Shrink the State. End the Fed. Balance the budget. Make a profit. Leave an inheritance.
Gary North
The financial media report that the consumer price index jumped in May. But the CPI is not the right index to watch if you want to know what the underlying price trend is. Far more reliable is the Median CPI. It’s the “steady Eddie” of price indexes. There was no change in the rate of [...]
Continue reading →TIPS bonds are Treasury bonds that pay investors extra if the CPI rises. They are an inflation hedge. Investors are selling them. So, their interest rate is rising. This means that investors think that price inflation is a long shot. The decline in the CPI by .4% in April added fuel to the fire of [...]
Continue reading →Bonds pay little interest, thanks to (1) the Federal Reserve’s QE3 program (2) the banker’s unwillingness to lend and the borrowers’ unwillingness to borrow. Future price inflation will raise rates. Rising rates will lower the market price of bonds. Buffett sees what is coming. He prefers stocks. One plain vanilla promoter of bonds is upset. [...]
Continue reading →Bill Gross is the CEO of Pimco, the largest bond fund on earth. In his latest newsletter, he lays it on the line. The government is working against all investors. In the language of finance, the government will give investors a haircut. During and after World War II most countries with high debt overloads resorted [...]
Continue reading →This press release confirms the falling price of gold, silver, and copper: inflation is not a threat at this time. This was released on April 17. According to the Federal Reserve Bank of Cleveland, the median Consumer Price Index rose 0.1% (1.1% annualized rate) in March. . . . Earlier today, the BLS reported that [...]
Continue reading →I have been writing about this for almost 40 years. America’s currency is used mostly outside the USA. Currency withdrawn from the U.S. banking system that is not re-deposited shrinks the M1 money supply. It reverses the fractional reserve process. It shrinks the money supply. At the 1974 Austrian scholars’ conference held at South Royalton, [...]
Continue reading →The plight of savers in America is hopeless. We know that price inflation is over 2% per year. What do investors get in a money market fund? A pathetic 0.26%. Then they pay income taxes on this 0.26%. What if they do not want to tie up their money for a year? Then they get [...]
Continue reading →Nathan Lewis is a contributor to Forbes. A contributor is a non-salaried writer. Contributors fill up the Forbes site to generate ad revenues. The policy favors quantity over quality. Lewis attacks Austrian School economists as kooks. Why? Because they do not trust the federal government to set up a gold standard that does not rely [...]
Continue reading →Gary North’s Reality Check The conservative movement has always been filled with monetary cranks. This has been true for well over a century. These cranks have never read a book on economics. They have never taken a class in economics. They have zero practical experience in finance. They come before the conservative public and present [...]
Continue reading →The president of the “conservative” Federal Reserve Bank of St. Louis said on Friday the 22nd that FOMC policy will remain loose for a long time. There is no problem, he says. This policy of buying $1 trillion a year in Treasury bonds and Fannie/Freddie bonds is more powerful than expected. This will create U.S. [...]
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