Posts Tagged ‘hyperinflation’
Consequences of Debt Excesses and Irresponsible Currency Creation
Debt has consequences. As does currency creation to temporarily mask the economic effects of excessive debt. While an entire book could be written on how the consequences of debt and high levels of currency creation will manifest in the months and years ahead, in this issue of “Portfolio Watch,” I will examine two…
Read MoreAn Inevitable Outcome
Last week, I discussed that stagflation was the most likely immediate economic outcome in my view. Just in case you missed last week’s post, stagflation is defined as price inflation combined with a shrinking economy. Ultimately though, I believe we will see a very painful deflationary environment that may rival the 1930s. …
Read MorePossible Economic Outcomes
From where I sit, it seems that stagflation is the most likely economic outcome near term. Stagflation is defined as inflation combined with economic contraction. The official inflation rate is 8.5%, but any long-term reader of “Portfolio Watch” knows this official number is highly manipulated. The actual inflation rate, absent favorable adjustments…
Read MoreAnatomy of an Inflation
The Federal Reserve announced a $15 billion per month taper and markets rallied. All markets rallied as noted in the databox above; stocks, bonds, and precious metals all moved higher. The Dow to Gold ratio remained in the neighborhood of 20. I stand by the forecast of an ultimate ratio value of…
Read MoreMoney Printing, Inflation and Unintended Consequences
As I have been discussing for a very long time, the current economic policies being pursued will likely result in the realization of Thomas Jefferson’s warning to us more than 200 years ago. If you are a new reader, Mr. Jefferson warned us that we should not allow private bankers to control the issue of…
Read MoreArtificial Markets and Where We Go From Here
In my view, we are entering a time of significant financial transition. Most financial markets are now artificial. As I’ve discussed, the CARES Act changed the financial rules to allow for even more money creation. Prior to the CARES Act becoming law, the Federal Reserve, the central bank of the United States, could only purchase…
Read More