Gradually, people are becoming aware that we have an inflation problem, which seems to stretch around the world. Perhaps it is time to think about how to resolve it. Certainly a few coy remarks by some Federal Reserve representative aren’t going to be effective.
July 3rd, 2008 | Nathan Lewis | 5 comments | ContinuedAll Posts Tagged With: "Gold"
Gold and Oil are Acting as Though They Expect Higher Rates of Inflation
Based on the last few days’ trading results, Team Bernanke might as well have kept their mouths shut. Gold and oil are acting as though they expect higher rates of inflation…
July 3rd, 2008 | Bill Bonner | 2 comments | Continued
Vietnam Stock Exchange Plunges, Investors Trading in What Little Dongs They Have
Vietnam had recently become the world’s largest importer of gold bullion. Investors and householders bought the yellow metal for the same reason people always have - as a way to protect themselves from paper. The paper at issue is called the “dong,” the official currency of the Socialist Republic of Vietnam. With the Vietnam stock exchange in shambles, the dong has lost value.
June 30th, 2008 | Bill Bonner | 4 comments | Continued
Gold Calls Bernanke’s Bluff
Gold and silver are calling Ben Bernanke’s bluff this week. Bernanke huffed and he puffed and he bluffed and he bluffed all month long about inflation. But the market realises that with America’s housing market mired in the muck, the Fed won’t be raising rates to defend the greenback this year.
June 20th, 2008 | Dan Denning | 9 comments | Continued
Record Misery Index Sends People Scrambling for Gold
Money.CNN.com recently reintroduced the concept of the ‘Misery Index’, which is a metric produced by combining the rate of inflation plus the rate of unemployment, which “was last heard of in the 1980’s” when both of the rates were soaring and people were miserable. Using “official” numbers of 3.9 % inflation with 5% unemployment produces a current Misery Index of only 8.9. Anybody even partially believing the government’s “official” rate of inflation or “official” rate of unemployment has got to be a raving lunatic.
June 17th, 2008 | Mogambo Guru | 4 comments | Continued
Fed’s Inflation Would Go into New Bubbles – In Commodities, Oil, and Gold
When the tech stock bubble popped, for example, the next big thing was a bubble in housing and housing-related debt. When the housing and subprime bubbles popped we guessed that the authorities would pump hard to try to reflate them…
June 2nd, 2008 | Bill Bonner | 1 comment | Continued
We are Confident the Bull Market in Gold is Not Over
Gold rose $3 yesterday…climbing back towards $900. Many gold investors are worried that the end of the Fed’s rate cuts also means the end of gold’s bull market - at least for the near term.
May 8th, 2008 | Bill Bonner | 1 comment | Continued
A Gold Standard, Without Gold
If you understand supply and demand, you can peg a currency to gold even if there are no gold reserves at all. My own idiosyncratic system is the gold standard that involves no gold at all. There are no gold coins, and no government gold reserves. Gold bullion is freely traded on the open market, just as it is today. In my system, the currency manager (governments today) would adjust the supply of currency on a daily basis to maintain its value at the gold peg.
May 7th, 2008 | Nathan Lewis | 5 comments | Continued
When Elected Officials Run Out of Money – Trouble Follows
Yesterday was a big day in Italy - 63 years ago. That was the day that Mussolini was shot, along with his mistress. They were hung upside down in Milan. What went wrong with Benito? “What always seemed to go wrong,” said our guide on Sunday, “was that they ran out of money.”
April 30th, 2008 | Bill Bonner | 0 comments | Continued
In Terms of Gold, Wages Have Gone Nowhere for the Last 37 Years
We file this report, coincidentally, from Manchester… where, according to legend, the industrial revolution began. Modern tools, steady money, and fossil fuel were put together, creating so much gas, it lifted mankind out of the mud of the Middle Ages and carried him aloft. Thrifty Scottish economists - notably Adam Smith and Adam Ferguson - saw what was happening and took note of the moral lesson…
April 21st, 2008 | Bill Bonner | 1 comment | Continued