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Articles in the Inflation Category

Economy, Gold, Headline, Inflation, Politics »

Race To The Bottom

Essentially countries want lower currencies priced against other currencies in order to stimulate exports. Of course if your exports are cheaper for other countries, then stuff is also more expensive for your own people, but that’s irrelevant, right? Well, what happens when EVERYONE is devaluing against eachother trying to all stimulate exports? Well, you have all currencies losing value.

Economy, Headline, Inflation »

Government Considering Changing How CPI Is Calculated

What do you do when inflation gets in the way of policies?  Well you change how we define inflation of course!  As long as the CPI number is in good standing, nobody can argue that inflation is here!  Forget $10/gallon gasoline, we have a flat CPI! (sarcasm)
If it weren’t so serious, it’d be funny, but this is exactly what is being considered by our great leaders in DC.
An article from Zero Hedge discusses the considerations over changing the CPI formula.  Here is an excerpt:
“Lawmakers are considering changing how the Consumer …

Gold, Inflation, Quick Hits »

If a third round of quantitative easing is on the table (and many think it is) there is one thing you can bank on… continued interest rates at or near zero.  Zero interest rate policy (ZIRP) will continue for years in my opinion.  Real rates will be negative based on inflation, and that means gold continues to go higher.

Economy, Inflation, Investing »

Stagflation Victim: Gap, Inc. (GPS)

Prime stagflation victim is Gap, Inc. (GPS) which operates retail clothing stores like Gap and Old Navy.  The lower end clothing lines have been victim of higher input costs such as cotton (and of course fuel for transport) which has squeezed margins.  Meanwhile, consumers are tight because of no wage growth and higher food & energy costs.  Hello stagflation.
This is no surprise and is a story that we should continue to see play out.  Who are the companies doing well?  The multinationals that have pricing power and a global reach.  …

Gold, Headline, Inflation, Trading »

I Expect Silver To Continue Move Lower In Near Term

Silver plunged something like 30% last week, then bounced for a few days – a text book dead cat bounce – and today dropped big again.  I expect this to continue at least to the $30 level and I still think silver could correct as low as $20.  I put a short term short trade on silver by using the ZSL and will take gains in that if it it plays out as I expect, then buy back into silver in the area around $20 (if it indeed goes as …

Economy, Headline, Inflation, Investing, Politics »

What To Watch In The Days Ahead

We’re rapidly approaching some important days and most likely important events.  Most of these events surround the Federal Reserve and the conclusion of the quantitative easing process we’re currently engaged in, usually referred to as QE2.
Interestingly, the rhetoric is what you need to watch, because if you pay attention closely to what people are saying on CNBC and other outlets, the tone has already shifted slightly.  This week we have seen weak housing numbers and weak job numbers (ADP report).  Coupled with this, we’ve seen a massive drop in commodities …

Gold, Inflation, Quick Hits »

The rise in silver in recent months is huge to say the least.  The last six months have been very rewarding for silver investors as the price of the ounce of silver has more than doubled.  If you look at a chart, it looks somewhat parabolic which always makes me nervous.  I don’t exactly think that silver is necessarily over, but the short term rise makes me somewhat nervous.  If you have some paper silver gains such as SLV, I’d consider selling it and putting that cash into something like …