Do you really know What a Dollar is? Or how the FED controls interest rates? What is quantitative easing? Or (QE2)? Or monetary stimulus? For answers, let's turn to someone who has spent a considerable amount of time studying the Fed and its functions: EWI president Robert Prechter. Today we begin a 3-part series that we believe will help you understand the Fed as well as he does. (Excerpted from Prechter's Conquer the Crash and the free Club EWI report, "Understanding the Federal Reserve System.") Here is Part I. … [Read more...]
How The FED Prints Money- Part 4
This is part 4 in the video series on the effects of Quantitative Easing by Chris Ciovacco the Chief Investment Officer for Ciovacco Capital Management. To see the other parts How the FED Prints Money, How the FED Prints Money – Part 2, How The FED Prints Money- Part 3 … [Read more...]
The Case For Hyper-Deflation
by Carl BlackIn all of history, there has never been an episode of hyperinflation that involved a currency that exists primarily as digits stored electronically in accounting programs. Money is defined and decreed by government as being Federal Reserve Notes and Coins issued by the U.S. Mint, backed by the full faith and credit of the United States. The issue of what constitutes money within the United States is established by law and a matter of publicly accessible record and held as common knowledge. Credit is defined as the provision of resources (such as granting a loan) by one party to another party where that second party does not reimburse the first party immediately, thereby … [Read more...]
The Hills Are Alive with the Sound of Cowbells
As governments all over this planet scratch their heads trying to solve the global economy problems, the free market is quietly fixing it where government is willing to step back. -- Lisa McMahon, editor The End of the Statist Quo By David Galland, Managing Director, Casey Research Here at Casey Research, we have been rather negative about the economy for many moons. To be otherwise in the face of the decades-long trend toward ever more government – along with its increasingly destructive and expensive meddling in the free markets – would have been foolish. And, so far, we have been right. However, I for one am beginning to see some light at the end of the tunnel. It won’t … [Read more...]
Where is Gold Going From Here?
In today's editorial, David Banister takes a look at Gold and where it could be going. He provides an excellent possible scenario that matches with my views and experience exactly. He is projecting a rally to the $1500 range with a pull back from there and a major take-off for the final wave to the blow-off top from there. This is exactly what we would expect based on Elliottwave patterns. Tim McMahon- editor How long and how high for Gold, and how to play it David Banister-www.MarketTrendForecast.com Regular readers of my articles on Gold over the past few years know that I have a theory on this Gold Bull market. In summary, it’s that we are in a 13 Fibonacci year uptrend that … [Read more...]
How The FED Prints Money- Part 3
Last week we looked at who gets all the money the FED prints and before that we looked at the process the FED uses to get the money "Out of Thin Air" and into the hands of people who can spend it. Today we are going to look at what is "Quantitative Easing" well it sounds cool anyway... ~editor What is Quantitative Easing? Fed’s Perspective & Writings Part 3 in a 6 Part Video Series on Quantitative Easing A Wall Street Journal article (10/27/10) on quantitative easing (QE) hints the Fed will take a middle of the road approach in terms of the size and duration of QE2. As we would expect, the stock and commodity markets’ initial reaction is negative. A middle of the road … [Read more...]
The Next Major Disaster Developing for Bond Holders
Elliott wave analysis can warn you of trend changes when the rest of the investment public least expects a market reversal. With that in mind, we have created a new report for our free Club EWI members: "The Next Major Disaster Developing for Bond Holders." In this free report, you get some of the latest commentary on fixed-income markets adapted from various Elliott Wave International's publications, including 2010 issues of Robert Prechter's monthly Elliott Wave Theorist and its sister publication, The Elliott Wave Financial Forecast. Enjoy this excerpt -- and for details on how to read this important Club EWI report free, today, look below. … [Read more...]
Depression Within a Depression
By James Quinn, Contributor, The Casey Report Regular Casey Report contributor James Quinn is the head of strategic planning for one of the world's most prestigious business schools and the host of TheBurningPlatform.com blog. In this article, he is presenting historical indicators that may tell us what’s in store for the U.S. economy. In recent months, worshippers at the altar of Keynes have been hyperventilating over the possibility Congress will run a deficit of “only” $1.5 trillion in 2010. They have issued dire proclamations about a replay of the 1937-1938 Depression within the Great Depression. White House favorite and #1 Keynesian on the planet, Paul Krugman, declared that not … [Read more...]
Inflation in the Real World
In the following article, Jake Weber from the Casey Report shows how commodity prices have increased an average of 48% over the last year even though "official" inflation statistics say we have only had a little over 1% inflation. What's going on? Typically this shows that inflation is on its way and will be here soon. Because commodities are leading indicators as they are thee raw materials used to produce the things we consume. ~Tim McMahon, editor By Jake Weber, Editor, The Casey Report As is often the case, there is a big difference between what the government statistics are reporting and what’s going on in the real world. According to the most recent inflation reading published … [Read more...]
Inflation on a 30 Year Mortgage
I recently received the following question: In 1970 I purchased a nice house in the suburbs of Albany, New York for $54,500. Although the price of the home today is well above the inflation rate, I was wondering how the inflated dollars I'm spending on the last few payments has changed over the past 30 years. The mortgage payment has been consistent but I'm paying in inflated dollars, I just don't know how much the value of each dollar has declined in purchasing power. How would I calculate that figure?- John … [Read more...]
