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Brien Lundin: The Hazardous Transition from Deflation to Inflation
Source: The Energy Report
As difficult as it may be for precious metals investors to sit on their hands, that may be the best “action” for surviving this hazardous transition from deflationary to inflationary times. In this exclusive interview, Gold Newsletter Editor Brien Lundin explains why it is absolutely inevitable that inflation will trigger a rise in gold and hints that a December “surprise” could end the waiting game. He also believes uranium’s long-term story remains bullish, but it’s not going to develop as quickly as everyone had hoped during the ‘urani-mania’ a couple of years ago. While his advice is…
14Nov2008 | The Energy Report | Comments Off | ContinuedBank of England’s Deflation Defense: More Cut Rates
Bank of England governor Mervyn King said today (Wednesday) that dangerous deflation is opening a door for further interest cut rates.
“In the space of a few months, we have gone from the highest rate of manufacturing input price inflation in nearly 30 years to the lowest monthly rate on record. And measures of short-run inflation expectations have fallen back sharply,” King read from a statement before a press conference.
When asked about cutting rates, King said the Bank of England is “prepared to cut bank rates to whatever level is necessary” to keep inflation at its 2% target, Bloomberg…
13Nov2008 | Money Morning | Comments Off | ContinuedWELCOME TO A TRILLION-DOLLAR DEFICIT, MR. PRESIDENT
If you are a typical citizen, you like deflation. You want your wages and investment income to stretch as far as possible. Falling prices, or rising purchasing power, are a sign of economic progress – the progress resulting from productivity gains and competition.
If you are a modern central banker, anxious to implement your ivory-tower theories, deflation is enemy No. 1. (For the sake of clarity, by “inflation,” I mean rising prices, and by “deflation,” I mean falling prices).
Central bankers must be the only people who celebrate a 3 or 4% annual reduction in purchasing power.
Why is this? Because “moderate” inflation…
29Aug2008 | Daily Reckoning | Comments Off | ContinuedStayin’ Alive in the New ’70s
People who believe that history repeats itself are asking themselves: Is this a rerun of the ’30s…or a replay of the ’70s. Is it a deflationary recession we’re rehearsing? Or an inflationary recession? How is this story going to turn out?
We look around. We don’t see any breadlines…and people aren’t dressed nearly as well as they were in the ’30s. But now people get their free food through plastic “Independence” cards…proving that they are 100% dependent on the taxpayer for their daily bread. And as for dress…what do we know? If people like wearing flip-flops, pedal pushers, and shirts with…
27Jun2008 | Daily Reckoning | Comments Off | Continued
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