Tag Archives: Inflation

The Future Of Currencies

October 12, 2012


In an earlier post I wrote about the likelihood of continued market volatility as asset prices veered back and forth between the effects of monetary stimulus and the deflationary forces unleashed by a generational deleveraging event. In this tug-of-war between the forces of inflation (money printing) and deflation (deleveraging) the dollar is the medium through which […]

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The Unintended Consequences Of Human Action

September 20, 2012


With QE3 the Federal Reserve has initiated another massive round of money printing, buying $40 billion worth of mortgage securities while continuing to reinvest its income from the securities  purchased during QE1 and QE2. In addition the Fed has changed the emphasis of its mandate, from targeting price stability to making itself responsible for employment, promising […]

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Pickled Onions and Thatched Cottages

July 26, 2012


I’m writing this while on vacation in England, in a beautiful thatched cottage in Devon, built in the early 1700’s. There’s no internet so it is easy to ignore unsettling news from the outside world, the Batman massacre, Eurozone concerns and Middle Eastern turmoil. The setting, gardens and décor are idyllic.  The cottage has seen witchcraft […]

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Platonic Dialogues For Our Times: Part I

June 7, 2012

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Inflacionatus: How on earth can you continue to hold on to your deflationary views Deflaticus? The monetary base has exploded, inflation is rising and while the dollar has not fallen over the last 12 months, it has not risen much either, as one would expect during a deflation. Deflaticus: The monetary base may have exploded, […]

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