Central Banks are like the giant gorilla of the investment world. Everyone thinks they can do anything they want. But can they? Or are they subject to the laws of the universe just like everyone else? They do wield a lot of clout for a day or so when a new announcement comes out but do they really have a lasting effect on the markets? In this article Mark Galasiewski of Elliott Wave International gives us a look at what the effect of the Central Banks really is. -- Editor Think That Central Banks Move the Markets? Think Again. By Mark Galasiewski The following is excerpted from Elliott Wave International’s Global Market Perspective. Conventional wisdom says that central banks can … [Read more...]
Deflationary Forces Hit the Movies
Deflationary Forces- On March 4th 2009 the New York Times ran an article entitled, "Theater Chain Begins Recession Special: $1 Popcorn and Sodas" talking about Carmike Cinemas instituting their own "stimulus plan". In an effort to help flagging weekday sales the theater chain is cutting those outrageous concession stand prices. Normally during tough times people will cut back on discretionary spending perhaps opting for a night at home with Netflix rather than a night out at the theater. And this is what seems to be happening during weekday nights. However, during weekends quite the opposite is happening. It seems that receipts on weekends are actually up 17% so far in 2009 over … [Read more...]
Deflation and Depression through the Years
By Tim McMahon, Editor Deflation has cropped up at various times throughout the nineteenth and twentieth centuries. Overall since 1913 when the Bureau of Labor Statistics began tracking inflation we have had 22 years that had one or more months when the annual inflation rate was negative (i.e. deflation). Most of those are clumped into larger deflationary periods. The six major deflationary periods are: January 1921 - February 1923 26 months July 1924 - November 1924 5 months July 1926 - November 1933 7 ½ years (with only 5 positive months and 5 zero inflation months.) March 1938 - January 1940 18 months May 1949 - June 1950 … [Read more...]
6 Questions about the Financial Crisis
March 11, 2009 Elliott Wave International, receives thousands of questions every year from web site visitors and subscribers on their free Message Board. Here the company shares 6 of the recent critical questions on the financial crisis and 6 answers provided by their professional analysts. For more free questions and answers or to submit your own question, visit Elliott Wave International’s Message Board. Q: Can increased government spending help stop the crisis? What do you think about the new mortgage bailout plan – or bailouts and proposals for additional government spending in general? The opinions on whether or not this will ultimately work seem so divided... … [Read more...]
Zimbabwe Hyperinflation and the U.S. Dollar
The (Zimbabwean) Dollar - The Point of No Return By John Lee, CFA Last week, Zimbabwe slashed 12 zeros from its currency as hyperinflation continued to erode its value, the country's central bank announced in late January. The government instituted price cuts to arrest inflation. As time went by, it became apparent the forced price cuts cause bare shelves in shops and many businesses to close. "Even in the face of current economic and political challenges confronting the economy, the Zimbabwe dollar ought to and must remain the nation's currency, so as to safeguard our national identity and sovereignty... Our national currency is a fundamental economic pillar of our sovereignty," … [Read more...]
In Inflation Everything is More Expensive
Not Even Crack Heads Can Escape this Economy By Charles Delvalle Everyone’s having a hard time in this economy, even crack heads. We’ve all been talking about how wicked inflation has been over the past two years. Apparently Gus Young Jr. of West Palm Beach wasn’t listening. In a fit of rage, he destroyed a DVD case and a Plexiglass counter after his friendly neighborhood drug dealer told him that the price of a rock of crack cocaine had gone from $10 to $20. And get this: on the way to jail, he shared his displeasure of the inflated crack prices with officers. Let this be a lesson that nothing escapes the reach of inflation. Not milk, butter, or in this case, crack. This … [Read more...]
Can the Federal Government Really Stop a Deflation?
The Last Bastion Against Deflation: The Federal Government This article is part of a syndicated series about deflation from market analyst Robert Prechter, the world’s foremost expert on and proponent of the deflationary scenario. For more on deflation and how you can survive it, download Prechter’s FREE 60-page Deflation Survival eBook, part of Prechter’s NEW Deflation Survival Guide. The following article was adapted from Robert Prechter’s NEW Deflation Survival eBook, a free 60-page compilation of Prechter’s most important teachings and warnings about deflation. By Robert Prechter, CMT Now that the downward portion of the credit cycle is firmly in force, further inflation is … [Read more...]
What is so bad about Trade Protectionism?
By Tim McMahon "As the bill moved through Congress, formal protests from foreign countries flooded into Washington, eventually adding up to 200 pages. Both houses voted aye nonetheless. While the legislation sat on the President's desk, 1,028 American economists called for a veto. Herbert Hoover made it the law of the land anyway, swallowing his own reservations and, on June 17, signing the Tariff Act of 1930".-- Time Magazine You may have heard of Smoot-Hawley and not have a clue what language they are speaking. According to Wikipedia, The Smoot-Hawley Tariff Act was an act signed into law on June 17, 1930, that raised U.S. tariffs on over 20,000 imported goods to record levels. … [Read more...]
Zimbabwe-hyperinflation-and-the-u-s-dollar (moved)
This page has moved if you are not redirected please click here: http://inflationdata.com/articles/2009/02/26/zimbabwe-hyperinflation-us-dollar/ … [Read more...]
How to Protect Yourself During a Deflation
10 Things You Should and Shouldn't Do During Deflation This article is part of a syndicated series about deflation from market analyst Robert Prechter, the world’s foremost expert on and proponent of the deflationary scenario. For more on deflation and how you can survive it, download Prechter’s FREE 60-page Deflation Survival eBook, part of Prechter’s NEW Deflation Survival Guide. The following article was adapted from Robert Prechter’s NEW Deflation Survival eBook, a free 60-page compilation of Prechter’s most important teachings and warnings about deflation. By Robert Prechter, CMT 1) Should you invest in real estate? … [Read more...]
