Federal Reserve’s fixation on low interest rates, a likely scramble for yield has intensified worries about dangers ahead for junk-bond investors.
The Fed’s announcement on Wednesday that it will tie near-zero rates to specific unemployment and inflation rates sent a clear signal: Those looking for return in cash and fixed income won’t get it [...]
A newly re-elected President Barack Obama will continue encouraging loose monetary policies that will fuel inflation rates down the road, and investors need to get ready now, said famed commodities investor Jim Rogers.
Under Obama’s first term in office, the Federal Reserve slashed interest rates to near zero and pumped the economy with trillions of dollars in fresh liquidity via a monetary policy tool known as quantitative easing, under which [...]
The Fed has decided to go all-out in fueling the next massive asset bubbles through its QE3 bazooka. The Fed announced plans to buy $40 billion worth of mortgage securities per month on an open-ended basis, while continuing to reinvest its income from the securities purchased during QE1 and QE2.
Now here is the dangerous side to this equation. This rally will also lead oil and grains to new highs, which [...]
Jared Cummans: Inflation is a common environment for most economies asprices tend to rise as time passes. Governments and central banks around the world mold policies in an effort to curtail inflation and keep it under control. Another less commonphenomenon is deflation, or the general decline in prices (and wages) and inflation rates fall below zero. Still an even more rare event is hyperinflation, an issue that does not ail nations often, but when [...]
Milk Prices May Rise as Drought Spreads
?KBOI – 21 hours ago
Milk Prices May Rise as Drought Spreads. Noel Hendrickson/Digital Vision/Thinkstock(NEW YORK) — The devastating heat and drought that now covers more …
Get ready for sticker shock, food buyers warned
Montreal Gazette? – by Meghan Potkins? – 2 hours ago
Get ready for sticker shock, food buyers warned … “We’re going to be looking at higher meat prices in the fall and early [...]
By way of post-mortem of this afternoon’s epic Paul vs Paul cage-match, we reflect on the various headlines the two gentlemen made during the event and in the context of the credibility with which one of the gentlemen discusses his ability to manage the world and the ‘ease’ with which he and his henchmen can control inflation (and that an unmanaged economy is subject to ‘extreme volatility’), we remind readers [...]
When we left the gold standard, we went on the oil standard – called the petro dollar
Countries selling into the US for dollars (Arabs/China/Exporters) have to do something with all their dollars, and much of it comes back in treasury purchases (funding our deficit) – hopefully investments in the US
Kissinger made a deal with the Arabs to limit oil investments here and in exchange they would buy treasuries over there with their dollars [...]
I think the problem many homeowners are facing is similar to mine. If you are a home owner, your wealth is largely tied up in your homes’ equity. Like a dog wining on a board nail, we know we are in an uncomfortable position, but not enough to get up and move.
We have 3 options which I will explain
1. We can stay put and change the terms of our mortgage into [...]
“By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”
~John Maynard Keynes
This year will mark my 32nd year in the business. I began my career in 1980 after spending several years in corporate life, which I did not find to my liking. I had too much of an independent streak and eventually came to the realization that I’d be much [...]
As we head towards 2012, uncertainty and growing pessimism are the dominant themes in the gold market right now. This might seem odd when one considers that the gold price is up better than 14% since January 1, with no clear signs that the fundamentals that have been driving the gold price higher over the last decade have changed.
Have the world’s central banks started selling gold again? No, they are [...]
Today sees policy meetings at both the Bank of England and the European Central Bank and we could see moves from both although action from the European Central Bank is much more likely, indeed very likely. I think that the ECB is more likely to follow the example of the Reserve Bank of Australia which cut rates by 0.25% this week than the Reserve Bank of New Zealand which lefts its [...]
The United States economy never really emerged from the recession that began in 2008 and is possibly headed for a more chronic depression, and the prognosis for recovery doesn’t look good, especially in 2013, says international investor Jim Rogers.
President Barack Obama has tried to spend the economy back into recovery, which never helps, Rogers told Newsmax.TV in an exclusive interview.
When an economy falls into a recession, which normally happens once [...]
We’ve been very, very clear that we will not allow inflation to rise above 2 percent. We could raise interest rates in 15 minutes if we have to. So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time. That time is not now.
Federal Reserve Chairman Ben Bernanke
December 6, 2010
With all of the problems in Europe, protests on Wall Street, [...]
Zimbabwe failed to break Hungary’s 1946 world record for hyperinflation. That said, Zimbabwe did race past Yugoslavia in October 2008. In consequence, Zimbabwe can now lay claim to second place in the world hyperinflation record books.
Highest Monthly Inflation Rates in History
Month with highest inflation rate
Highest monthly inflation rate
Equivalent daily inflation rate
Time required for prices to double
1.30 x 1016%
Mid-November 2008 (latest measurable)
“Absent deficit spending, we’re mired in the worst depression since the Great Depression,” observes Rob Arnott, “and the Fed may be making things worse.” We have negative real interest rates, and inflation rates in the range of 5%-7%. So, Arnott says, “if inflation kicks up another 1% or 2%… this creates some fairly serious downside risk for equities if the Fed continues on it’s current path.”
With continued volatility in all the markets, King World News interviewed five time Graham & Dodd Award Winner, Rob Arnott, who oversees more than $80 billion as the Founder & Chairman of Research Affiliates. Rob sub advises the Pimco All Asset Fund and ETFs for the Schwab, Powershares and Nomura. When asked about what he sees happening with stocks and the economy going forward, Arnott stated, “When real interest [...]
If inflation and exchanges rates were directly linked, then you should see a spike in inflation that matches your alleged spike in exchange rates. However, since 1992, the inflation rate has been steady, fluxuating between 2% and 4%. Those are extremely low inflation rates:
2011 = 2.78%, 2010 = -0.34%, 2009 = 3.85%, 2008 = 2.85, 2007 = 3.24
2006 = 3.39, 2005 = 2.68, 2004 = 2.27, 2003 = 1.59, 2002 = [...]
by David Galland of The Casey Report
The Road To Perdition
David Galland interviews Terry Coxon, The Casey Report
Terry Coxon worked side by side with best-selling author Harry Browne for years and is a rare expert in the arcane study of monetary systems. His remarks at this juncture in time, a time that might end up labeled in the history books as “Money Runs Wild,” are especially [...]
From BIA Behavior Intelligence:
BIA Behavioral Intelligence: Ben Bernanke at Federal Open Market Committee
June 22, 2011
BIA’s behavioral analysis of Mr. Bernanke’s comments during the June 22, 2011 Federal Open Market Committee press briefing produces a higher level of concern than the briefing in April. Questions covered a broad range of topics, many of which elicited responses that signal behavioral concern. Most of Mr. Bernanke’s [...]
Up to £8,736
Up to £13,052
£8,736 – £13,000
£13,052 – £19,396
£13,000 – £17,524
£19,396 – £26,156
£17,524 – £25,012
£26,156 – £37,336
People on low incomes have suffered higher inflation than those on higher incomes in the past decade, the Institute for Fiscal Studies has said.
The IFS said that the difference had been particularly strong since 2008. The poorest 20% of households faced an average annual inflation rate of [...]
What may surprise some is the fact that despite having growth significantly above the euro area average, Germany actually had an inflation rate that was slightly below average (2.7% versus 2.8%). And of all debt crisis struck countries, only Ireland (1.5%) had a lower inflation rate, while Portugal (4%), Greece (3.7%), Spain (3.5%) and Italy (2.9%) had higher inflation rates than Germany and the euro area average.
For several reasons, including [...]
Inflation in Zimbabwe peaked in 2009 at 13.2bn%, a world record
An ATM in Zimbabwe’s capital Harare has been issuing the old national currency, sparking rumours that the defunct bills are back in circulation.
For the last two years, Zimbabwe has used US dollars and South African rand after its world record inflation rates rendered its dollars worthless.
The BBC’s Brian Hungwe in Harare says most Zimbabweans [...]
“Bond yields fall in response to the lower inflation and the
increased confidence in the U.S. economy, which attracts
more foreign inflows. Unemployment holds near its current
4.9% rate, as real GDP growth is steady. Inflation rates
drop because of a stronger dollar and more rapid
productivity growth. The consumer price index (CPI) rises
only 1.2% in 2009, helped also by lower oil prices. But even
the core CPI is up just 1.7%, compared with 2.2% this year.
More robust growth helps [...]