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Why Inflation Never Came - News That Matters
Why Inflation Never Came
A generation of economists and students of macroeconomics were taught that the Quantity Theory of Money described the relationship between money and prices in the economy. The primary equation for the Quantity Theory of money is:Where: is the total amount of money in circulation on average in an economy during the period, say a year.
http://www.financialjuice.com/News/108633/Why-Inflation-Never-Came.aspx
Dollar firms before Bernanke, inflation dip hits sterling
The dollar firmed, gold fell and shares slipped off five-year highs on Tuesday as investors postioned for an update on the future of the U.S. Federal Reserve's stimulus programme.
Is Gold Oversold?
Pessimism on gold is so extreme that sometimes even the bears worry it might be overdone. Today the price jumped a little more than 1 percent after news hit the wires that was perceived to be bullish: Moody’s Investors Service reported that U.S. policymakers must do something about the government debt to avoid a rating downgrade this year.
Contrarians see today’s bearishness as a bullish sign, reasoning that once almost everyone who used to be a bull has become a bear, gold has nowhere left to go but up. That’s why they’re called contrarians.
http://www.financialjuice.com/News/108695/Is-Gold-Oversold.aspx
Where has the smart money been buying the US Dollar?
A slow Monday in the currency market, with gentle yet consistent USD weakness the main theme. Despite the decline, it managed to maintain the very same levels of supply and demand from last week against main peers. These levels are likely to come into play as the trading week develops and risk events get released. Simplified Supply Demand Table The table below includes updated supply/demand levels as well as commentaries on the current outlook of the pair.
http://www.financialjuice.com/News/108694/Where-has-the-smart-money-been-buying-the-US-Dollar.aspx
UK government believes it has the right economic approach
A spokesman for PM David Cameron was asked if the government would heed advice from the IMF over it’s economy. The IMF are due to release their annual UK economic report on Wednesday, which will which will no doubt be following the same line that IMF chief economist, Oliver Blanchard came out with in April where he criticised George Osborne’s strict austerity measures.
Sterling and Yen Aren't Waiting for Tomorrow
The US dollar remains largely in a consolidative phase, awaiting Federal Reserve Chairman Bernanke's testimony before the Joint Economic Committee of Congress tomorrow. There has been much talk about tapering asset purchases and Bernanke's views are critical. However, comments by Japan's Amari, seemingly trying to soften yesterday's comments, after reportedly being criticized by cabinet colleagues helped lift the dollar back toward JPY103. Separately, soft UK inflation figures sent sterling back to the base it build last Friday and yesterday near $1.5165
http://www.financialjuice.com/News/108667/Sterling-and-Yen-Arent-Waiting-for-Tomorrow.aspx
US: Amateur investors tap 401(k)s to buy homes
In order to get in on hot housing markets, amateur investors are buying up homes and taking risky measures -- like tapping their retirement accounts -- to fund the deals. "We're seeing many people cash out 401(k)s or IRAs because they want to take advantage of the market," said Sean Galaris of financial services firm LM Funding, based in Tampa. "This new scenario involves people losing significant personal funds since they are financing real estate through retirement accounts, savings and life insurance."
http://www.financialjuice.com/News/108701/US-Amateur-investors-tap-401ks-to-buy-homes.aspx
Microsoft's Innovation That Apple Missed
Windows. We've all used it. And although some of us may even hate it, it's still the most prevalent operating system on earth. Windows XP still has roughly 5 times the market share as Apple's OS X
http://www.financialjuice.com/News/108685/Microsofts-Innovation-That-Apple-Missed.aspx
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The price of everything doubled, anyways, though. So what does it really matter whether that was inflation or some other complex formulation?
Inflation never came because core CPI does not include food and energy.
Australia has lowered interest rates to debase their currency (in order for its corrupt govt to help the US prop up the US dollar), and it's starting to work: oil prices, and other commodities, are surging in terms of the Australian dollar.
The yen was really starting to break down bc they were debasing their currency. They just announced they will stop (for now anyway). The Japanese jigger their cpi like the US does. They throw out the stuff that goes up and then claim they have deflation so they can claim they need inflation.
That's how other countries help the US export inflation. For their economies to prosper, they need to let their currencies rise.