Gold Far From Bubble Phase: Marc Faber

With more than 40 years as an economist to his credit and claiming gold as the “biggest position in my life,” Gloom Boom & Doom Report Publisher Marc Faber assures us that gold is nowhere near a bubble phase, but cautions that corrections of 40% are not unusual in a bull market. At . . . → Read More: Gold Far From Bubble Phase: Marc Faber

Coming Full Circle

The newest bubble appears to be (wait for it…) real estate. Specifically, farmland:

The latest Grant’s Interest Rate Observer reports that farmers in Sioux County, Iowa bidding on a 74-acre tract forced a winning bid price of $20,000 an acre, far higher than the previous record price of $16,750 per acre set in October.

. . . → Read More: Coming Full Circle

A Monetary Policy that Encourages Malinvestment

Thorsten Polleit, of the Frankfurt School of Finance & Management, penned an article in The Free Market newsletter of the Ludwig von Mises Institute titled “The Many Names for Money Creation.”

It starts off almost humorous, reading more like an interesting, mood-lightening sidebar to a banner article titled “We’re Freaking Doomed (WFD)!” as he . . . → Read More: A Monetary Policy that Encourages Malinvestment

The Economic Future of Ireland

The economic and financial crisis of 2008/2009 hit Ireland heavily. The asset price bubble and the subsequent deflation have added to the uncertain macroeconomic outlook. How did the country went from the times of the “Irish miracle” to the prolonged economic slowdown? Following the beginning of the 2008/2009 economic and financial crisis, Ireland was . . . → Read More: The Economic Future of Ireland

China Desperate for Gold

Reported by imarketnews.com: Sales by overseas central banks could see a sharp fall in gold prices, the Financial News reported Wednesday, citing Zou Pingzuo, a central bank researcher.

“Investors should be careful about investing in gold. Gold prices could fall sharply because of intensive gold sales by the U.S. and other overseas central . . . → Read More: China Desperate for Gold

Gold and Silver Versus Market Index Bubbles

Below is a chart Nick of Sharelynx has been working on to show how much of a bubble gold and silver are in (or not).

Note that the x-axis does not have time on it because each bubble had a different timelength (some of the bubbles are 20 years, others 5 years). This does . . . → Read More: Gold and Silver Versus Market Index Bubbles

Protecting yourself from World War III: Debtors vs Creditors

Steve Keen is an Australian Post-Keynesian economist credited as having “seen it coming” in this survey of research by economists or financial market commentators. Keen was one of only eleven researchers who qualified, which included Schiff, Roubini, and Shiller.

Steve Keen is a follower of Hyman Minsky’s “Financial Instability Hypothesis”, which he summarises as:

. . . → Read More: Protecting yourself from World War III: Debtors vs Creditors

Deflation and Helicopter Ben: the U.S. economy on the line

There’s been a lot of chatter in the financial news this past week concerning deflation, with one blogger for the Motley Fool [http://caps.fool.com/blogs/viewpost.aspx?bpid=111216&t=01001019292467236494] even proclaiming, “Clearly deflation is here.” But is it?

Are we there yet?

Deflation is defined as falling prices over a lengthy and sustained period of . . . → Read More: Deflation and Helicopter Ben: the U.S. economy on the line