On one hand, the deflationists are claiming that given the extremely high debt levels in the West, further inflation is impossible.
September 30th, 2009 | Puru Saxena | 4 comments | ContinuedAll Posts Tagged With: "zimbabwe"
You Can Have a Deadly Depression and Dizzying Levels of Inflation Simultaneously
“Inflation can and did occur during a depression, and that inflation was strictly a monetary phenomenon…”
September 24th, 2009 | Bill Bonner | 5 comments | Continued
Investors in China Have Learned Nothing From the Crash of ‘07-’08
With no barriers to entry, profit margins are always squeezed by competition. And growth is limited too – other builders are always starting up. If the investor paid 40 times earnings, he can only get 2.5% on his money…
July 31st, 2009 | Bill Bonner | 0 comments | Continued
Investors Tend to Race Ahead and Ruin the Whole Thing
If people could read next year’s fashion magazines, they’d buy tomorrow’s fashions today. Then, some wiseacre would buy the day after tomorrow’s fashions…just to be ahead of everyone else. And then, nobody would want to be stuck with tomorrow’s hairdo – it would already be out-of-style.
May 19th, 2009 | Bill Bonner | 0 comments | Continued
Monetary Inflation the Old-fashioned Way!
All of our economic problems are caused by the Federal Reserve creating the excess of money and credit that produced the bubbles in stocks, bonds, houses and size of government, but doesn’t have to be electronic money made from electronic credit.
May 5th, 2009 | Mogambo Guru | 1 comment | Continued
Until This Debt is Reduced, Americans Will Be Reluctant to Borrow or Spend
Debt and excess capacity can be liquidated quickly – as they were in the panics of the 19th century – through bankruptcies and defaults. But, today, liquidation would have to take place over the dead body of U.S. Fed chief, Ben Bernanke…
February 9th, 2009 | Bill Bonner | 3 comments | Continued
Dr Gono or: How I Learned to Stop Worrying and Love the Inflation
The world’s financial authorities have a duty to maintain the integrity of the financial system…which means, maintaining the value of the currency. Those that lived through the ’70s have a horror of inflation. They feel they must fight against it…protect against it…and keep an eye out for it. Yet, in front of them is the worst financial crisis since the Great Depression…
January 30th, 2009 | Bill Bonner | 2 comments | Continued
All Roads Lead to Zimbabwe
How exactly more credit and a cash binge will support asset values escapes us. But it’s possible that Australia is now in lock-step with every other central bank and government in the world, and that all monetary roads lead to Zimbabwe, where a brave but brittle paper currency has gone to its god like a soldier, to paraphrase Rudyard Kipling. Rest in peace, Zimbabwe dollar. Robert Mugabe and Gideon Gono have blown out your brains and gutted the Zimbabwe economy…
January 30th, 2009 | Dan Denning | 2 comments | Continued
Ask Not What Your Banks Can Do For You…
Everyone believes the banks need more money. Obama is likely to give them more. How? Using the “quantitative easing” technique…otherwise known as printing up money. The banks, of course, will not lend…and people will not borrow. They’re not fools. So, then, the Obama administration will begin pumping harder…like they do in Zimbabwe…
January 21st, 2009 | Bill Bonner | 1 comment | Continued