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Dollar in the Dumps
It’s now official: the recession is over. We know this because Fed chairman Ben Bernanke said so this week, though the full quote is not exactly brimming with optimism. “Even though from a technical perspective the recession is very likely over at this point, it is still going to feel like a very weak economy for some time as many people still find their job security and their employment status is not what they wish it was,” Bernanke said. We must say this off-the-cuff remark is impressive for containing at least six disclaimers: 1) “From a technical perspective…” 2) “very…
17Sep2009 | Invest With An Edge | 0 comments | ContinuedWhy Fed Policies and Treasury Department Bailouts Will Lead to Inflation Rather Than Deflation
The U.S. Producer Price Index (PPI) and Consumer Price Index (CPI) both fell in October. Those declines – combined with sharp downward spirals in worldwide stock and commodity prices – have caused many analysts, and even central bankers, to worry that we are on the brink of deflation.
Such concerns may be warranted in the short-term. But in the long run, deflation won’t be the challenge we face.
Thanks to an overly aggressive central bank, and more than $1.5 trillion in U.S. Treasury Department bailout programs – as well as other factors related to the ongoing global financial crisis – inflation…
3Dec2008 | Money Morning | 0 comments | ContinuedSoaring PPI Coupled with Plunging Housing Starts Spotlights Struggling U.S. Economy
U.S. companies were hit with the largest annual jump in wholesale prices in 27 years during July, while housing starts dropped to their lowest level in 17 years, the latest indicators that ruinous stagflation is tightening its grip on the U.S. economy for the first time in decades.
“Inflation is way too hot and with housing way too cold, we have the opposite of a Goldilocks economy,” Joel Naroff, president and chief economist of Naroff Economic Advisors, said in a note to clients after two separate U.S. government reports were released.
The Labor Department announced that the producer price index…
20Aug2008 | Money Morning | Comments Off | Continued
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