inflation

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Bad Money

Our debt-based fiat money system poses an existential threat
Friday, September 14, 2018, 6:51 PM

We’re all going to have to be a lot more resilient in the future.  The long emergency, as Jim Kunstler put it, is now upon us.  It comes from every direction, and the trick is going to be remaining alert, oriented and positive.

If ever there was a wake-up call from the natural world it was this year’s weather events combined with the storms from last year.  » Read more

Podcast

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Lance Roberts: The Markets Are Now Waving A Huge Red Flag

Another debt-fueled crisis & and hangover approaches
Thursday, August 16, 2018, 9:15 PM

Lance Roberts sees trouble ahead.

As chief investment strategist of Clarity Financial and chief editor of Real Investment Advice, Lance issues commentary weekly on the financial markets. He sees a major market correction/crash dead ahead, likely in early 2019 as the US economy offically slides back into recession -- though he's open to it happening sooner than that.

Based on the huge debt/decifit excess that have built up in the economy, paired with the tremendous overvaluations in asset prices seen in today's markets, Lance expects economic growth to remain anemic (at best) for the coming decade: » Read more

Insider

Off The Cuff: Yes, The Central Banks Really Are Starting To Tighten

Expect EVERYTHING you know about the markets to change
Tuesday, July 10, 2018, 10:40 AM

In this week's Off The Cuff podcast, Chris and Wolf Richter discuss:

  • Tesla As A Symbol Of Silicon Valley
    • Way more hype than substance right now
  • Are Central Banks Really Starting To Tighten?
    • It's looking like indeed so
  • How The Rising Dollar Is Killing Emerging Markets
    • It's just math. Really cruel math.
  • Popping Of The Global Housing Bubble?
    • Australia may be leading the way down

The Fed has reduced its balance sheet so far this year to the tune of $100 billion, and is hoping to be reducing at the rate of $50 billion per month by October. The ECB has announced it will stop making purchases by the end of the year. And, surpringly, even the profligate Bank of Japan is showing signs of reducing its balance sheet.

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.
Podcast

Ronald Stoeferle: Gold Is Dirt Cheap Right Now

And a new bull market for the metal is beginning
Tuesday, June 12, 2018, 11:38 AM

Fresh from releasing his exhaustive 230-page annual report titled In Gold We Trust, Ronald Stoerferle joins us to summarize his forecast for the yellow metal.

Stoerferle, an author of several books on Austrian economics and head of strategy and portofolio management at Incrementum AG, concludes that gold is extremely cheap right now in dollar terms. And he sees a new bull market beginning for the precious metal -- one likely to quickly build momentum as the next (and long overdue) financial market correction arrives. » Read more

Insider

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Off The Cuff: Is Inflation Now In The Rear-View Mirror?

Mike Shedlock warns of deflation ahead
Friday, March 9, 2018, 3:11 AM

In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:

  • Are We On Our Way To Tipping Into Deflation?
    • We will be if we have another credit crisis
  • We're At Record Levels Of Indebtedness
    • So deflation would be painfully brutal
  • Trumps Trade Wars Will Hasten A Deflationary Bust
    • Economic growth will be even harder to achieve
  • It's Time To Own Real Things
    • Commodities are looking better and better

Recorded last week, Mike Shedlock explains why he sees an inevitable -- and painful -- deflationary rout ahead for world financial markets...

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
Insider

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Winning Against The Big Club

Protect & grow the purchasing power of your wealth
Friday, January 12, 2018, 8:43 PM

Executive Summary

  • Taking Advantage of Subsidies
  • The Importance of Adding New Income Streams
  • Income-Producing Assets
  • Hedges, Cost-Controls & Other Strategies

If you have not yet read Part 1: Drowning In The Money River, available free to all readers, please click here to read it first.

In Part 1, we compared official rates of inflation with hard data from the real world, and found that it’s not just the cost of burritos that has soared over 100% while inflation has supposedly been trundling along at 1% or 2% per year. The real killer is the soaring cost of big-ticket essentials such as rent, higher education and healthcare.

So what can we do about it? There are only a few strategies that can make a real difference: either qualify for subsidies (i.e. lower household income), own assets and income streams that keep up with real-world inflation, or radically reduce the cost structure of big-ticket household expenses.

Assets & Income Streams

One strategy to avoid being crushed by real-world inflation is to earn enough extra income to keep up with higher costs. This is problematic in an economy in which wages/salaries are declining as a share of the gross domestic product (GDP).

This is a long-term secular trend that is affecting not just middle-income workers but the highly educated technocrat/managerial class. This reality suggests that trying to earn more income via wages/salaries is akin to pushing sand uphill: it is possible, but it’s running up against powerful secular trends.

The alternative strategy is to seek assets and income streams that might increase purchasing more than wages/salaries.

The data speak volumes about the difference between wealthy households and middle-class households: the middle-class households’ primary asset is the family home, while the wealthy households’ primary asset is business equity: ownership of an enterprise or shares in enterprises.

Developing a profitable enterprise is easier said than done (it helps to inherit a family business), and there is no guarantee a business that’s successful today will still be successful next year.

Nonetheless, it’s striking that the middle class is heavily indebted, house-rich and business-equity poor, while the top 1% has little debt and is business equity-rich and relatively house-poor.

This is not to say it’s a poor investment to own a home, but it does suggest that you can beat the erosion of inflation by... » Read more

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Drowning In The Money River

Why the 99% of us are falling farther behind
Friday, January 12, 2018, 8:43 PM

If you suspect society is unfair, that there's a different set of rules the rich live by, you're right.

I've had ample chance to witness first-hand evidence of this in my time working on Wall Street and in Silicon Valley. Simply put: our highly financialized economy is gamed to enrich those who run it, at the expense of everybody else. » Read more

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2017 Year In Review

Markets fiddle while Rome burns
Friday, December 22, 2017, 4:15 PM

Every year, friend-of-the-site David Collum writes a detailed "Year in Review" synopsis full of keen perspective and plenty of wit. This year's is no exception. As with past years, he has graciously selected PeakProsperity.com as the site where it will be published in full. It's quite longer than our usual posts, but worth the time to read in full. A downloadable pdf of the full article is available here, for those who prefer to do their power-reading offline. -- cheers, Adam

Introduction

“He is funnier than you are.”

~David Einhorn, Greenlight Capital, on Dave Barry’s Year in Review

Podcast

Doug Noland: There Will Be No Way Out When This Market Bubble Bursts

Financial assets will become toxic to hold
Monday, December 11, 2017, 3:07 PM

This week Doug Noland joins the podcast to discuss what he refers to as the "granddaddy of all bubbles".

He certainly shares our views that prices in nearly every financial asset class have become remarkably distorted due to central bank intervention, first with Greenspan's actions to backstop the markets in the late-1980's, and more recently (and more egregiously) with the combined central banking cartel's massive and sustained liquidity injections in the years following the Great Financial Crisis.

All of which has blown the biggest inter-connected set of asset price bubbles the world has ever seen. Noland foresees tremendous losses as inevitable, as the central banks lose control of the monstrosity they have created: » Read more

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The Great Retirement Con

Frankly put: retirement is now a myth for the majority
Friday, November 17, 2017, 8:25 PM

40 years ago, a grand experiment was embarked upon. One that promised US workers: using new 'defined contribution' retirement savings vehicles such as IRAs and 401k,, they'd be better off when they reached retirement age.

Which raises a simple but very important question: How have things worked out? » Read more