The Jubilee

  • A Krainer
  • Bookmark and Share
  • August 2017
    M T W T F S S
    « Nov    
     123456
    78910111213
    14151617181920
    21222324252627
    28293031  

Archive for the ‘Inflation’ Category

Stimulating economic growth (QE2) didn’t work. Now what?

Posted by Alex Krainer on May 26, 2011

In December, I asserted that we’re inevitably heading into a prolonged period of high inflation. I also asserted that stimulus spending won’t reignite economic growth because we’ve simply passed the point where marginal productivity of debt has turned negative. Namely, each Dollar of new debt generates negative economic growth.

Five months and nearly $600 billion later, we’re nearing the end of the Federal Reserve’s second round of quantitative easing, and the results – even with various government agencies sloppy book cooking – are dismal: Read the rest of this entry »

Posted in Economic imbalances, Inflation, Politics | Leave a Comment »

About Bernanke’s 100% confidence…

Posted by Alex Krainer on December 17, 2010

On 5th December 2010, Fed Chairman Ben Bernanke gave an interview to 60 minutes. The whole thing seemed like a choreographed show, but this exchange with 60 minutes’ interviewer Scott Pelley took me aback:

Scott Pelley: “You have what degree of confidence in your ability to control this?”
Bernanke: “One hundred percent.” Read the rest of this entry »

Posted in Economic imbalances, Forecasting, Inflation, Money & investing, Politics, Risk management | Leave a Comment »

Inflation might decimate your wealth

Posted by Alex Krainer on December 14, 2010

In February this year, we wrote that the sovereign debt crisis, pervasive in the developed world, was “certain to lead at some point to a prolonged period of inflation.” We are now in the early stages of that period and an acceleration of inflation is now virtually certain. Unless investors move aggressively to protect their wealth, they are likely to lose 50% or more of their wealth’s purchasing power in the coming years. Read the rest of this entry »

Posted in Economic imbalances, Hedging, Inflation, Money & investing, Politics, Risk management | 2 Comments »