Tag Archives: deflation

  • Blog

    Grant Williams: The Rules Of Investing Have Just Changed

    Few have any experience with the secular inflation lying ahead
    by Adam Taggart

    Friday, November 13, 2020, 10:01 AM

    7

    Secular deflation in the financing and operation of businesses has been one of the largest defining economic trends of the past half century.

    But it has come to an end, predicts Grant Williams, publisher of the Things That Make You Go Hmmm… newsletter and co-founder of Real Vision.

    The events of 2020 have dramatically accelerated a reversal from the past decades of deflation into a new future of secular inflation. And that means the rules of investing have just changed, as the playbooks for those two environments are extremely different.

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  • Blog

    Jim Rogers: Great Depression 2.0?

    A legendary investor foresees hard times ahead
    by Adam Taggart

    Friday, October 30, 2020, 9:03 AM

    19

    Jim Rogers is not only one of the most successful investors of our era, he’s also an avid scholar of history.

    He looks into the future and sees a terrible reckoning ahead; one he predicts will be “the worst economic crisis of my lifetime” — and Jim is 78 years old.

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  • Blog

    Ben Hunt: Inflation Ahead!

    Why the investing world is about to change
    by Adam Taggart

    Friday, October 23, 2020, 9:08 AM

    21

    Ben Hunt — highly respected fund manager, author, and former professor/entrepreneur/venture capitalist — says that to be successful in managing your wealth, there’s only one question that matters:

    Are we entering a deflationary future, or an inflationary one?

    The strategies and appropriate investment targets for each are extremely different, so you’d better answer correctly.

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  • Blog

    Market Update: DC/Wall Street Insider Predicts Coming Shock

    The Fed is recklessly driving us towards an unavoidable reckoning
    by Adam Taggart

    Friday, September 18, 2020, 10:08 AM

    7

    When asked what the biggest risks facing the economy are, David Stockman, lifelong Capital Hill and Wall Street insider, says “That’s easy. There are three: The Fed, The Fed and the Fed.”

    After decades of misguided policy and chronically missing its targets, Stockman thinks the Federal Reserve is truly barreling off the rails now, hurtling our market economy towards disaster.

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  • Blog

    Is High Inflation Now A Bigger Danger Than A Deflationary Crash?

    Is High Inflation Now A Bigger Danger Than A Deflationary Crash?
    by Chris Martenson

    Tuesday, August 25, 2020, 5:08 PM

    7

    What’s the more likely event at this point: a deflationary crash or runaway inflation?

    For a long time, Peak Prosperity co-founder Adam Taggart and I have hewed to the “Ka-POOM!” theory, which states that a major deflation will scare the central banks so badly that they overreact and pour too much liquidity into the system, thereby destroying it.

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  • Blog

    The End Of Money

    Prepare for the coming wealth transfer
    by Chris Martenson

    Friday, November 1, 2019, 11:03 PM

    22

    Today we live in a bifurcated economy: it is boom times for some and bust times for others.

    Your personal situation depends largely on how close you fall on the socioeconomic spectrum to the protected elite class, towards which the central banks are directing their money-printing firehoses.

    Why should we care about this bifurcation? History.

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  • Insider

    Off The Cuff: When Does The System Break?

    Where's the line where inflation will become hyperinflation?
    by Adam Taggart

    Wednesday, February 20, 2019, 10:13 AM

    19

    In this week's Off The Cuff podcast, Chris and John Rubino discuss:

    • When Does The System Break?
      • When will (hyper)inflation become the greater risk?
    • When Will The Central Banks Lose Control?
      • Their intervention is becoming increasingly desperate
    • Recession & Debt Exhaustion
      • These are limits that can't be 'printed away' forever
    • The Rise Of Authoritarianism
      • More countries are giving the State more power

    One of the most frequent questions we're asked here at Peak Prosperity is: When does all this blow up? When do the sins of the past — rampant debt/deificit spending, monetary meddling, cronyism, lies & propaganda, resource despoilage — catch up with us and force a day of reckoning?

    Well, in this week's podcast, Chris and John Rubino bravely attempt to answer. Their conclusions aren't pretty; it's better we be forewarned of the risks than slam into them blindly.

    Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio as well as all of PeakProsperity.com's other premium content.

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  • Blog

    A Survival Guide For 2019

    How to safely navigate the 'Year Of Instability'
    by Adam Taggart

    Friday, February 1, 2019, 3:24 PM

    40

    With the bursting of the Everything Bubble, we declared last year as the 'Year Everything Changed'. This will be the 'Year of Instability', possibly preceding an upcoming 'Year Of Woe' in 2020.

    But look, we're not saying the world is the process of ending imminently. It's just that we've entered the part of the timeline when things are going to start to get really rocky.

    And we think it's much more useful to think of 2019 as the 'Year Resilience Matters'. It shifts the focus away from fear and instead towards the many things you can do to protect yourself and those you care about – and even to position yourself to prosper through the coming challenges.

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  • Daily Digest
    Image by tolomea, Flickr Creative Commons

    Daily Digest 1/2 – The Science Of Loneliness, Stop Reading What Facebook Tells You To Read

    by DailyDigest

    Tuesday, January 2, 2018, 5:56 PM

    11
    • The Science Of Loneliness
    • The dark side of your $5 Footlong: Business owners say it could bite them
    • These Will Be the Big Stories of 2018
    • Stop reading what Facebook tells you to read
    • Too much screening has misled us about real cancer risk factors, experts say
    • Why American doctors keep doing expensive procedures that don’t work
    • It's Time For Innovators To Take Responsibility For Their Creations
    • Americans Will Eat a Record Amount of Meat in 2018

    Read More »

  • Insider
    Wollertz/Shutterstock

    Prepare For The Great Global Contraction

    How hard will we hit the ground?
    by charleshughsmith

    Saturday, May 20, 2017, 12:01 AM

    3

    Executive Summary

    • The repercussions of the Fed's Free Money Machine
    • Why debt-funded state control stagnates productivity
    • The importance of the 8-year cycle
    • What should guide investors' focus and decisions

    If you have not yet read Part 1: How Long Can The Great Global Reflation Continue? available free to all readers, please click here to read it first.

    In Part 1, we asked these questions: can we just keep doubling and tripling the economy’s debt load every few years? What if household incomes continue declining? Are these trends sustainable?

    In the near-term, we asked: is this Great Reflation running out of steam, or is it poised for yet another leg higher? Which is more likely?

    Let’s start by looking at the mechanism that funds the government’s deficit spending, i.e. its ability to borrow and spend enormous sums of money year after year.

    The Free Money Machine

    The state can afford to continue or increase fiscal stimulus (deficit spending) because the central bank (the Federal Reserve) has created what amounts to a free money machine. Here’s how the machine works.

    The federal government issues $1 trillion in new bonds to fund another $1 trillion in deficit spending. The central bank (Federal Reserve) creates $1 trillion with a few keystrokes, and buys the $1 trillion in bonds with newly created money.

    The Federal Reserve earns interest on the $1 trillion in bonds it now owns, but it returns this income to the Treasury, minus the Federal Reserve’s relatively modest expenses of operation. Let’s say the bonds carry an interest rate of 2.5%.  The government pays the Federal Reserve $25 billion in annual interest, and the Federal Reserve returns $20 billion annually, so the net cost of borrowing and spending $1 trillion is an insignificant $5 billion.

    If this isn’t entirely free money, it’s extremely close to free money.

    So in ten years, the Federal Reserve owns $10 trillion more in federal bonds (assuming the bonds are long-term and didn’t mature).

    It's no wonder that some economist propose…

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