Commodity Trade Mantra

Posts Tagged ‘CPI’

2% Inflation, Gold and The Fed's Current Mandate

Many modifications of policy mandates occurred between 1913 and 1971, and the Fed continues today in a desperate effort to prevent the total unwinding and collapse of a monetary system built on sand. A storm is brewing and when it hits, it will reveal the fragility of the entire world financial system.

All Economic Data Are Lies

The scariest part of it all is that the data most utilized by the Federal Reserve, in determining how many dollars to print out of thin air, are the employment lies & the “twin towers” of inflation understatement; i.e., the CPI and GDP. Lying about the rate of inflation is an activity which comes more naturally to central bankers than breathing.

The Ongoing Rot in the Economy

However hard the Central Planners try, they will soon realize that no amount of money printing can cleanse the rot of the US economy. Here we investigate the U.S. consumer & show that for a large portion of the population, things are not anywhere close to being better, in fact they are worse than before the recession.

Which way is Inflation Blowing? Watch Commodities

Rapid growth of the money supply usually fuels higher rates of inflation. It’s the narrative about low inflation & weak Gold prices that enables the endless printing of money by central banks. Bubbles in the European and US bond & stock markets can be sustained in the stratosphere, only as long as inflation is “SAID” to be running near-zero.

Inflation, Investment and Savings - Where do we stand now ?

There’s a clear relationship between periods of rising prices (inflation) for essential items & negative real rates, & this undermines the dollar value. Investors then seek alternatives such as gold, oil & agricultural land. Actual income of the low income group varies more when measured against the price of necessities rather than the broad CPI.

Why the U.S. Recovery is Such a Disappointment

We have had a disappointingly slow recovery, and our consistent expectations for a pickup in growth have been dashed over a number of years. This has been the most agonizing post-recession recovery since The Great Depression, in spite of record stimulus efforts including zero bound interest rates.

Is It Time to Admit that Gold Peaked in 2011?

Some argue that the 2011 peak of $1,921 is the equivalent of the 1970s mania peak of $850 in Jan of 1980. Today’s volatile world is exactly the kind of circumstance gold is best for. Regardless of the measure, gold has not matched its 1980 peak. And the reasons to own it have not faded. Indeed, they have grown.

Moody's: Russia Downgrade Review On Event Risk, Investor Sentiment & Economy

Hot on the heels of what S&P said was not a “politically motivated” shift to rating watch, Moody’s has decided to put Russia on rating downgrade watch. Decision was triggered by 3 key factors: Weakening of Russia’s economic strength, Potential shifts in investor sentiment & susceptibility to event risk.

Inflation Does Not Produce Economic Growth

How is it possible that higher price inflation will make the economy stronger? If price inflation slightly above 2% is good for the economy, why not aim at a much higher rate & make the economy more healthier? Monetary pumping to lift rate of price inflation will only deepen economic impoverishment.

This Gold Model Calculates Prices Between 1971 And 2017

Did the gold bull market end in August 2011 – Or – Was last year’s decline merely a correction in the bull run? The answer, can be found in my gold pricing model that has accurately replicated Average gold prices after the noise of politics, news, HFT & day-to-day “management” have been purged.

The New Fed Chair - Janet Yellen's Impossible Task

Janet Yellen is supposed to accomplish what simply cannot be done, namely ‘unmake’ the mistakes she and her predecessor have jointly committed (let us not forget, she was vice chair and never once dissented with the decision to implement an extremely loose policy).

Is Inflation Understated? - The Way The Politicians Wanted It

By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily – While the process impoverishes many, it actually enriches some.

If You Believe In Math, Buy Gold To Protect Yourself

A lot of the fear caused by tapering has been subdued. QE will go on much longer than previously thought, equities can go higher, but eventually, there will be another 2008-style crash and there will be a crisis in bonds and currency. We will see the true power of gold then.

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