Commodity Trade Mantra

Posts Tagged ‘Real Wages’

Nine Years on, People Forget How Nasty an Interest Rate Increase Can Be

If the Fed raises rates, I would expect for the US economy to come close to a recession, more deflation & probably some disruption in equity markets. If they don’t raise rates as the decision is data-dependent & it’s coming in weak – you might actually see stocks higher at the end of the year than they are now based on more free money.

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.

Central Banks Have Failed Because They Can't Push Wages Higher

Lowering interest rates to zero and issuing unlimited free money for financiers to generate asset bubbles has had a negative effect on wages and household income. This is not accidental or bad luck – Central bank money-printing cannot possibly have any positive impact on wages. “Bad” inflation is prices rising while wages stagnate.

follow us

markets snapshot


Market Quotes are powered by Investing.com India

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook