Inflation

Wall Street has convinced itself that the Fed will soon engineer a "soft landing" by bringing down inflation without an accompanying recession. They need to rethink their beliefs.

Central bankers follow inflation "target" in their pursuit of "price stability." Not surprisingly, they usually miss their targets -- quite badly -- and we now are living one of those moments.

Twenty-six years ago, the debate was over whether or not the target inflation rate should be raised from zero to 2 percent. Now we're being told it should be 4 or 6 percent.

Unemployment remains low but for the wrong reasons. Low unemployment rates are not a sign that the economy is doing well.

Long before there was the infamous German inflation of 1923, the Reichsbank created the scenario of monetary debasement.

Wall Street has convinced itself that the Fed will soon engineer a "soft landing" by bringing down inflation without an accompanying recession. They need to rethink their beliefs.

Keynesian economists claim that deflation is as bad or worse than inflation. But deflation not only reverses inflation's bad effects but also allows new wealth creation.

Money supply growth slowed even more in October, and is now back to levels we last saw during the repo liquidity crunch of 2019, and in the days right before the 2007–09 recession. 

An upcoming recession likely will lead to falling asset prices. But these price decreases do not cause recessions, but rather are a result of them.

As inflation ravages the economy, easy money is disappearing, with political and legal consequences to follow.