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.
China-based Baidu, one on the largest internet companies in the world, has begun integrating Bitcoins into their network. Reports indicate strong Bitcoin interest in China. BTC, the China-based Bitcoin exchange, amounts to at an estimated 200k Bitcoins a day.
When revolutions start, it's not uncommon for almost nobody to notice. It may take years or even decades before historians can look back, point a finger and say "that's where it really began."
Gold was trading near four month lows today after its biggest drop in seven weeks yesterday. Another bout of peculiar concentrated selling led to Comex halting trading in December gold futures twice yesterday, the fourth time in less than 3 months.
The most famous law of economics that everyone learns in Econ 101 is the law of supply and demand. Essentially, if there are more buyers than sellers then prices will go up until equilibrium is reached. Conversely, if there are more sellers than buyers prices will decline. The stock market is no different.
This year, longtime bear and well-known economic forecaster, Gary Shilling, recently made a splash in the financial community by turning positive on the U.S. economy and dollar. Given the lingering amount of pessimism by many investors after two major stock market crashes and the fear of another repeat event, there’s at least one thing that Shilling makes clear that investors SHOULDN’T be worried about happening anytime soon: a collapse of the U.S. dollar.
Well, it’s official, the economic talkinghead establishment has declared war on Germany. The opening shots in this battle were fired by none other than the United States Treasury Department,which had the audacity to blame Germany for a weak Eurozone recovery in its semi-annual foreign exchange report.
It's evident that Yellen's approach to monetary policy is consequently the same as Bernanke's, and that QE is here for the foreseeable future. With that in mind it's time to explore the Fed's actions in more detail.