Purchasing Power

Tyler Durden's picture

Only A Few More QEs To Go Until Argentina





Because nothing says economic strength like nominal equity market gains... as Kyle Bass warned in the past - beware the 'nominal' stock market cheerleaders.

 
Tyler Durden's picture

How Long Can The Top 10% Households Prop Up The "Recovery"?





The question of "recovery" really boils down to this: how much longer can the increasing debt of the bottom 90% and the wealth of the top 10% prop up the expansion?

 
Tyler Durden's picture

Why We're Poorer: Inflation And Deflation Are Now Globalized





We're being hit with a double-whammy: Wages are under deflationary pressure, and almost everything else is exposed to inflationary pressure.  No wonder we feel poorer: most of are poorer.

 
Sprout Money's picture

In Memoriam: Abenomics





Shinzo Abe has lost his magical touch as Japan's economy is nose-diving again...

 
Tyler Durden's picture

Things That Make You Go Hmmm... Like The Swiss Gold Status Quo Showdown





The Swiss establishment has been reliant upon the public’s ignorance, but now they are up against a formidable opponent in Egon von Greyerz. Not only that, but they can clearly see that, as elsewhere around the world, the public is fast becoming disenchanted with the status quo; and that is potentially very dangerous for these people. What is important to understand here is that if the initiative passes it will be part of the Swiss constitution IMMEDIATELY - as some are suggesting. This means that the government and parliament cannot touch it. Only another referendum can change it. This is proper democracy for you. The closer we get to the vote on November 30, the bigger this story is going to become, and the bigger it becomes, the higher the chance that the yes vote wins. Should that happen, it will undoubtedly set off alarm bells throughout the gold market, as yet more physical gold will need to be repatriated and another sizeable, price-insensitive buyer will enter the marketplace.

 
Tyler Durden's picture

Kuroda Comedy Hour (Or Has The World Gone Mad... Again?)





The head of Japan's Central Bank kept a straight face while unleashing a torrent of comedic genius this evening with regard the Japanese economy and its monetary and fiscal policy success... Enjoy...

 
Tyler Durden's picture

50% Of American Workers Make Less Than $28,031 A Year





The Social Security Administration has just released wage statistics for 2013, and the numbers are startling. Last year, 50 percent of all American workers made less than $28,031, and 39 percent of all American workers made less than $20,000. We are witnessing the slow-motion destruction of the middle class, and very few of our leaders seem to care.

 
Tyler Durden's picture

Why Gold Is Undervalued





Gold has been in a bear market for three years. Technical analysts are asking themselves whether they should call an end to this slump on the basis of the "triple-bottom" recently made at $1180/oz, or if they should be wary of a coming downside break beneath that level. The purpose of this article is to look at the drivers of the gold price and explain why today's market value is badly reflective of gold's true worth.

 
Tyler Durden's picture

19 Surprising Facts About The Messed Up State Of The US Economy





Barack Obama and the Federal Reserve are lying to you. The "economic recovery" that we all keep hearing about is mostly just a mirage...  For those out there that still believe that we are doing "just fine", here are 19 more facts about the messed up state of the U.S. economy.

 
Tyler Durden's picture

Will Our Private Savings Be Sacrificed To Pay Down The Public Debt?





Many nations have gone through periods in the past where they've had very high levels of government debt. There are four traditional ways of dealing with that... decades of austerity, defaulting on government debts, inflating away the value of debt by rapidly destroying the value of currency, and government's favorite - "financial repression" - a process that is complex enough that the average voter never understands how it works, thus allowing governments to use this potent but subtle method of taking vast sums of private wealth, year after year, decade after decade, with almost no political consequences.

 
Pivotfarm's picture

Stop Smokin The Import Crack…





yes, I know it feels soooo good. Hint: China is the dealer

 
Tyler Durden's picture

Now Comes The "Specter Of Deflation": The Money Printers' Latest Scam





The Fed’s public relations firm of Hilsenrath & Blackstone was out this morning with the official line on the market’s tremors of recent days. It seems that $10 trillion in freshly minted digital money at the world’s major central banks over the last eight years—-that is, a tripling of their balance sheets to $16 trillion—- is not enough. Not only is 2% inflation still MIA, but it now threatening to enter the dark side: Behind the spate of market turmoil lurks a worry that top policy makers thought they had beaten back a few years ago: the specter of deflation.  Never mind that there is nothing close to a sustained run of negative consumer price indices anywhere in the world.

 
Tyler Durden's picture

The Fed's 2% Inflation Target: The Ultimate Keynesian Con Job





The old adage that if something is repeated often enough it is soon assumed to be true couldn’t be more apt with respect to the Fed’s 2% inflation target.  That Keynesian central bankers peddle this nostrum with a straight face is amazing in itself, but it is at least understandable because it gives them a reason to keep the printing presses humming. That journalists repeat it with no questions asked is even more remarkable. It proves that the impending replacement of financial journalists with robo-writers may not be so bad after all. It won’t make any real difference.

 
Tyler Durden's picture

Monetary Policy And Impact On Assets





The last note briefly addressed the benefits associated with the reverse repurchase facility (RRF). Indeed liabilities have increasingly moved from bank balance sheets to the Fed, freeing lending capacity. One must recall reserves are not fungible outside of the banking system (but can act as collateral for margin). With flow decreasing, the opportunity for small relative volume bids spread over a large quantity of transactions (most instances per unit time) decreased with market prices in many asset markets. Is more downside coming?

 
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