Inflation

Disagreeing With Deflationists

The ability to change your position at the blink of an eye is very important in investing. While you all know I am a gold bug, I would turn bearish on gold if we found a mounumental gold mine that quintupled the supply of gold. Yes gold will still be an anti-government trade. Yes gold will still be a currency. However, the massive supply spike in gold will probably counteract…

Matt Taibbi on Government Corruption

As a forecaster, you must be willing to alter your predictions according to changing circumstances. I haven’t really altered my forecasts because our politicians have, unfortunately, behaved just as I thought they would. In other words, they have been corrupt, inept, self-serving, and positively braindead. The most repugnant aspect of this entire financial crisis is the lack of prosecution after financial institutions fleeced average Americans. To top it off, these…

Rising Assets in a Downturn

As someone who shuns economic orthodoxy, I’m sure I say a lot of confusing things. When I view the economy, I try to be as objective and independent-thinking as possible. I don’t label myself and then pull out a checklist of everything I’m supposed to be bullish or bearish on. I mentioned yesterday that I believe not many people are going to invest profitably in the turbulent years ahead; and…

Greek Debt Downgraded Again

One of the buzz words that made me chuckle last year was austerity. Austerity this, austerity that, as if it would actually solve anything. I’ve mentioned before that this crisis isn’t going to be solved through austerity measures and higher taxes. This is becoming clearer by the day as Standard & Poors downgraded Greece’s debt once again. In keeping with the pattern that has persisted throughout this crisis, analysts and…

When the Gold Bull Market Ends

The recent spike rally in silver and subsequent collapse have got me thinking about the future of precious metals. Events can change so quickly based on just a couple of variables. The best course of action, as always, is to be flexible and adjust accordingly. I believe gold will go from an underowned to overowned condition fairly quickly. The two main things I will focus on are price and time. I have price targets, but…