Commodity Trade Mantra

Posts Tagged ‘Money Printing’

How Inflation Could Be Caused in 15 Minutes

So-called “money printing” is seen as a certain path to inflation. The Fed has printed almost $4 trillion since 2008. Yet inflation (at least as measured by official statistics) is barely noticeable. With so much money around, where’s the inflation? Increased money supply alone does not cause inflation. The money must be borrowed and spent.

Three Catalysts for the Price of Gold

The 400% growth in base money engineered by the Federal Reserve since 2008 is not the only driver of higher gold prices. There are at least three other catalysts – extreme deflation, financial panic, and negative real interest rates. A brief look at all three scenarios will give us a more robust understanding of gold’s potential price performance.

End Of The Era Of Central Banks

Central banks’ maniacal money printing schemes were the only way to keep history’s largest Ponzi scheme growing; & now that confidence in them is failing & the need for gargantuan QE programs just to prevent instantaneous collapse has arrived, it won’t be long before Central banks will have as much relevance as buggy whips.

Gold Price & The US Dollar Trend Forecast For 2015

My forecast conclusion is for the Gold price to trend lower into August 2015, targeting a low of $1050 before Gold finally makes a low for the year that propels the Gold price to above $1300, probably spiking to approx $1350 during Nov. Clear investing strategy for 2015 will be for one of accumulating into Gold during first half weakness.

Can Money Printing Cause Deflation?

Over the last 45 years I have observed that, in countries with high monetary inflation, real wages and incomes have tended to decline. Incidentally, this has also been the case since the turn of the millennium in the US, a period in which there has been a colossal expansion of money and credit.

As QE3 Ends, Fed Reserves Have Biggest Drop Since Start Of QE

A glance at the Fed H.4.1 statement reveals: in the past 4 weeks, the level of total reserves with Fed banks (i.e., excess reserves created by QE), have seen their biggest plunge since the launch of QE in March of 2009. As of Nov 5, the total amount of outstanding reserves tumbled to $2.561 trillion, down a whopping $188 billion.

Top 7 Reasons I’m Buying Silver Now

The next few years could be a very exciting time for silver investors. The bottom line is that the current silver price should be seen as a long-term buying opportunity. This may or may not be our last chance to buy at these levels for this cycle, but if you like bargains, silver’s neon “Sale!” sign is flashing like a disco ball.

The Safest Investments in a Dangerous World Market

You need both the wood & the spark to have the fire of inflation. US Fed & other central banks have printed trillions of dollars of money in the past four years. So far, inflation has been relatively tame. The printed money is only the wood; a spark is still required. Events in the Middle East, Ukraine and China today may provide the spark.

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.

Will there be an Epic (final) US Dollar Rally?

The overall down-trend of the US dollar is clear. But one must remember that counter-trends are typically far more powerful than many expect – and many counter-trends last far longer than expected as well. Let’s discuss the factors that could conceivably bring about the mother of all counter-rallies in the USD.

Money Creation: The Road to Hyperinflation

With banks willing to lend money and customers increasingly willing to borrow, bank credit can be expected to gradually increase in a self sustaining, inflationary spiral. With asset prices being gradually inflated, more investors are inclined to borrow at low interest rates to share the bonanza – An outcome, the central banks look for.

Central Bankers: Inflation is God’s Work

Inflation is always somebody else’s fault – A finger pointing by central bankers and politicians from decades ago. Remember – Inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy.

New Trend Guarantees Higher Gold Prices

Consequences of debt, money printing & currency debasement, etc are valid, core reasons to hold gold in a portfolio at this point in time. But a new trend is under way, and someday soon it will be just as much a driving force for gold prices as anything else: a good old-fashioned supply crunch.

Surprise, Surprise … The Dreaded Taper Is Postponed Again

With Tuesday’s release of Sept payrolls report, various banks have now decided to alter the taper time line they previously envisaged as well – We believe that the pace of ‘QE’ will actually be increased rather then lowered at some point in the future.

Silver Prices - 4 Cycles in 12 Years

Since the bottom in Nov 2001 at a weekly close of $4.03, silver prices have had four launch lows, breakouts, highs and crash lows and though the patterns are not identical, there are obvious similarities – We now await the 5th cycle.

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