In his masterpiece The General Theory of Employment, Interest and Money John Maynard Keynes referred to what he called the 'euthanasia of the rentier'. Keynes argued that interest rates should be lowered to the point where it secures full employment (through an increase in investments).
Currently, market breadth is very strong with over 80% of stocks in long-term upward trends and does not indicate a top is in the process of being formed. Also, more than 92% of the 50 states in the US are experiencing economic growth and the risk of a recession is quite remote.
In the last 40 years, gold has gone through two great bull markets, with a miserable 20-year period of sideways-to-lower prices in between. As that frustrating 20-year period unfolded, gold’s many fans had no idea what lie ahead, what those 20 years would bring.
There was a very "wonkish" article by Stephen Williamson over the weekend discussing the impact of quantitative easing on inflationary expectations. The article is filled with economic equations discussing interest rates and inflationary expectations but...
This is going to sound harsh, but any discussion about economics is pointless without a fundamental understanding of the fractional reserve banking system on which our economy is built.
Last week was a bad one for gold, along with silver and the mining shares. I’d like to say that this only means their upward potential is now even greater, but that kind of logic only applies in the very long-term.
Most people — certainly most governments and economists — define inflation as a general rise in prices. But this is wrong. Inflation is an increase in the money supply, of which a rising general price level is just one possible result — and not the most common one.