Is this a time for monetary policy easing?

`Headline inflation’: The year-on-year change in CPI-IW, with target zone superposed.

The best price index in India is the CPI-IW. `Headline inflation’ in India corresponds to the widely watched year-on-year change in the CPI-IW. The above graph shows us the experience of inflation in India from 1999 onwards. The informal target of policy . . . → Read More: Is this a time for monetary policy easing?

Taxes Are Going Up

Quelle surprise:

The tax this year will increase by two percentage points, to 6.2 percent from 4.2 percent, on all earned income up to $113,700.

Indeed, for most lower- and middle-income households, the payroll tax increase will most likely equal or exceed the value of the income tax savings. A household earning $50,000 in . . . → Read More: Taxes Are Going Up

A Useful Idiot

Paul Krugman:

So minting the [$1 trillion] coin would be undignified, but so what? At the same time, it would be economically harmless — and would both avoid catastrophic economic developments and help head off government by blackmail.

What we all hope, of course, is that the prospect of the coin or some equivalent . . . → Read More: A Useful Idiot

A Lack of Prudence

What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom.—Adam Smith, The Wealth of Nations

Here’s some nonsense on stilts:

Richard Feynman was once asked what he would pass on if the whole edifice of modern scientific knowledge had been lost, and all he . . . → Read More: A Lack of Prudence

It’s Not The Worst Plan In The World

The Seattle Times:

If President Obama wants to avoid an economic calamity next year, he could always show up at a news conference bearing two shiny platinum coins, each worth … $1 trillion.

That sounds wacky, but some economists and legal scholars have suggested that the “platinum coin option” is one way to defuse . . . → Read More: It’s Not The Worst Plan In The World

Porter Stansberry: Gold and Real Estate Are My Hedges for the Fiscal Cliff

With nary a glimmer of hope that economic sense will supplant political expedience, Stansberry & Associates Investment Research Founder Porter Stansberry expects rampant inflation to roar in once the cost of capital rises. How is he preparing himself? Stansberry tells The Gold Report he continues to buy and hold gold and also discusses how . . . → Read More: Porter Stansberry: Gold and Real Estate Are My Hedges for the Fiscal Cliff

Paul van Eeden on Why Gold is Overvalued

Many goldbugs like gold as a hedge against Federal Reserve policies and high inflation. Paul van Eeden, president of Cranberry Capital, says he does not fear high inflation due to Fed policies. Van Eeden is a different kind of goldbug and in this interview with The Gold Report, he explains how his proprietary . . . → Read More: Paul van Eeden on Why Gold is Overvalued

James West Sees Catalysts in the Energy Sector

As we head into the last quarter of the year, James West questions how important macroeconomic trends are for individual investors. But he does believe stock catalysts in the energy space are easier to understand than precious metals market forces. In this interview with The Energy Report, West updates us on some possible . . . → Read More: James West Sees Catalysts in the Energy Sector

When Greg McCoach Picks Mining Stocks, It’s Location, Location, Location

The looming financial meltdown will affect the global economy and the U.S. will not escape, says Greg McCoach. Whatever happens, the precious metals are bound to fly, as investors scramble for tangible cover. Mining stocks will be major beneficiaries of the soaring metals prices, but where mines are situated will be an important . . . → Read More: When Greg McCoach Picks Mining Stocks, It’s Location, Location, Location

Why Print Money?

Andrew Coyne:

They are probably right. It is telling that neither Obama nor his Republican opponent has offered much of a plan to spur the economy, at least in the short term. So far as anyone has any short-term impact on the economy, it is the Federal Reserve, and even it is limited in . . . → Read More: Why Print Money?