The best inflation watchers in the world are the professional bond buyers. These investors are required by their profession to put immense quantities of money into contracts which will repay their investment at some point in the future.
In recent years, monetary and fiscal stimulus across the world have led to the assumption that serious inflation, if not hyperinflation, is on its way. I believe chronic deflation is more likely.
Lower U.S. Crop Reserves Raising Food Costs in Election Year By Jeff Wilson, from Bloomberg U.S. corn stockpiles are poised to be the smallest in 16 years by August and soybean reserves will be lower than the government expected, potentially accelerating food-price inflation in an election year. The U.S. Department of Agriculture may say tomorrow that corn inventories [...]
Original article from Bloomberg A new potential worry for investors has very quietly emerged in recent days: surging bond yields. Almost out of nowhere, the yield on the benchmark 10-year Treasury bond has quickly shot to five-month highs as investors price in further evidence the U.S. economy is truly recovering and inflationary concerns begin to [...]
All traders watch the price of oil. Oil is energy and energy is the fundamental force of every economy. If oil goes up, there is less cash for purchasing food, household articles, equipment and travel. UPDATE MARCH 1, 2012 OIL $110.00 “Everyone is looking at $110 oil,” said Stephen Schork, president of the Schork Group [...]
ZIMBABWE CURRENCY – WORTHLESS!! The definition of “Hyperinflation” is given below by “THE CONCISE ENCYCLOPEDIA OF ECONOMICS” “Hyperinflations are caused by extremely rapid growth in the supply of “paper” money. They occur when the monetary and fiscal authorities of a nation regularly issue large quantities of money to pay for a large stream of government expenditures. [...]
Euro-Area Banks Tap ECB for Record Amount By Gabi Thesing, from Bloomberg The number of financial institutions flocking to the European Central Bank’s three-year loans soared to 800 and borrowing rose to a record in an operation that may boost the euro-area economy. The Frankfurt-based ECB said it will lend banks 529.5 billion euros [...]
TAJ MAHAL AND INDIAN RUPEE Three Currencies Ready for a HUGE Revaluation By Karim Rahemtulla, Senior Correspondent From WALL STREET DAILY See Dr. Pinna’s comments below… Both the U.S. dollar and euro are doomed. Why? Because in addition to being in slow-growth economies, saddled with debilitating debts, they’re [...]
