Inflationomics

Lessons from Planting Trees

Friday, the 29th of July 2016

Some of you may have heard the story my dad used to tell about how, back in the early 1970s, he planted (actually, he had me plant) black walnut trees on some land we own. The big-picture plan was to plant them so that future generations would be able to harvest them and reap the benefits of their far-sighted ancestors. It was a great long-term plan, but there were a few details missing…. Now, I’m going to tell you the rest of the story. 

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The Brexit Aftermath

Wednesday, the 29th of June 2016

Someone recently asked me whether I thought there would be a war as a result of the British electing to exit the European Union (EU). After all, she said, President Lincoln went to war when the Confederate States of America seceded from the United States of America.

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What Can Gold Do for Our Money?

Monday, the 6th of June 2016

One of the chief virtues of a gold standard is that it serves as a restraint on the growth of money and credit. It makes runaway government deficit spending and major monetary catastrophes such as hyperinflation practically impossible.

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The Future Under Negative Interest Rates

Monday, the 30th of May 2016

We've all heard about negative interest rates by now. How the bank depositor has to pay the bank for the privilege of keeping his/her money in the bank…the opposite of the way things have worked in the past.

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Why Regulators Can't Regulate

Wednesday, the 27th of April 2016

Everyone knows that regulators regulate markets. Markets, of course, are the result of individuals acting freely to determine the price of everything from food to insurance. It's simply the most efficient way to allocate scarce resources in a world of unlimited wants. And when regulators regulate, they alter the way people behave.

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Working Outside the "System"

Monday, the 28th of March 2016

As interest rates go negative, savers have less incentive to save and everyone has less incentive to stay within the unrewarding "system." The "system," of course...

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Negative Interest Rates

Thursday, the 25th of February 2016

Let's say there's a banking crisis and banks stop lending money. The economy contracts. Voters become unhappy. And nowadays it's the central bank's job to stimulate the economy. So, what does it do?

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Why the Federal Reserve Always "Happens" to Be Wrong

Friday, the 12th of February 2016

The Federal Reserve Board finds itself back in a quandary of its own making.

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The 21st Century Gold Standard is Already Here

Thursday, the 14th of January 2016

Some advocates of the gold standard look to the past and idolize the way it was during the 19th and early 20th centuries. They point to the Coinage Act of 1792, where a dollar was defined as 371¼ grains of pure silver, and gold was fixed at a ratio of 15 to 1 relative to silver. “If only we could fix the dollar to a set quantity of silver again,” they lament.

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2015 Review

Thursday, the 31st of December 2015

The war in Syria continues, sending out a flood of refugees to Europe and beyond. Russia has joined the Syrian fray, and Europeans are becoming frayed around the edges as more refugees move in. Meanwhile, rich Arab countries...

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From the Echoes of 1776: A Monetary Revolution is Coming

Thursday, the 17th of December 2015

Is America on the cusp of a revolution that will usher in a new monetary order? The lessons of history tell us...

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Another Consequence of Declining Oil Prices?

Wednesday, the 2nd of December 2015

You may have heard that Saudi Arabia has just brought a halt to its experiment of growing wheat in the desert. In other words, they are about to stop turning their oil revenues into...

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What Will the Next Debt Default Crisis Bring?

Thursday, the 29th of October 2015

Back in 2008, when Lehman Brothers failed, Merrill Lynch was taken over by Bank of America, AIG was nationalized, and Reserve Primary Fund's (a large money fund) price dropped below one dollar, the Fed came to everyone's rescue with cash. Since then...

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Why the Fed Didn't Raise Interest Rates

Tuesday, the 29th of September 2015

So the Fed didn't raise short-term interest rates, again. Is the economy still too weak? Does it need more stimulus?

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Get Ready for a Huge Wave of Bankruptcies

Wednesday, the 16th of September 2015

Global companies are having trouble paying their bills...

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The Most Important Geopolitical Trend of the Next Decade

Tuesday, the 8th of September 2015

The bloodbath was merciless. In 1842, 16,500 British soldiers and civilians withdrew from Kabul, Afghanistan. Only one would survive. It was the most humiliating military disaster...

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Money—How to Get It and Keep It

Wednesday, the 2nd of September 2015

Even if you are already wealthy, some thought on this topic is worthwhile. What would you do if some act of God or of government...took you back to square one?

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Currency Wars: Who Wins? Who Loses?

Monday, the 31st of August 2015

After 71 years of the world’s being under the U.S. dollar’s dominance and 44 years operating as an un-backed fiat currency, the wheels are finally starting to wobble. How much longer till they fall off?

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The Next Financial Disaster Starts Here

Tuesday, the 11th of August 2015

Individual investors take note...Some of the world's best money managers are betting on the biggest financial disaster since 2008. You won't hear about this from the mainstream media.

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When Paper Money is Free

Wednesday, the 29th of July 2015

If I could borrow money at 0% interest or even 1% interest with inflation at 1%+, why wouldn’t I? All I have to do is...

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Capital Controls and a Bank Holiday in Greece: Here's How You Can Profit

Friday, the 3rd of July 2015

For the unprepared, it happens like a mugging...When you hear a central banker or politician deny that something is going to happen to bank depositors, you can almost be certain that it will happen. And probably...

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Following the Greek Example

Friday, the 3rd of July 2015

Ok, so Greece has been living beyond its means for some time. It borrowed...

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