Purchasing Power

China Unveils New Capital Controls

China has unveiled plans to impose "capital controls" on Chinese merger activity overseas, intensifying efforts to slow a surge in capital fleeing offshore amid tepid growth and an uncertain economic outlook.

"A Million Dollars Ain't Worth What It Used To Be..."

In today’s world, reaching the magical “millionaire” mark of a $1 million net worth is less meaningful than it used to be. In fact, roughly 9% of households in the United States have “millionaires” living in them – this is a record amount, caused partially through the devaluation of currency over time.

Obstacles To Trump's "Growth" Plans

Mr. Trump rather unfortunately may find that his chief task will not be the management of this Great Re-orientation, but more prosaically, fending off the headwinds which he will face as he hauls on the tiller of the economy. In short, there is a real prospect that his ambitious economic “remake” may well be prematurely punctured by financial crisis. These headwinds will not be of his making, and for the main part, represent the accumulation of an earlier monetary doctrine which will fetter the President-elect into a small corner from which any chosen exit will carry adverse implications.

The Serfs Have Rebelled - Europe Next?

Hayek’s The Road to Serfdom described how personal freedoms are progressively eroded by the state in the name of the common good. In the main, the serfs are patient and tolerant of their masters, but in a democracy, the establishment behind the state risks being challenged. And that has happened twice this year, first with Brexit and now with Trump in America... but remember the serfs never win, as Hayek recognised.

China Warns It Is Ready To Slow Yuan Plunge On Capital Outflow Fears

While Chinese policymakers have taken the yuan's recent slide in stride, they are getting ready to slow its descent - i.e., sell reserves -  for fear of fanning capital flight if the currency falls too quickly through the psychologically important 7-per-dollar level, Reuters reports citing policy advisers.

Yuan Smashes Through 6.90... What Next?

While the Renminbi basket (Chinese currency basket relative to biggest world trade partners' currencies) has been 'stable' for almost 5 months, the catchdown in the Yuan's purchasing power against the US Dollar is accelerating rapidly. Busting through 6.90/$ in early Asian trading, the last time offshore Yuan cratered this quickly, stocks plunged in January. The question is - how much further can the Yuan fall before the Trump bump gets damaged?

Steve H. Hanke's picture

If the IMF doesn’t disclose its method for calculating inflation in Venezuela and doesn’t have any access to the country, why do the FT’s reporters continue to report a flawed IMF forecast? Because the FT reporters bow to authority unquestioningly. In this case, the IMF.

Wilders' Plan For Holland: Time For Liberation

"We must also liberate ourselves from the Europhiles in Brussels who wipe the floor with our identity, our sovereignty and our prosperity. We are no longer in control of our own borders, our own money, our own democracy. If we decide in a referendum that we do not want something, like the association agreement with Ukraine, then they force it down our throats anyways. Because the will of the people is not relevant to the elite. They are laughing at us."

BullionStar's picture

Trump and Gold

Donald Trump's election as next US president has given the gold price a short-term 'uncertainty' trading boost. However, Trump's keen interest in the gold standard is a trend worth watching over the next 4 years.

What The World Looks Like "Ex-Africa"

If you wonder why interest rates have collapsed, its to incent fewer to spend more.  If you wonder why central bankers have seemingly gone mad, its simply a doomed rear guard action in the face of decelerating to outright shrinking numbers of people with the capability to consume.  If you wonder why your Social Security or your pension or IRA won't be there when you need them... you may want to scan the charts below...  It really is that simple.

When It Comes To Household Income, Sweden & Germany Rank With Kentucky

It has nearly reached the point of dogma with many leftists that European countries enjoy higher standards of living thanks to more government regulation and more social benefits. What the data really suggests, however, is that even after social benefits are incorporated into the income data, the median American still has a higher income than most European countries.