Who Benefits from ‘Moderate’ Inflation?

The fallacy that inflation is beneficial has gained great traction in recent years. The generation of working, saving U.S. taxpayers that lived through the runaway inflation of the 1970s came out of it convinced that inflation must be stomped out at all costs. But it turned out zero inflation wasn’t so great for the sectors of society with the most the economic and political power—government and political leaders, financial institutions and the banking system. So a process of re-education of the public began, with central bankers and politicians explaining that a certain level of inflation was necessary to create jobs and allow the economy to grow, and mainstream media obligingly echoing the conventional wisdom.

From that highly effective propaganda campaign emerged what is now widely accepted as economic dogma, that a slow, steady rise in inflation at some pre-determined rate is the optimal condition for healthy economic growth.

Read More >

Farmers Increase Potassium Help Plants Discriminate over Cesium

On September 12, we re-blogged Iori Mochizuki in What's The Fukushuma 311 - Japanese National Now Reporting from Romania, where we find a volcanic passion to do what is right, and we showed what was at the time, a newly smoking volcano on the Pacific Ring of Fire.

Now the same volcano, Russia's Klyuchevskoy, north of Japan, has just sent a pillar of fire 1000M into the sky:

Read More >

Can Bitcoin Be Tamed?

Bitcoin, the virtual alternate currency that has swept the tech world, made headlines again recently when a billion-dollar Bitcoin-based enterprise called Silk Road was shut down in the wake of the arrest of its operator on a variety of shocking charges. The crack-down was cheered by investors and entrepreneurs hoping to convince regulators of Bitcoin’s respectability. But even if the online currency is corralled and regulated and co-opted by the government, there’s nothing to say “miners” outside the regulatory system can’t continue transacting with non-official, free-range Bitcoins. After all, the decentralized alternative currency was designed for just that purpose.

Read More >

Bank of England’s Carney Criticizes Japan for Wrong Mistakes

Mark Carney, the new Governor of the Bank of England, recently expressed the need for the British economy to avoid the “mistakes” that resulted in Japan’s so-called “Lost Decade” and continuing economic doldrums. The only problem is, Carney has it wrong about what those mistakes were.

Carney contends that Japan, when its economy slumped into recession in the 1990s, did not sufficiently reform its banking sector and rolled back its stimulus efforts too soon. Carney blames those shortcomings for what came to be known as Japan’s “Lost Decade”—or, more correctly, “Lost Decades.” As WealthCycles.com wrote back in 2010:

Read More >

Orwell Correct-Slavery Returned Precisely by 1984

On accounts both surveillance and labor.

To watch is to control, additionally, it is in service of other kinds of control.

In 1973, then-U.S. President Richard Nixon said citizens would be okay with the National Security Agency (NSA) doing CIA work, spying on American telecom “to control [the freedom of assembly and speech of] people protesting the Vietnam War.” There’ve been upgrades post 1984, but post telephony, Internet surveillance was “legalized” three years after broad adoption by 1999.

Read More >

Miners High-Risk Despite Modern Gold Rush

Just east of Sacramento and right on the edge of the Sierra Nevada mountains lies a seemingly bucolic area that was, in the 1840s, the hub of the California Gold Rush. Today, more than 150 years later, this same region is beginning to experience a mining renaissance. Is it possible that California will experience a second Gold Rush and the economic boom period that accompanied it? Not likely, but there is enough renewed enthusiasm for mining in the state that miners are willing to take on even California’s notoriously onerous environmental hurdles in order to gain access to the “gold in them thar hills.”

In a recent news report for All Things Considered, NPR reporter Lauren Sommer visited the Lincoln Project Mine in Sutter Creek, California, where she saw first-hand the rebirth of mining in the “Mother Lode.” The Lincoln Project Mine is just one of several mines that mining companies either have opened or plan to open in the next few years. If you are wondering why these abandoned mines are re-opening after decades of disuse, the answer is simple: the steadily climbing price of gold.

Read More >

Food Fraud Conceals Rising Price Inflation

If inflation is not the first topic that comes to mind when you read about food fraud, you are not alone. There is no immediate, intuitive connection between recent sensational headlines about horsemeat being found in so-called beef lasagnas and the concept of price inflation.

But in fact, it is price inflation that is causing food fraud. Everyone has experienced shrinking package sizes where price is maintained (quantitative easing), offsetting higher input costs.

However as per this recent Zerohedge article, quality and ingredient substitutions are now the rage:

Read More >

Venezuela Devalues Almost 47% -- Too Late For Many

Just like that, boom, devaluation happens, the snap decision of a desperate government with socialist desires to just give and give and give—but first it must take.

Venezuela just devalued its currency, the bolivar, by 46.69%.

If you as a Venezuelan had $10,000 held in bolivars earlier today, it is too late to buy gold and silver to protect from this loss; you now have less than $5,400 in purchasing power this afternoon. If you stored or saved your hard-earned wealth in silver or gold, congratulations: you have preserved 100% of your wealth; and it could even be said your wealth went up 46% in bolivar terms.

Venezuela Bolivar vs Dollar 2002

Read More >

Food Price Inflation May Be Gold Rush Trigger

If there is one economic indicator that almost anyone can relate to, it is the price of food, and for the past several years food prices have been going up year over year.

In 2008, food prices globally rose to unprecedented levels. While there was a marked drop in the next year, prices spiked again in mid-2011, exceeding 2008 levels and remaining relatively high through the rest of year and all of 2012. Many factors influence food price volatility, including agriculture and energy policy, commodity prices and market speculation, extreme weather events, rising global demand, and falling surplus stocks.

One reason for the sustained price increases is the pervasive drought that has plagued the U.S. since 2010 and that has by now affected more than 65% of the country. The ramifications of these drought conditions are profound.

Read More >

Price Inflation Prompted Stampede into Silver and Gold Presaged by Warburg Sale

We have long informed WealthCycles readers that the herd rush into physical real hard assets will be prompted by rising prices (price inflation), and that the deflation and ongoing re-inflation in the monetary system ratchets the eventual consequences higher. The closest and most scientific hint we have found so far to indicate when the tide will turn comes from Rensselaer Polytechnic Institute:

When the number of committed opinion holders is below 10 percent, there is no visible progress in the spread of ideas. It would literally take the amount of time comparable to the age of the universe for this size group to reach the majority,” said SCNARC Director Boleslaw Szymanski, the Claire and Roland Schmitt Distinguished Professor at Rensselaer. “Once that number grows above 10 percent, the idea spreads like flame.”

So how close are we to the 10% threshold?

Read More >

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | | NEXT ›