Commodity Trade Mantra

Posts Tagged ‘Asset Price Inflation’

Keeping the Low Interest Rates Bubble-Boom Going

A normalization of interest rates, after years of excessively low interest rates, is not possible without a likely crash in production and employment. If the Fed goes ahead with its plan to raise interest rates, times will get tough in the world’s economic and financial system. Why then do the decision makers at the Fed want to increase rates?

Asset Price Inflation Enters Its Dangerous Late Phase

A progression of the asset price inflation disease into its final stage (general speculative bust and recession) would mean the end of monetary inflation and also inflation in goods and services markets. What could bring about this transition? Most plausibly it will be a splintering of rose-colored spectacles worn by investors. What could cause the splinter? Read here.

Four Reasons the Bernanke-Yellen Asset-Price Inflation May Be Nearing Its End

The remarkable run up of asset prices in the last few years is beginning to run out of steam. Once interest rates begin to rise — and rise they must, whether as a result of Fed policy or not — the end of the asset price inflation will be at hand. The result will be another financial crisis and accompanying recession.

QE Ending Because It Was Successful? Then Here Are A Few Questions

Certainly, QE-induced perpetually rising asset prices & sinking volatility, likely boosted consumer confidence through the interpretation of lofty prices as ‘all must be well’. However, those aspects dangerously conspire to produce a false perception about the true state of economic fundamentals. Some simple questions need answers.

How to Start Reforming the Federal Reserve Right Now

Inputs into the newly introduced so-called “Taylor Rule” to reform the Federal Reserve, involve key magnitudes such as “neutral rate of interest”, “the natural rate of unemployment” & “targeted rate of inflation.” Republicans by now should have realized, monetary reform should first involve jettisoning neo-Keynesian economics.

The Bear's Lair: Where's the link to Inflation broken?

Monetary economists around 2009-10 were sure that the Fed’s unprecedented creation of “narrow money” in the form of bank reserves would show up fairly quickly in a burst of inflation. The Fed has increased monetary base by $3 trillion, or 319%, since Sep 2008. Yet inflation remains very subdued – Why?

Precious Metals Futures - Beyond the Madness

Price discovery on the largest precious metals futures trading system goes on protected by a fraudulent financial system and a legal system desperate to protect its importance. The only positive is that manipulation cannot go on forever and there is still time to act accordingly.

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