Commodity Trade Mantra

Posts Tagged ‘Government Spending’

Gold Once Again Proves To Be The Best Defence Strategy

We need to redirect the mindset of our culture which has been brainwashed into thinking there is no such thing as “perfect money”. History, society and markets alike have tested gold and pushed it to its limits, and the verdict is clear and resounding: Gold has passed the test of time, as the only reliable option to protect, to preserve and to secure wealth.

Helicopter Money - The Recipe For Inflation Gathers Momentum

Where will inflation come from? With helicopter money, Congress spends the money. It covers its deficit with more borrowing & the Fed prints the money to cover the borrowing. It’s essentially monetizing the debt. The difference is that in the case of QE, there’s no extra spending. In the case of helicopter money, there is because Congress spends all the money. – Your recipe for inflation.

Government Borrowing Is Not Like Private Debt

Neither borrowing nor saving is inherently good or bad. At least in the private sector. Whether one chooses to save or borrow to finance a project depends upon a subjective assessment of the relative trade-offs. It’s another matter entirely, though, when we’re talking about the government sector, as the two are not comparable.

The Reality Behind the Numbers in China’s Boom-Bust Economy

The US Federal Reserve orchestrated an artificial boom from 2001 to 2007 through artificially low interest rates, paid for it with millions of destroyed jobs, wasted labor & wasted resources, but has resumed doing so once again. The Chinese Central Bank learned nothing from the Fed’s catastrophic experiment for its economy. They will reap the same rewards.

Government Shutdown & Debt Limit Questions Answered

A federal shutdown due to a funding lapse looks no less likely than it did two weeks ago. The Senate is expected to begin voting later this week on a funding extension, but the House looks unlikely to act until shortly before the September 30 deadline. Here are some attempts to answer the main questions surrounding the shutdown, debt limit & ramifications.

Not Just Debt: Government Spending & Easy Money Fuel Greek Crisis

It is not debt as such that is behind the current crisis in Greece. Large government outlays and strong increases in the money supply are being ignored in most analyses of the Greek crisis. Loose fiscal and monetary policies have been instrumental in the generation of various non-productive activities that have been squandering wealth.

How GDP Metrics Distort Our View of the Economy

GDP purports to measure economic activity while largely divorcing itself from quality, profitability, depth, breadth, improvement, advancement & rationalization of goods & services provided. Why does GDP poorly reflect economic size & vitality? Its largely due to 3 fallacious concepts embedded within GDP measurements.

Governments Need Inflation, Economies Don't

The only thing that inflation can do is to help governments spend & remain viable. It’s a drug they can’t do without. Economies do just fine with low inflation. The idea that governments can hold inflation to just 2% per annum is preposterous. Once it breaches that level, governments will be powerless to contain it. Endgame will be hyperinflation.

Is The Deficit Reduction Just Another Mirage?

As the impact of the Affordable Care Act (ACA) weighs on consumptive spending, current entitlements continue to expand, and economic growth weighs on future tax revenues the deficit will likely worsen in the future.

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