Purchasing Power

Tyler Durden's picture

Deflation vs Inflation





On one hand, global growth is slowing down. And on the other, the cost of living is rising. That’s a bad combination, but we’ll make it. While you’re waiting for QE4 to see how it all goes down, remember to hold on to your  assets… if you have any. 

 
Tyler Durden's picture

A "Dangerous Spiral" Has Taken Hold In Emerging Markets





There are a number of cause-and-effect mechanisms that are creating a "dangerous spiral" in various emerging markets. As Natixis explains, this five-step vicious circle is currently affecting Russia, Brazil, Argentina and South Africa; and some of the components are now manifesting in Turkey and India.

 
Tyler Durden's picture

A Historic Anniversary For McDonalds: 12 Months Without An Increase In US Sales





October was a historic month for McDonalds. While the investing public was already well aware that things are bad and getting worse when it comes to demand for the iconic hamburger following MCD's 30% plunge in Q3 profit, moments ago the troubled fast-food chain reported that in the first month of the fourth quarter it celebrated a tragic anniversary: one year of US comp store sales without a single increase, following a 1% drop in US October sales! This is the first time in history when MCD has anniversaried negative same store sales in the US.

 
Tyler Durden's picture

Who Said It? "Deficit Spending Is A Scheme To Confiscate Wealth. Gold Stands In The Way Of This Insidious Process"





"This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard." - Who Said It?

 
Tyler Durden's picture

RX For Modern Monetary Madness: Mises Explained Sound Money 80 Years Ago





This misdirection of capital, labor and raw materials away from that allocation and use consistent with people’s actual decisions to consume and to save, means that every monetary-induced inflationary boom carries within it the seeds of an eventual and inescapable economic downturn.

 
Tyler Durden's picture

Central Planners Are In A State Of Panic





The central planners are in a state of fear and panic.  They are trying everything and anything to create market validation for their policies, watching with trepidation as their favored economic metrics fail to respond to all of their frenzied efforts. They are so far over the tips of their skis right now that there's nothing they won't do.  By the time a central bank is behaving as recklessly as Japan, it's time to edge towards the exit, because the chance of a flash fire in the building has grown uncomfortably high. That is, instead of providing comfort, these most recent moves should invoke greater worry for those of us alert enough to see them for what they are: acts of panic.

 
Tyler Durden's picture

Ron Paul Says: Watch The Petrodollar





"The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better." - Ron Paul

 
SurlyTrader's picture

Gold, Yen, Central Banks and the Endgame





Central Banks shorting Gold and Silver to preserve their status as Masters of the Universe.

 
Sprout Money's picture

WGC: "Improving GDP Benefits Gold Demand"





There is a very strong correlation between the GDP and the demand for gold, even in mature markets!

 
Tyler Durden's picture

Bubble Exit Rule: "You Only Get Out If You Panic Before Everyone Else Does"





The problem with what we call the Exit Rule for Bubbles - "you only get out if you panic before everyone else does" – is that you also have to decide whether to look like an idiot before the crash or an idiot after it.

 
Tyler Durden's picture

USDJPY Tops 114 (+6 Handles) Sending Japanese Stocks Up 2000 Points Since FOMC





The trend is your friend... until it becomes a Venezuelan hyperinflation melt-up...

 
Tyler Durden's picture

Bill Gross Warns "Global Economy & Financial Markets Are Insecurely Grounded"





"Perhaps sooner rather than later, investors must recognize that modern day inflation, while a necessary condition for survival, is not a sufficient condition for increasing wealth at a rate necessary to satisfy future liabilities associated with education, health care, and a satisfactory retirement. The real economy needs money printing, yes, but money spending more so, and that must come from the fiscal side – from the dreaded government side – where deficits are anathema and balanced budgets are increasingly in vogue. Until then, deflation remains a growing possibility – not the kind that creates prosperity but the kind that’s the trouble for prosperity."

 
Marc To Market's picture

Divergence Aids Dollar, but No Currency War





When Calpers buys an international asset for its investors, is it intervening in the forex market on behalf of the US?

 
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?

 
Syndicate content
Do NOT follow this link or you will be banned from the site!