Category Archives: Inflation/Deflation

Deflation: The Fed Cannot Stop It

This article shows how all sorts of assets, commodities, currencies have been deflating in terms of gold.  The author suggests we’re in a global deflationary spiral, despite central banks’ (in the EU, US and Japan) efforts to prevent this.  The author’s analysis reinforces the golden rule of economics – there’s no such thing as a free lunch…. even monetary policy cannot circumvent this rule.  A great read.

-Valentine

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Helicopter Ben on Credit Crunch

This is pretty funny.

-Billy

John Hathaway – Gold & US Today vs 1980 Mania

When it comes to bull and bear market cycles, the characteristics of incipient and terminal stages are identifiable to contrarian scrutiny based on sentiment, sponsorship, participation and valuation.  The middle innings, however, tend to be muddled affairs.  Sentiment vacillates but never seems decisive.  Sponsorship is broader but not unanimous.  Ownership, the acid test in our opinion, is more widespread but not universal.  That seems to be the case for gold right now.

Enjoy,

Dick Pepperfield

Opinion on Gold & Silver

Here’s another opinion piece on the recent volatility in the gold and silver markets and what we could expect in these markets in the near future.

-Valentine

Financial Times interview with Russell Napier —

Long View: Historian sees S&P fall to 400

Napier talks about how most portfolios are constructed within the current low to negative interest rate environment and how he envisions an adjustment upwards in real interest rates which he calls the “Great Reset”.

Napier also says that the lows in 2009 were not the real lows.  Markets didn’t capitulate and valuations never reached the lows in previous market crashes.

Enjoy,

DP

Return of the Bond Vigilante

A great interview with Bill Gross.  The topic is the destiny of US treasury rates, credit standing, and interesting trades he’s made for the largest bond fund in the world.  Enjoy.

-Valentine

Forbes Predicts US Gold Standard Within 5 Years

This prediction by Steve Forbes has kicked up discussion in the media.

-Valentine