The first topic this week is “The Next Financial Crisis – The Confidence Game”. The weak economic growth continues below official expectations, with GDP growth for the second quarter coming in at a meager 1.2%. Coming next may be some form of helicopter drops and other forms of stimulus. Jim and John discuss how it will done, through much higher taxes and wealth redistribution, or tax cuts to stimulate growth. Jim also discusses if we are heading for another financial crisis, and how it could begin. He also looks at the economic pronouncements coming from the political conventions, how they differ, and where economic reality may lie. The next Big Picture topic is “Deflation Moving to Inflation”. We’ve been in a disinflationary environment for 35 years. Jim looks at how much longer this trend could last, and when a new inflationary trend may finally begin. He also explains the concept of helicopter drops, and what this means for investors.