Will stagflation cause the dollar to crash and be a bottomless pit when the next recession hits? That is what Peter Schiff is predicting. We look at where he is right and where he seems to be off the mark when it comes to the U.S. economy and a dollar collapse. In this episode you’ll learn: Is an economic recession overdue? Why running ongoing trade deficits leads to higher private sector debt balances. Why interest rates and savings is not too low. Why the U.S. … [Read more...]
190: How To Keep Up With Inflation
What investments are best for maintaining purchasing power relative to inflation. Using the pencil as an example, how inflationary and deflationary forces work together over decades to determine the price of product. Photo by Sy In this episode you’ll learn: What were some reasons for the great inflation during the 1970s. How productivity increases and new technology contribute to deflationary pressures. How quality improvements factors into inflation calculations. How … [Read more...]
162: Is Inflation A Good Thing?
What causes inflation and why do central banks allow it to persist instead of having a 0% inflation target. Photo by Aaron Burden In this episode you’ll learn: How inflation erodes purchasing power over time. How money creation by banks causes inflation. What is the non accelerating inflation rate of unemployment. How shorter-term rates influence longer-term rates. Why central banks have inflation targets. Show Notes Did Quantitative Easing Work? - Federal … [Read more...]
MNY127 Plus: TIPs, Individual Stocks and Investment Conditions
This week on Money For the Rest of Us Plus we start off by discussing a leading investment concern; what to do about rising asset class valuations driven by low interest rates. We also look at when inflation indexed bonds are attractive investments. Finally, we explore how to incorporate a portfolio of individual stocks into an asset allocation to determine an appropriate return. … [Read more...]
94: How Money Is Created and Destroyed
How federal governments allow banks to create the vast majority of the world's money supply, and why that erodes the value of money over time. Photo by Generation Grundeinkommen In this episode you'll learn: What is financial intermediation.What is fractional reserve banking.How banks create money through creative accounting.How banks decide how much money to create through their lending decisions.How central banks try to control the amount of lending.Why federal governments can … [Read more...]
93: Capitalism, Complexity and Cuba
Why uncertainty and failure is necessary for a functioning economy and why Cuba is embracing both in its struggle to reform its economy. Photo by J.D. Stein In this episode you'll learn: Why the Cuba economy is struggling.Why Cuba is experiencing inflation.What is Cuba's largest export.What Cuba is doing to reform its economy.Why you need uncertainty for a functioning economy.What are the qualities of a complex system . Show Notes In a reversal, Cuba tries price … [Read more...]
87: Is This Normal?
How long-term trends in inflation, stocks and climate changed are hidden by short-term countertrends, creeping normalcy and myriad moving parts. Photo by J.D. Stein In this episode you'll learn: How inflation leads to a decline in real wealth.Why it is difficult to detect inflation trends.What is creeping normalcy.What causes climate change.Why science is messy.What can individuals do to combat global warming. Show Notes Collapse by Jared Diamond Supermodels - … [Read more...]
2: What Causes Inflation and Deflation?
Inflation is caused when there is too much money flowing through the economy relative to the amount of goods and services being produced, leading to a jump in prices. Photo by runrun Inflation is similar to how athletes experience unpleasant side effects when they run faster than their aerobic capacity. When too much money chases capacity-constrained goods, services, and workers, it leads to a rise in overall prices. Conversely, deflation, or an overall decline in prices, can occur … [Read more...]
