Think-About-It

Another Stimulus Bill?

"As we've said before, inflation is a much better choice than risking depression."

So many intelligent people have been brain washed (by studying bogus keynsian theories) into thinking that inflation is good that it has become "common knowledge." If you fall into the camp of "inflation good, deflation bad" please do yourself a huge favor and read up on Austrian Economics.

Inflation is only good for a select few groups that have significant assets relative to their earnings and who invest heavily in inflation themes plus those who receive the new money before it filters through the economic system (eg., bankers). Everyone else suffers from inflation. Everyone!!

Inflation: As Inevitable as Death and Taxes

If you desire a rising standard of living for as many people as possible then deflation through the free market process (not money/credit manipulation/contraction) is what you want. If you desire a rising standard of living for a few select groups then inflation via money/credit expansion is what you should wish for.

Is Gold a Hedge on Uncertain Dollar Outlook?

Hot Richard,
You have a way with words! LOL

Starve the Economic Beast, Part 3

Mr. Quinn,

Good article but weak "solution." Moving money from 'bad big banks' to 'good small banks' will not solve our systemic financial problems.

I propose that a grass roots effort to end central banking in America would strike at the source of the problem. Hopefully Ron Paul's latest book "End the Fed" will have an impact beyond the libertarian niche. If we eliminate the Federal Reserve System and fractional banking, thereby returning to a pre-1913 banking system, we would experience sounder economic growth (based on fundamentals not credit stimulation) and mild business cycles similar to our 19th century results.

For anyone interested in trying to figure out what the next few years might look like for the U.S. I recommend reading "America's Great Depression" by Murray Rothbard. You will not be dissapointed in the content, analysis or applicability to our current situation.

Why Printing Our Way to Prosperity Will Not Work

One of the best summaries I've read in a while. Too many people and investors live in the present and forward think only a few months/quarter ahead. Inflation is happening quickly and steadily but not being translated into higher end-use prices, yet due to the global recession. But it must come and when it does it will probably happen very quickly.

I don't understand why so many people are complacent about our governments actions to debase our currency. In any case I agree than the Fed & treasury will not have the will or political capital to deflate the money supply when economic activity picks up or prices start rising. The government, as the worlds largest debtor, desperately needs inflation to forestall defaulting on its debt obligations or raising tax rates to unacceptable levels.

Protect your purchasing power before worrying about other investment themes!

Service-Based Economy Is Progress? Show Me the Money

!RulesNoRules
"The free market is always right. Capital and investment flow to where the market is the most free. Oddly, that is China and India... "

I urge readers to reread this guys comment because his conclusions are spot on. The article starts off fine but the author's conclusions are off base. Today's glaring failures of the U.S. are the tipping point from getting off the "free-markets" path decades ago. We have been gradually adopting socialist principles as we keep moving closer to the French economic model at an accelerating rate. At this critical time we should go back to adopting a Hong Kong economic model but that is as likely as snow in South Africa.

And you can be damn sure that future history books will teach us the wrong lessons (that this is a failure due to greed, capitalism run amok and lack of regulatory oversight).

Ludwig Von Mises... we need you more than ever!

The Downfall of Keynesian Economics and the U.S. (Part 3 of 3)

<The last remaining bubbles of American finance - Treasuries and the US Dollar - will burst and like all burst bubbles,it will be a mess.>

You hit the nail on the head. Short the USD by buying Gold (and at a later date other commodities) and short long-term treasuries by buying TBT.

The Great Consumer Crash of 2009

d.a.n.,

Do you by any chance have a job or some other interests that you could spend some time on? Your endless comments and marketing is a bit much. Look out your window, perhaps you could do your neighbor a favor and mow their lawn or add some value by picking up some trash or helping an old lady cross the street.

The Ongoing Challenge of Inflation Momentum

You conclude like so many financial advisors are trained to do by saying: "A fully diversified global portfolio across all the major asset classes is still the only game in town."

How many great investors do that? None. They identify a few key areas/ideas to focus on and invest in them (long or short) until the idea has played out or better alternatives surface. Let us emulate.

Bernanke Blames Saving Glut for Housing Bubble

Michael, your comments are right on the mark. In my opinion the Federal Reserve Board has never worked (except by accident) because the premise is that a few bankers/economist can consistently predict the future and take priemtive measures to 'massage' the economy's ups and downs.

It can't be done and by trying the Fed actually increases volitility as everyone tries to predict and then reacts to their comments and rate changes. I better stop now before I lose it but one final question for you...

Is there a major industrial country that does not use a similar system, i.e., central control of their interest rates?