purchasing power

Blog

What To Do With Your Cash?

Is it folly to hold cash right now? Or brilliant?
Saturday, July 22, 2017, 12:19 AM

Have you moved a material percentage of your financial portfolio to cash? Have you become so concerned about the meteoric ramp upwards in asset prices that you find it wiser instead to move to the sidelines, build "dry powder", and wait to re-enter the markets at saner valuations?

If so, you have my sympathies.

The past 5+ years have been brutal for savers pursuing this strategy. I know this well, as I'm one of those folks, too. » Read more

Blog

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The Fatal Flaw Of Centrally-Issued Money

Why the world's current money regimes will fail
Thursday, April 9, 2015, 2:03 PM

Centrally issued money centralizes wealth and generates systemic inequality. This is equally true of all centrally issued currencies.  But the inequity that is intrinsic to this system is politically and financially destabilizing, and so this system is unsustainable. » Read more

Blog

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The Dollar May Remain Strong For Longer Than We Think

Why demand for it is higher than other fiat currencies
Tuesday, September 16, 2014, 10:50 PM

I have long been a dollar bull, not for any over-arching reasons based on inflation, deflation, rising geopolitical multi-polarity or any of the other issues that touch on the dollar’s valuation vis-à-vis other currencies. My analysis focuses on a few basics:  the dollar’s status as the global reserve currency, Triffin’s Paradox (a.k.a. Triffin’s Dilemma) and global capital flows into the dollar and dollar-denominated assets such as U.S. Treasury bonds. » Read more

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Inflation - Crash Course Chapter 11

Our devaluing dollars are a historically recent phenomenon
Friday, August 29, 2014, 6:36 PM

For close to 300 years, inflation in the US remained very subdued. Small spurts occurred around major wars (Revolutionary, Civil, WW1, etc), but after each, inflation quickly trended back down to its long-term baseline. If you lived during this stretch of time, your money had roughly the same purchasing power your great-grandfather's did. » Read more

Blog

Peak Prosperity

Quantitative Easing - Crash Course Chapter 10

What exactly is this process that the world is betting on?
Friday, August 22, 2014, 9:34 PM

At the exponential pace at which the Fed is increasing the money supply, and knowing the huge challenges the Fed – and most other world central banks  - face in trying to stop or even slow down their money printing, the potential for a disruptive global inflationary period is very real.

So what exactly is quantitative easing» Read more

Blog

This Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banks

It likely signals a big downdraft in the stock market, too
Monday, April 15, 2013, 3:55 PM

I am very disappointed by, but not surprised at, the latest transfer of wealth to the bankers from everyone else.  The most recent gold bear raid has vastly enriched the bullion bankers, once again, at the expense of everyone trying to protect their wealth from global central bank money printing.

The central plank of Bernanke's magic recovery plan has been to get everybody back borrowing, spending, and "investing" in stocks, bonds, and other financial assets.  But not equally so, as he has been instrumental in distorting the landscape towards risk assets and away from safe harbors. » Read more

Podcast

Mike Maloney: Today's Low Gold & Silver Prices Are Not Realistic

The good news is that they can't last much longer
Friday, April 12, 2013, 8:49 PM

During this very tumultuous week for precious metals prices, Chris sat down with Mike Maloney, founder and owner of GoldSilver.com, one of the world's largest bullion dealers.

Mike is a true scholar of monetary history. His reasons for getting into the bullion business have their roots in a very predictable cycle that has happened time and again over the centuries (more accurately millennia): » Read more

Insider

Off the Cuff: Whither the US Dollar?

A hot debate worthy of your time
Thursday, March 28, 2013, 12:50 AM

In this week's Off the Cuff podcast, Chris and Charles Hugh Smith do something a little different.

Given the thoughtful and in-depth discussion resulting in our recent article on the future of the dollar's purchasing power, Chris and Charles engage in a fundamentals-based debate on the outlook for the U.S. dollar over the next decade.

This is one of those instances in which Charles, a valued contributing editor to Peak Prosperity, sees the future differently than Chris... » Read more

Podcast

Ask the Adviser: Risk-Managed Investing

Over the long term, the best offense is a good defense
Saturday, January 12, 2013, 7:48 PM

If you have money in the financial system (stocks, bonds, retirement funds, etc.) and you share the same skepticism most of our readers have about the markets' future stability, how should you invest those funds?

Most of the folks who inquire about our endorsed financial advisers are far more interested in preserving the purchasing power of their wealth vs. aggressively trying to beat the market average each year. But how exactly does one do that?

In this week's podcast, Chris sits down again with Mike Preston and John Llodra to discuss risk-managed investing. » Read more