Inflation

Learning How to Invest

I want to take a step back from talking about current events because the short-term trends likely won’t affect the long-term trends in a major way. Debt isn’t disappearing and our politicians haven’t suddenly grown brains. I don’t want to get bogged down in useless day-to-day analysis along the lines of  “unemployment claims went down by 0.1% so the American economy is back and stocks will automatically rise in the…

Willfully Blind to the Debt Crisis

Every single day that precious metals rise and protests spontaneously erupt around the world, I get more convinced of the crazy events that are coming to our shores. This is a crisis we are not prepared for. Instead of recognizing the future that higher gold prices are implying, we are focused on maintaining the status quo. Even Obama’s wage freezes on the Federal level are not enough- the Federal government is still set to add about 15,000 employees…

Deflation in America?

The inflation vs deflation debate that was all the rage just last year has quickly dissipated. Perhaps this is because inflation is clearly creeping up on us whether it be in the form of higher gasoline prices or higher food prices. Only the staunchest deflationists still cling to the belief that deflation is a real threat. I just don’t get it. How can general prices fall dramatically if the government can…

Perceiving the Major Shifts

The world is changing abruptly before our eyes, yet very few “professionals” see what’s coming. In my opinion, this is because most financial types are equipped to understand a world that fits a very narrow framework. The world they can analyze and understand conforms to a certain paradigm; they aren’t trained to see the true paradigm shifts. As long as the world resembles what they learned in Finance 101,  they …

Gold Bubble?

Gold is an asset that people believe is difficult to value because frankly, people don’t put in the effort. Analysts will always talk about how they value companies based on either cash flow or dividends as if it were some kind of hard science. They won’t tell you that their assumptions go out the door as soon as the business cycle turns, which is regularly. In times of panic, their…