Inflation is Severely Understated

If you repeat something completely inane enough times, do people, even economic writers, believe it? Please consider the Bloomberg article Price Slowdown for Cars, Baby Clothes Raises Fed Concerns. Five years into the U.S. economic expansion, inflation shows little sign of picking up as prices rise more slowly for goods and services from automobiles to […]

What the Price of Gold is Telling Us

Unlimited money-printing from the Federal Reserve. Unlimited euro-printing from the European Central Bank. Japan’s central bank is printing more yen. The Bank of England is in the fray as well, announcing even more pound-printing. And yet, as you can see from this chart, the price of gold has not even bettered this year’s March high […]

When Leverage Fails


While it is playing out in slow motion, the demise of Ponzi finance continues.  I never imagined that the extend and pretend, delay and “prey”, smoke and mirrors efforts of central banks around the world would have worked into mid-2012. I have learned a lesson. I do not know when the true financial collapse will […]

Is the bond yield curve forecasting a return to deflation?

The 30 year / 2 year Treasury yield curve has been on a steady march higher since 2007.  It makes sense since that was the year things started falling apart in the inflated, debt saturated developed global economies – led by the nation that showed everyone how it’s done when it comes to economic management […]

What are the Symptoms of Deflation–Conclusion?

If you went into a doctor and had 14 of 15 symptoms of a disease and the 15th was close, you can be sure the doctor would know what was happening. In this case, the diagnosis is crystal clear: The US is back in deflation. Who Anticipated Deflation? To my knowledge, no school of economic […]