This site has featured evidence of economic weakness in the U.S. for some time, basically since last spring. Now that the Fed agrees so heartily as to add QE on top of Operation Twist, I start looking for buying opportunities in economically-sensitive assets; this being a total reversal of the stance I adopted in May [...]
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Tall Paul Volcker and Jeff Harding agree (per The Telegraph): QE3 will not fix America’s problems Paul Volcker, the former Federal Reserve chairman credited with taming the inflationary threat of the 1970s, has warned that further quantitative easing will fail to repair economies in Europe and the US. Mr Volcker, addressing a conference at Gleneagles in Scotland, [...] Two decades ago, Dana Carvey got laughs by imitating President George H. W. Bush and saying: “Wouldn’t be prudent”. Those were “prudent” times- the Perot balanced budget movement, the recurrent tax rises to deal with budget deficits (not that I favor tax increases) and the like- but the point was made to the public. If [...] In the 1960s, Valéry Giscard d’Estaing, then the French Minister of Finance, coined the term “exorbitant privilege” to refer to the special benefits enjoyed by the USA by virtue of the fact that it is the issuer of the world’s reserve currency. Most Americans remain largely unaware of what these short-term benefits are and the [...] Readers may recall that last year I was invited to the annual Milken Institute Global Conference as a financial reporter. I was not invited back this year because they were displeased with my commentary (they let me know it). My articles for the most part had to do with technical economic issues that were discussed [...] The official “inflation” numbers came in last week and they show declining prices, something that the Fed calls “deflation”. The Fed and most policy makers will panic if deflation continues and prices steadily drop. It’s a tricky thing to evaluate because much of the decline in prices has to do with [...] The Mises Institute has a collection of lectures by Ludwig von Mises, the greatest Austrian School scholar. There are other audio lectures from FEE as well. Apparently this lecture on inflation was recently found in the Mises Institute archives. This was recorded in 1965 when he would have been 84. It is a rare treat [...] This article originally appeared in Bloomberg and is authored by Amity Shlaes, one of my favorite writers (see below). A little is all right. That’s the message Federal Reserve Chairman Ben S. Bernanke has been giving out recently when asked about the evidence of inflation in the U.S. recovery. Sometimes Bernanke doesn’t even go that far. [...] A “little” inflation will destroy capital, rob you of your savings, disrupt all of your long-term financial planning, create market instability, and leave you unprepared for retirement. You can protect yourself and you must. Price Inflation The Bureau of Labor Statistics released their official Consumer Price Index for February on Friday (up 0.4% MoM; up 2.9% [...] |
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