In my article What is Stagflation, I wrote: The simple definition of Stagflation is a “stagnant economy coupled with price inflation”. Thus the term Stagflation… it has nothing to do with Deer. In other words, in stagflation prices are going up while the economy is going down. The word was coined during the inflationary period of the 1970’s. In the following article Frank Shostak goes into more depth on stagflation. ~ Tim McMahon, editor What is Stagflation? The occurrence of stagflation is associated with a situation of general strengthening in the momentum of prices while at the same time the pace of economic activity is declining. A famous stagflation episode occurred during the … [Read more...]
The Source of the Eurozone’s Economic Woes
In today's post, Daniel Lacalle looks at the problems plaguing the eurozone. He says their major problems aren't China, rate hikes, or the Ukraine war. Instead, he demonstrates that the curse of the eurozone is central planning. Subsidizing obsolete sectors and zombie firms, bloated government spending, and high taxes. ~Tim McMahon, editor The Eurozone Disaster: Between Stagnation and Stagflation The eurozone economy is more than weak. It is in deep contraction, and the data is staggering. The eurozone manufacturing purchasing managers’ index (PMI), compiled by S&P Global, fell to a three-month low of 43.1 in October, the sixteenth consecutive month of contraction. However, … [Read more...]
How the Dollar Affects Gold Prices
Interview with Jim Puplava, by Jeff Clark, Casey Research Jim Puplava has robust convictions….The CEO of Financial Sense News Hour, Jim is a man you should listen to carefully if gold factors in your portfolio or if you are thinking about adding gold anytime soon. In this interview, Jim talks about how the dollar affects gold prices. He discusses whether we are moving into a phase of deflation or inflation and gives his views on what exactly that will mean to gold investors. He discusses the likely impact of inflationary or deflationary forces, which one he believes will win out, and the effect it will have on our economy. Finally, he makes a very interesting prediction. Of course, … [Read more...]
What Happens to Gold if We Enter a Recession or Depression?
By Jeff Clark, Casey Research Mayan prophecies aside, many of the senior Casey Research staff believe that economic, monetary, and fiscal pressures could come to a head this year. The massive buildup of global debt, continued reckless deficit spending, and the lack of sound political leadership to reverse either trend point to a potentially ugly tipping point. What happens to our investments if we enter another recession or – gulp – a depression? Here's an updated snapshot of the gold price during each recession since 1955. … [Read more...]
Stagflation – What is it?
What is Stagflation? The simple definition of Stagflation is a "stagnant economy coupled with price inflation". Thus the term Stagflation... it has nothing to do with Deer. In other words, in stagflation prices are going up while the economy is going down. The word was coined during the inflationary period of the 1970's. Under normal conditions one would expect inflation to heat up the economy i.e. increase buying demand. That is one reason the FED generally increases interest rates during periods of higher inflation. This helps to cool the economy and prevent inflation from spiraling out of control. Of course ,if you have read other articles on this site, you will know that … [Read more...]