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Keyword: inflation

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  • Varadkar proposes tying welfare payments to inflation (Ireland)

    07/22/2016 11:01:34 PM PDT · by Olog-hai · 8 replies
    TheJournal.ie ^ | 21/07/2016 8:12 PM | Michael Sheils McNamee
    Minister for Social Protection Leo Varadkar has thrown his political weight behind indexing welfare payments to inflation. Speaking at MacGill Summer School in Donegal, the Dublin TD struck a socially aware tone throughout his speech — referring to the period of economic downturn as “Ireland’s lost decade” and bemoaning a stalling in living standards. “Were it not for social welfare payments over half of the country would be at risk of poverty,” he said, before he emphasized the need to “protect the value of these payments now and into the future”. “I believe this can best be done by indexing...
  • Venezuela’s inflation is set to top 1,600% next year

    07/18/2016 7:57:48 AM PDT · by C19fan · 18 replies
    Marketwatch ^ | July 18, 2016 | Ian Talley
    While most advanced economies struggle to lift inflation, none would want Venezuela‘s situation: Consumer-price inflation is forecast to hit 480% this year and top 1,640% in 2017, according to the International Monetary Fund. A shortage of medical supplies means infants and other sick patients are dying of treatable illnesses. Soldiers guard empty grocery store shelves. Inflation is so bad, the government has had to order bolivars by the planeload.
  • These Debt Slaves are the Government’s Largest Asset Class, and it will Haunt the Economy for Years

    06/15/2016 8:36:41 AM PDT · by Lorianne · 14 replies
    Wolf Street ^ | 13 June 2016 | Wolf Richter
    One of the biggest threats to our economic outlook.” Endless discussions of how important inflation is to the US economy, and how there hasn’t been enough of it in recent years, and how more inflation would be a godsend, has become the standard. The threat of lethal deflation is being brandished to rationalize all kinds of absurd monetary policies. And we know why: inflation is good only for debtors, in an over-indebted country. But that’s not true either. Because a lot of debtors, particularly those who funded their education with loans, are being strangled by … inflation. “College Tuition and...
  • On The Subject Of Inflation, Janet Yellen Always Brings The Comedy

    06/13/2016 5:43:46 AM PDT · by expat_panama · 11 replies
    Forbes ^ | Jun 12, 2016 | John Tamny
    “Don’t be afraid to say to anything because no matter what you say, no matter how idiotic it is, it has already been said by some eminent economist.” – Ludwig von Mises... ...the first laser printer (Xerox Star 8010) set consumers back $17,000 in 1981... ...the norm in a free economy... ...the very rich serve as “venture buyers” since only they have the means to purchase what is both expensive and unproven... ...luxury items down to prices that we can all afford. The first ball-point pen cost over $12, the first mobile phone nearly $4,000, while the first... ...logical and...
  • The California Primary: Millennials' Last Fling

    06/06/2016 8:28:19 AM PDT · by Kaslin · 22 replies
    American Thinker ^ | June 6, 2016 | Jeffrey Folks
    Millennials, who first arrived in 1980, are the largest generational group in American history. As such, they tend to have a deep-seated, some would say exaggerated, sense of their own importance. Now that the last of the millennials, those born in the late 1990s, have reached voting age, the millennial generation is exerting ever greater influence on presidential politics. The campaign of Bernie Sanders, one of the most radical leftists ever to run for the presidency, is almost their exclusive preserve. Sanders's platform is well targeted to the idealism of most millennials. It offers free universal health care ("Medicare for...
  • Official: Global Markets Seem Ready for an Interest Rate Hike

    05/30/2016 9:12:34 AM PDT · by BenLurkin · 7 replies
    VOA ^ | 05/30/2016
    A U.S. Federal Reserve Bank president said Monday the global markets seem to be poised for an interest rate hike this summer. James Bullard, president of the Federal Reserve Bank of Saint Louis, said his outlook was not "too surprising" since signs are pointing to a second quarter rebound in the U.S. gross domestic product, the value of all goods and services produced in the U.S. Bullard's remarks, made at an international conference in Seoul, South Korea, follow revised data Friday from the U.S. Commerce Department that the economy expanded faster than previously thought in the first three months of...
  • This Is How Much Your Health Insurance Payment Is About To Jump By

    05/26/2016 5:40:49 PM PDT · by Zakeet · 28 replies
    ZeroHedge ^ | May 26, 2016
    <p>It's official: years of warnings that Obamacare will lead to dramatic increases in healthcare premiums are about to be validated.</p> <p>As the WSJ writes, big health plans stung by losses in the first few years of the U.S. health law’s implementation are seeking hefty premium increases for individual plans sold through insurance exchanges in more than a dozen states.</p>
  • Price of corn flour in Venezuela soars 900 percent

    05/24/2016 9:03:28 AM PDT · by C19fan · 27 replies
    AFP ^ | May 24, 2016 | Staff
    Venezuelans on Tuesday woke up to discover that the government-controlled price of corn flour -- used to make corn patty arepas, a staple of local cuisine -- has risen 900 percent. The socialist government of President Nicolas Maduro had kept the price of corn flour frozen for 15 months at 19 bolivares a kilogram (two pounds).
  • Production of Coke halted in Venezuela for lack of sugar

    05/23/2016 3:32:18 PM PDT · by Red in Blue PA · 41 replies
    May 23 (Reuters) - The Venezuelan bottler of Coca-Cola has halted production of sugar-sweetened beverage due to a lack of sugar, a Coca-Cola Co spokeswoman said on Monday. Venezuela is in the midst of a deep recession, and spontaneous demonstrations and looting have become more common amid worsening food shortages, frequent power cuts and the world's highest inflation.
  • Venezuela: Countless Wounded after 5,000 Loot Supermarket

    05/11/2016 6:59:42 PM PDT · by ameribbean expat · 76 replies
    PanAm Post ^ | 05.112016 | Sabrina Martin
    As for March, there was an increase in yearly prices due to inflation — a 582.9 percent increase for food,
  • Venezuela Doesn't Have Enough Money to Pay for Its Money [Bloomberg Link Only]

    04/27/2016 10:12:27 AM PDT · by C19fan · 17 replies
    Bloomberg [Link Only] ^ | April 27, 2016 | Andrew Rosati
    here
  • Why The True Cost Of Living Is Much Higher Than We're Told (Or Sold)

    03/20/2016 6:23:09 PM PDT · by SkyPilot · 71 replies
    Zerohedge ^ | 20 Mar 16 | Adam Taggart and Tyler Durden
    Over the past decade, we've been told that inflation has been tame -- actually below the target the Federal Reserve would like to see. But if that's true, then why does the average household find it harder and harder to get by? The ugly reality is that the true annual cost of living is far outpacing the government's reported inflation rate. By nearly 10x in many parts of the country. This week, we welcome Ed Butowsky, developer of the Chapwood Index, to the program. His index is a 'real world' measure of how prices are increasing much faster than the...
  • Economic policymakers are at sea on inflation

    03/07/2016 4:30:45 AM PST · by expat_panama · 9 replies
    Washington Post ^ | March 6, 2016 | Lawrence Summers
    Here is a thought experiment that illuminates the challenges facing macroeconomic policymakers in the United States and the rest of the industrial world. Imagine that in a brief period, inflation expectations around the industrial world, as inferred from the indexed bond market or the inflation swaps market, rose by nearly 50 basis points to a level well above the 2 percent target, with larger increases foreseen at longer horizons. Imagine that at the same time, survey measures of inflation expectations such as those calculated by the University of Michigan and New York Fed in the United States were rising sharply....
  • Why Big Government Is Waging War Against Cash

    03/01/2016 7:13:31 PM PST · by MtnClimber · 53 replies
    Forbes ^ | 1 Mar, 2016 | Steve Forbes
    GAINING ATTENTION these days is the idea of abolishing high denominations of the dollar and the euro. This concept graphically displays the astonishing stupidity-and intellectual bankruptcy-of today's liberal economic policymakers and the economics profession. Larry Summers, a former Treasury Secretary and Harvard president, is pushing the U.S. to ban $50 and $100 bills. There's a lot of chatter, too, about prohibiting the €500 note. The ostensible reason is to help in the fight against terrorists, bribers, drug dealers and tax evaders by making it more inconvenient for these bad guys to move around and store their ill-gotten cash........ If the...
  • Saudis, Russia Agree to Freeze Oil Output; Iran Still Resists

    02/16/2016 11:08:01 AM PST · by Trumpinator · 12 replies
    nbcnews.com ^ | Feb 16 2016, 9:34 am ET | Reuters
    Saudis, Russia Agree to Freeze Oil Output; Iran Still Resists by Reuters Feb 16 2016, 9:34 am ET Top oil exporters Russia and Saudi Arabia agreed on Tuesday to freeze output levels but said the deal was contingent on other producers joining in - a major sticking point with Iran absent from the talks and determined to raise production. The Saudi, Russian, Qatari and Venezuelan oil ministers announced the proposal after a previously undisclosed meeting in Doha. It could become the first joint OPEC and non-OPEC deal in 15 years, aimed at tackling a growing oversupply of crude and helping...
  • Why Gold Has Been on a Tear in 2016 [UP 15% SINCE JAN. 1]

    02/11/2016 2:18:03 AM PST · by expat_panama · 44 replies
    Fortune ^ | February 9, 2016 | Aaron Task
    The stock market is having a horrible time so far in 2016, with the S&P 500 down more than 9%. Gold, on the other hand, is up nearly 10% year-to-date and hit a four-month high of just under $1200 per ounce on Monday before dipping 0.7% Tuesday to $1189.30. It's a bit of a cliche to say that people turn to gold in times of uncertainty: Sometimes that works, sometimes it doesn't. Gold did phenomenally well from 2000-2011 but really suffered after hitting nearly $2000 per ounce in 2011. From 2011 to 2015, the yellow metal pretty much fell in...
  • Federal Debt Just Exceeded $19 Trillion: $58,000 for Each Person in U.S.

    02/03/2016 2:41:30 PM PST · by Olog-hai · 43 replies
    Cybercast News Service ^ | February 3, 2016 | 10:18 AM EST | Romina Boccia
    On Monday the U.S. national debt hit a new record: $19,012,827,698,418. This is the first time the national debt has ever exceeded $19 trillion. That's more than $58,000 for each person who lives in the U.S. today (including children). The main culprit behind the rising deficits and debt is growing federal spending--especially among Social Security, Medicare, Medicaid, and Obamacare. Traditionally, Congress has set a limit for how much debt the U.S. may take on, known simply as the debt limit. But rather than put a higher limit on the debt, lawmakers and the president have repeatedly suspended the debt limit,...
  • We print money to bail out banks. Why can't we do it to solve climate change?

    01/30/2016 4:16:03 AM PST · by Oldeconomybuyer · 50 replies
    UK Guardian ^ | January 30, 2016 | by Matthias Kroll
    We need an estimated $1tn per year to stay below a global temperature rise of 2C. Creating new money might be the only way to meet this financial challenge. The international community has agreed on an ambitious agenda to curb climate change. Some 195 countries have decided to try and cut greenhouse gas emissions to a level that will limit the rise in average global temperatures to well below 2C. The question we now face is: how are we going to finance the changes needed to reach this goal? Quantitative easing - creating new money - might just be the...
  • Helicopter Money Arrives: Switzerland Referendum to Hand Out $2500 Monthly To All Citizens

    01/30/2016 10:12:20 AM PST · by ak267 · 33 replies
    zero hedge ^ | 1-29-2016 | Tyler Durden
    With Citi's chief economist proclaiming "only helicopter money can save the world now," and the Bank of England pre-empting paradropping money concerns, it appears that Australia's largest investment bank's forecast that money-drops were 12-18 months away was too conservative. While The Finns consider a "basic monthly income" for the entire population, Swiss residents are to vote on a countrywide referendum about a radical plan to pay every single adult a guaranteed income of around $2500 per month, with authorities insisting that people will still want to find a job.
  • Inflation in Ukraine hits 20-year high in 2015 of 43.3%

    01/11/2016 5:45:30 AM PST · by mac_truck · 10 replies
    Ukraine Today ^ | 1/6/2016 | Staff
    New figures from the state statistics office show inflation in Ukraine reached a 20-year high of 43.3% in 2015. That represents an increase of nearly 20% on 2014's figure of 24.9%. Items which saw the biggest jumps include gas, which rose in price nearly four times, hot water and heating, whose prices increased by nearly 80% and vegetables, which were almost 70% more expensive in 2015 than they were in 2014. In annual terms, no goods saw price falls between the two years.
  • Meat targeted for theft as food prices soar across Canada

    01/10/2016 10:36:43 PM PST · by Daffynition · 27 replies
    CTVNews.ca ^ | January 9, 2016 | staff reporter
    As food prices balloon across Canada, grocers say they are coping with a reported increase in meat product thefts. According to figures released by Statistics Canada in November, numerous types and cuts of meat have seen significant cost increases since 2014. The cost of beef is also predicted to rise another four per cent this year.
  • Most Americans are one paycheck away from the street

    01/06/2016 5:59:18 PM PST · by free_life · 55 replies
    MarketWatch ^ | Jan 6, 2016 | Quentin Fottrell
    Some 63% of people can't deal with a $500 emergency. Americans are starting 2016 with more job security, but most are still theoretically only one paycheck away from the street. Approximately 63% of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair, according to a survey released Wednesday of 1,000 adults by personal finance website Bankrate.com, up slightly from 62% last year. Faced with an emergency, they say they would raise the money by reducing spending elsewhere (23%), borrowing from family and/or friends (15%) or using credit cards to bridge...
  • A Fight for the Soul of Science (physicists, philosophers debate boundaries of science)

    12/17/2015 10:01:58 PM PST · by LibWhacker · 28 replies
    Quanta Magazine ^ | 12/16/15 | Natalie Wolchover
    A Fight for the Soul of Science String theory, the multiverse and other ideas of modern physics are potentially untestable. At a historic meeting in Munich, scientists and philosophers asked: should we trust them anyway? Laetitia Vancon for Quanta MagazinePhysicists George Ellis (center) and Joe Silk (right) at Ludwig Maximilian University in Munich on Dec. 7. By: Natalie WolchoverDecember 16, 2015 Comments (17) Share this: facebooktwitterredditmail PDF Print Physicists typically think they “need philosophers and historians of science like birds need ornithologists,” the Nobel laureate David Gross told a roomful of philosophers, historians and physicists last week in Munich, Germany,...
  • The Mystery of Missing Inflation Weighs on Fed Rate Move

    12/15/2015 3:41:27 AM PST · by expat_panama · 47 replies
    Wall Street Journal ^ | Dec. 13, 2015 | Josh Zumbrun
    The Federal Reserve has kept interest rates at near zero since the 2008 financial crisis. To raise them, it has come up with a new set of tools. Produced by Katy Burne, Christopher Kaeser, Arielle Ray and Mark Scheffler. But Fed officials face a troubling question: Jobs are on track, but inflation isn't... ...well below the Fed's 2% target. [snip] Low inflation-and low prices-sound beneficial but can stall growth in wages and profits. Debts are harder to pay off without inflation shrinking their burden. [snip] Former Fed Chairman Ben Bernanke, in an interview, pointed to Congress as one culprit for...
  • No cheer as China yuan hits four-and-a-half-year low, oil at seven-year low

    12/11/2015 4:48:04 AM PST · by expat_panama · 19 replies
    Reuters ^ | Fri Dec 11, 2015 | Dhara Ranasinghe
    World stocks were on the brink of a two-month low on Friday, as beaten-down oil prices and a slide in China's yuan to 4-1/2 year lows left markets in a somber mood. Volatile oil markets and worries about China, the world's biggest commodities consumer, have pressured many markets ahead of a widely anticipated interest rate hike by the U.S. Federal Reserve next week. MSCI's world stock index .MIWD00000PUS fell for a fifth straight day as emerging markets tumbled again and European shares .FTEU3 opened at a two-month low while the dollar steadied. "We are in risk-off mode," said Piotr Matys,...
  • McDonald’s hopes $2 menu is as popular as Dollar Menu

    11/17/2015 8:20:34 AM PST · by BenLurkin · 29 replies
    myrtlebeachonline ^ | CANDICE CHOI
    McDonald's isn't alone in struggling to get customers to let go of the $1 price. Wendy's tried replacing its 99-cent menu with a "Right Price Right Size" menu, but acknowledged the switch wasn't doing the job. Last month, it began promoting a limited-time "4 for $4" deal that includes a Jr. Bacon Cheeseburger, chicken nuggets, fries and a drink. Deborah Wahl, senior vice president of marketing for the U.S., said the McPick platform was designed to give people options. “Customers are looking for choice and flexibility. That’s sort of the new definition of value,” she said. While deals remain a...
  • U.S. Producer Prices Stymied by Low Inflation

    11/16/2015 3:19:30 AM PST · by expat_panama · 15 replies
    Wall Street Journal ^ | Nov. 13, 2015 | Jeffrey Sparshott And Kate Davidson
    WASHINGTON --A gauge of U.S. business prices fell in October, the latest sign of low inflation amid cheap gasoline and a strong dollar. The producer-price index, which measures the prices companies receive for goods and services, decreased 0.4% in October, the Labor Department said Friday. Excluding the volatile food and energy categories, so-called core prices were down 0.3% from the prior month. Economists surveyed by The Wall Street Journal had expected overall prices would rise 0.2% and core prices would rise 0.1%. Overall producer prices decreased 1.6% in October from a year earlier, the 10th straight year-over-year decline and the...
  • Ted Cruz is freaked out about inflation. But there has been absolutely none for a year.

    11/14/2015 8:29:53 PM PST · by 2ndDivisionVet · 103 replies
    Vox ^ | November 14, 2015 | Timothy B. Lee
    A lot of conservative voters — especially those old enough to have lived through the high inflation of the 1970s — are convinced that America is currently suffering from an inflation problem. Sen. Ted Cruz (R-TX) pandered to those voters in a recent Republican presidential debate, blaming the "loose money" policies of the Federal Reserve for raising the prices of various consumer products. But new data released Friday by the Bureau of Labor Statistics shows that overall, prices aren't going up. At all. Between September and October, prices actually fell slightly. And over the past year, the inflation rate was...
  • Ted Cruz is freaked out about inflation. But there has been absolutely none for a year.

    11/14/2015 8:29:53 PM PST · by 2ndDivisionVet · 18 replies
    Vox ^ | November 14, 2015 | Timothy B. Lee
    A lot of conservative voters — especially those old enough to have lived through the high inflation of the 1970s — are convinced that America is currently suffering from an inflation problem. Sen. Ted Cruz (R-TX) pandered to those voters in a recent Republican presidential debate, blaming the "loose money" policies of the Federal Reserve for raising the prices of various consumer products. But new data released Friday by the Bureau of Labor Statistics shows that overall, prices aren't going up. At all. Between September and October, prices actually fell slightly. And over the past year, the inflation rate was...
  • Any doubts over about December Fed hike may be swept away

    11/14/2015 7:59:42 AM PST · by BenLurkin · 23 replies
    in.reuters.com ^ | Jonathan Cable
    While most U.S. data has been relatively upbeat, retail sales rose less than expected in October, suggesting a slowdown in consumer spending that could temper expectations of a strong pickup in fourth-quarter economic growth. In the meantime, Britain's Bank of England was once pegged as likely to be the first major central bank to tighten policy but prices fell again last month, data will probably show on Tuesday. With inflation so far below its 2 percent target the BoE's Monetary Policy Committee won't be raising its benchmark rate from a record low 0.5 percent until at least April, a Reuters...
  • The Surprising Disappearance of Inflation

    10/22/2015 8:43:19 AM PDT · by Kaslin · 99 replies
    Townhall.com ^ | October 22, 2015 | Steve Chapman
    In a world in which the Cold War is a fading memory, North Korea and Cuba endure as museums of communism, so no one will forget how criminally insane it always was. In a world haunted by the specter of persistently falling prices, some countries are creating severe inflation, so we can be grateful for its virtual disappearance. One of the governments providing this public service is that of Venezuela, where the currency has lost so much value that even robbers reject it. A recent carjacking victim told The New York Times his armed captors had no interest in his...
  • Everything’s Deflating And Nobody Seems To Notice

    10/22/2015 10:19:33 AM PDT · by blam · 101 replies
    Zero Hedge - Automatic Earth ^ | 10-22-2015 | Tyler Durden - Ilargi Meijer
    Tyler Durden 10/22/2015 Submitted by Raul Ilargi Meijer via The Automatic Earth blog, Whenever we at the Automatic Earth explain, as we must have done at least a hundred times in our existence, that, and why, we refuse to define inflation and deflation as rising or falling prices (only), we always get a lot of comments and reactions implying that people either don’t understand why, or they think it’s silly to use a definition that nobody else seems to use. -More or less- recent events, though, show us once more why we’re right to insist on inflation being defined in...
  • Consumers shutting down as US economy deflates

    10/15/2015 9:16:50 AM PDT · by Lorianne · 91 replies
    CNBC ^ | 14 October 2015 | Jeff Cox
    The math is pretty simple: A lack of purchasing power for consumers has led to a lack of pricing power for companies. When it comes to the U.S. economy big-picture outlook, the ramifications are more complicated, and not particularly pleasant. Wednesday's producer price index reading, showing a monthly decline of 0.5 percent, demonstrates a larger problem: At a time when policymakers are hoping to generate the kind of inflation that would indicate strong growth, the reality is that deflation is looming as the larger threat. Declining prices often would be treated as a net positive by consumers, but income weakness...
  • Government Says No COLAs for Social Security in 2016

    10/15/2015 7:57:23 AM PDT · by SeekAndFind · 59 replies
    US News and World Report ^ | 10/15/2015 | STEPHEN OHLEMACHER
    WASHINGTON (AP) — There will be no benefit increase next year for millions of Social Security recipients, disabled veterans and federal retirees, the government said Thursday. It's just the third time in 40 years that payments will remain flat. All three times have come since 2010. And there's more bad news. The lack of a benefit increase means that many older people could face higher Medicare costs, an issue that has advocates lobbying Congress. The main reason for no increase next year is low gas prices. By law, the annual cost-of-living adjustment, or COLA, is based on a government measure...
  • The Universe Never Expands Faster Than the Speed of Light

    10/13/2015 11:04:06 PM PDT · by LibWhacker · 49 replies
    Preposterous Universe ^ | 10/13/15 | Sean Carroll
    The Universe Never Expands Faster Than the Speed of Light Breaking my radio silence here to get a little nitpick off my chest: the claim that during inflation, the universe “expanded faster than the speed of light.” It’s extraordinarily common, if utterly and hopelessly incorrect. (I just noticed it in this otherwise generally excellent post by Fraser Cain.) A Google search for “inflation superluminal expansion” reveals over 100,000 hits, although happily a few of the first ones are brave attempts to squelch the misconception. I can recommend this nice article by Tamara Davis and Charlie Lineweaver, which tries to address...
  • Fed Chair Janet Yellen 'dehydrated,' abruptly ends UMass talk on interest, inflation

    09/24/2015 5:00:55 PM PDT · by LostInBayport · 36 replies
    Mass Live ^ | September 24, 2015 | Jim Kinney
    AMHERST - Federal Reserve Board Chair Janet Yellen said Thursday that she expects the Fed to raise interest rates later this year and then continue gradual increases thereafter during a University of Massachusetts address that ended with her seeking medical attention. A spokesman for the university said the 69-year-old was fine after being checked out by EMTs and was to continue her schedule which included a faculty dinner at the home of Chancellor Kumble Subbaswamy. A spokesman for the Federal Reserve Board said, "Chair Yellen felt dehydrated at the end of a long speech under bright lights. As a precaution,...
  • Kaiser Study: Deductibles under Obamacare rising seven times faster than inflation

    09/24/2015 2:17:48 PM PDT · by SeekAndFind · 36 replies
    Hotair ^ | 09/24/2015 | KRISTINA RIBALI
    We all remember the promise – President Obama famously told us time and time again that ObamaCare would lower health insurance premiums by $2,500 a year for families. But unless you’re receiving a giant subsidy from the government for your insurance, you’re not paying less in premiums, in fact, for employer sponsored plans, premiums have risen nearly $5,000 since Obama promised to cut them. What about deductibles? They haven’t decreased either. But don’t just take my word for it.A new survey finds that in 2015 deductibles on employer-provided health plans actually rose by almost nine percent.According to a new...
  • Bill Gross' Latest: "Mainstream America Is Being Slowly Cooked Alive"

    09/23/2015 8:19:20 AM PDT · by SeekAndFind · 7 replies
    Zero Hedge ^ | 09/23/2015 | Tyler Durden
    While hardly as dramatic as Bill Gross' last letter in which he urged readers to "go to cash" as a result of the "Frankenstein creation" that ZIRP has created, his latest letter "Saved by Zero" takes a calmer stance and taking a page out of Paul Marshall's FT Op-Ed profiled yesterday, urges central banks to "get off zero" as the "developed world is beginning to run on empty because investments discounted at near zero over the intermediate future cannot provide cash flow or necessary capital gains to pay for past promises in an aging society. And don’t think that...
  • Wages have in effect fallen since the economic recovery, study says

    09/03/2015 2:54:16 PM PDT · by BenLurkin · 20 replies
    The declines were greatest for the lowest-paid workers in sectors where hiring has been strong — home health care, food preparation and retailing — even though wages were already below average to begin with in those service industries. “Stagnant wages are a problem for everyone at this point, but the imbalance in the economy has become more pronounced since the recession,” said Irene Tung, a senior policy researcher at the National Employment Law Project and co-author of the study. Jasmin Almodovar, a home health care aide in Cleveland, knows all about that. She has worked for the same health care...
  • Vladimir Putin seeks to dump the dollar in regional trade

    09/02/2015 12:46:19 PM PDT · by Tolerance Sucks Rocks · 22 replies
    The Washington Times ^ | September 1, 2015 | David R. Sands
    Russian President Vladimir Putin has a new target in the revived cold war with Washington — the U.S. dollar. The website Russia Today* reported Tuesday that Mr. Putin has drafted a bill to block the use of both the American greenback and the euro in trade between the bloc of countries that used to be part of the Soviet Union, including Russia, Armenia, Belarus, Kazakhstan and Tajikistan. The measure “would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets,” the Kremlin said in a...
  • Venezuela's Currency Is Now So Worthless That People Are Using It As Napkins

    08/18/2015 3:12:26 AM PDT · by blam · 11 replies
    BI ^ | 8-17-2015 | Mike Bird
    Mike BirdAugust 17,2015 There's an image going round that sums up just how ridiculous Venezuela's economy has become. A Reddit user uploaded a picture on Monday of a man using a 2 bolivar note to hold an empanada. According to Venezuela's official bolivar-dollar exchange rate, the man using his money as a napkin is wasting about $0.31 (Ł0.20). But on the black market, the reality is completely different. You can get 676.88 bolivars to the dollar, according to dolartoday.com. That means holding food with a 2 bolivar note costs the holder less than a third of one US cent.(snip)
  • Inflation alive and well in the service sector

    08/14/2015 7:08:59 PM PDT · by BenLurkin · 2 replies
    cnbc ^ | John W. Schoen
    Led by a steep slide in energy prices over the last 12 months, prices of a wide range of global raw materials—everything from iron ore to sugar—have been falling lately. That's prompted fears that deflation may worsen a global economic slowdown. But in the U.S., those fears overlook the long-term growth of services, where price trends have been very different. ... Falling prices are usually a sign that demand from companies and consumers is weak and that the economy may be hitting a soft spot. But when the price of services is taken into account, inflation seems less tame than...
  • Fed 'close' to hiking rates, economy near normal: Lockhart

    08/10/2015 12:38:48 PM PDT · by SoFloFreeper · 22 replies
    Reuters ^ | 8/10/15
    Economic conditions in the United States have largely returned to normal and a Federal Reserve decision to raise interest rates should come soon, Atlanta Fed President Dennis Lockhart said on Monday.... "The economy has made great gains and is approaching an acceptable normal ... conditions are no longer extraordinary." He later told journalists he was "very disposed" to a rate increase at the Fed's September policy meeting,
  • I Sure Am Glad There's No Inflation

    08/05/2015 10:02:49 AM PDT · by RedMominBlueState · 41 replies
    Oftwominds.com ^ | August 5, 2015 | Charles Hugh Smith
    I sure am glad there's no inflation, because these "stable prices" the Federal Reserve keeps jaw-jacking about are putting us in a world of hurt. Those of us outside the inner circles of power are glad there's no inflation, because we'd rather get more for our money (deflation) rather than less for our money (inflation). You know what I mean: the package that once held 16 ounces now only holds 13 ounces. A medication that once cost $79 now costs $79,000. (This is a much slighter exaggeration than you might imagine.) Despite all these widely known examples of rampant inflation,...
  • Raising interest rates with zero inflation is a hard sell

    08/05/2015 6:10:02 AM PDT · by expat_panama · 50 replies
    Yahoo Finance ^ | Wed, Aug 5, 2015 | Mike Dolan
    LONDON (Reuters) - Americans and Britons bracing for their first interest rate rises in almost a decade are puzzled: why are rates about to go up when there's no inflation? Both the Federal Reserve and Bank of England are proclaiming that they are on the cusp of raising interest rates for the first time in almost a decade. It may take a few months, but the message they are sending still heavily-indebted households either side of the Atlantic is clear: 'be warned'. It's not hard to see why near-zero interest rates should be 'normalized' when you do a quick economic...
  • Life is getting tougher for renters, as rent hikes outpace wage gains

    08/03/2015 9:17:46 PM PDT · by 2ndDivisionVet · 91 replies
    The Orange County Register ^ | August 3, 2015 | Jeff Collins
    New evidence surfaced last week showing that life is getting worse for America’s renters, two news reports said. The Associated Press and Wall Street Journal did a mash-up of two economic reports demonstrating that monthly rents are rising faster than incomes. The online real estate site Zillow.com reported that rents increased 4.3 percent in June from a year earlier in the nation as a whole (and 3 percent in Orange County). That’s double June’s average hourly wage increase of 2 percent reflected in government data, the news outlets reported. “Rents are insanely unaffordable on a historical basis in the United...
  • From rents to haircuts, Americans start to feel price increases

    08/02/2015 4:12:58 PM PDT · by BenLurkin · 61 replies
    ap ^ | Christopher S. Rugaber
    Apart­ment rents are up. So are prices for restaurant meals, haircuts, gym memberships and a cup of coffee. For consumers who have become used to flat or even falling prices for years, an unfamiliar sight has emerged in many corners of the economy: Inflation is ticking up.
  • Inflation deniers emboldened by gold's struggles

    07/28/2015 9:08:00 PM PDT · by BenLurkin · 6 replies
    resourceinvestor.com ^ | July 28, 2015 | Clint Siegner
    The deflationists argue that hugely accommodative monetary policy in the U.S., Japan (and nearly everywhere else in the world) has failed to produce real growth. Debt and obligations to social programs such as Medicare and pensions are so massive they can’t be paid. Therefore, according to deflation forecasters, they won’t be. Their predictions of default and accompanying bank failures, bankruptcies, and surging unemployment were bolstered by recent news out of Greece. Falling commodity prices and economic malaise have reemerged. They claim zero interest rate policy and quantitative easing merely delayed the inevitable for a bit. The inflation camp shares the...
  • Of Presidents and Presidencies, and Things Presidential

    07/24/2015 8:15:53 AM PDT · by jfd1776 · 2 replies
    Illinois Review ^ | July 24, 2015 A.D. | John F. Di Leo
    We worry about our presidential primary process. Some wonder why. Some believe that we worry too much, and it all fixes itself in time; why get so worked up? Be patient, they say, the primaries will handle it, and then comes the election, don’t worry so much. And if you’re not in an early primary state, you have no effect anyway, so you’re better off saving your energy and just watching TV or going to a game. So we’re told, especially by friends and acquaintances who just don’t think it all matters that much, and who wonder why we’re willing...
  • Forget gold, the sugar price collapse is far more dramatic [deflation, not debasing]

    07/22/2015 4:13:03 AM PDT · by expat_panama · 32 replies
    UK Telegraph ^ | 21 Jul 2015 | John Ficenec
    Things are not so sweet for the sugar market. Prices have been tumbling and reached a six-year low on Monday on news that Brazil's cane growers are in for a bumper harvest. But while gold made the headlines, the dramatic fall in the sugar price was widely overlooked, despite closing down 4.4pc, compared with a 2.3pc slump in the price of bullion. Over the past year alone, sugar prices have fallen by a quarter. So why has everything turned sour? Bumper Harvest Monday's sharp price drop was driven by signs that Brazil, the world's biggest producer of sugar, is on...