We
won't waste our readers' time with the details of all the 56
documented instances of hyperinflation in the modern, and not so modern,
world. They can do so on their own by reading the attached CATO
working paper by Hanke and Krus titled simply enough "World
Hyperinflations." Those who do read it will discover the details of how
it happened to be that in post World War 2 Hungary the equivalent
daily inflation rate of 207%, the highest ever recorded, led to a price
doubling every 15 hours, certainly one upping such well-known instance
of CTRL-P abandon as Zimbabwe (24.7 hours) and Weimar Germany (a
tortoise-like 3.70 days). This and much more. What we will point is
that at no time in recorded history did a monetary regime end in "hyperdeflation." In fact there is not one hyperdeflationary
episode of note. Although, we are quite certain, that virtually all of
the 56 and counting hyperinflations in the world, were at one point
borderline hyperdeflationary. All it took was central planner stupidity
to get the table below, and a paper with the abovementioned title
instead of "World Hyperdeflations." The Shape Of 40 Years Of Inflation
While many claim that inflation is at historic lows, those who spend a large share of their income on necessities might disagree. Inflation for those who spend a large proportion of their income on things like medical services, food, transport, clothing and energy never really went away. And that was also true during the mid 2000s — while headline inflation levels remained low, these numbers masked significant increases in necessities; certainly never to the extent of the 1970s, but not as slight as the CPI rate — pushed downward by deflation in things like consumer electronics imports from Asia — suggested. This biflationary (or polyflationary?) reality is totally ignored by a single CPI figure. To get a true comprehension of the shape of prices, we must look at a much broader set of data.The Barron's "Cover" Is Back
Just
when all hope was gone that the market has lost all connection with
newsflow, discounting, or fundamentals, and all that mattered was how
loudly this or that head of printing could jaw(or finger)bone stocks up,
here comes that patron saint of all contrarian indicators, the
Barron's cover, and "Tough as Teflon."
Or at least this was before central planning. Nowadays, every downtick
is a catalyst to buy, as it has become a well known fact that even a
0.1% drop in the market is not only a catalyst for widespread panic, but
also grounds for immediate promises of endless easing by any and all
Goldman affiliated central banks (that would be all of them).Spain's Debt Buyer Of Last Resort Becomes Seller In Scramble To Fund Deposit Outflows
Several days ago we reported that Spanish financial institutions suffered the largest deposit outflow on record in the month of July when a whopping EUR74 billion, or 5% of the country's entire asset base, picked up and left, the bulk of it most likely taking the well-known path of least resistance to the safety of Swiss and German bank vaults. We showed how this looks visually, and as the chart below confirms it can be summarized in one word only: waterfall. And while in isolation this news was bad enough, a far more troubling implication arises when one considers that in Europe's financial Ice-9 world, in which the interbank market has been dead for over a year, and where the ECB is the shadow lender of only resort, providing funding via various repo channels to local banks to fund Spain's deficit by purchasing sovereign bonds in the primary market. To wit: since the entire financial system's liabilities (deposits) just declined by a record EUR74 in one month, since the consolidated balance sheet has to balance, either Spain's (thoroughly insolvent) banks had to generate EUR74 billion in shareholder equity in one month, i.e. profits - a prospect which is rather amusing considering Spain's banking system recently officially demanded a European bailout, or banks had to sell a like amount of assets in order to fund this outflow. Naturally, they chose the latter. The problem is that the security they sold is the one which only the banks have been buying recently in order to preserve the illusion that Spain is solvent. It was Spanish sovereign bonds.
Russia’s Gazprom Tightens Its Stranglehold On Europe, France Falls: The Natural Gas War Gets Dirty
08/31/2012 - 21:15
Will he, won’t he? Either way, gold says more QE is coming in due course regardless…
I went to see 2016: Obama’s America.
Dinesh D’Souza wrote, stars in, directed, narrates, and did the
original research for it. If we look at this from the point of view of
its success as a documentary, I think it is effective. It is making
money in theaters. This is amazing for a documentary. It is a campaign
year documentary, and it is a good one.
The KWN Weekly Metals Wrap – We have added new segments to the KWN
Weekly Metals Wrap covering gold, silver, trading and a plethora of
other factors affecting the precious metals markets. I am giving King
World News listeners globally access to what has long been my secret
weapons in researching where gold and silver are headed directionally
along with the COT Report. We Cover the Commitment of Traders Report in
detail as well as a number of other factors which can influence the gold
and silver market price action.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
No comments:
Post a Comment