Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in
In the same category

The Last Hurrah for Inflation Hubris?

IMG Auteur
 
 
Published : March 10th, 2017
433 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
[titre article pour referencement]
0
Send
0
comment
Our Newsletter...
Category : Editorials

24hGold - The Last Hurrah for ...

RINF is the symbol for an ETF trading vehicle that tracks inflation expectations. This is of more than passing interest to me, since I’ve been a hard-core deflationist and written on the topic for more than 30 years. RINF has yet to break out on a long-term basis (see chart above), and I am extremely skeptical that it will. Incipiently deflationary forces arising from debt, and from the substitution of machines for workers, are vastly more powerful than any catalyst one could imagine for inflation. As such, those hitherto intractable engines of inflation — government, healthcare and college tuition — have hit a wall. Quite clearly, none of us can afford to pay more for those things than we are already paying. A surge in wages seems most unlikely to alter the equation.

Meanwhile, private pensions and the Social Security system are headed toward certain bankruptcy. This is one problem that cannot be monetized by having the Fed purchase Treasury debt, since it involves actual cash dollars that would get spent by recipients each month on real goods and services. Someone would have to pay for those things, and that someone would have to be working stiffs who, perforce, would be taxed to death. Nothing could be more deflationary than a collapsing pension system. Unfortunately for us all, it is inevitable. The only reason we are not as worried about it as we should be is that the financial psychopaths at the Fed have pumped up the stock market to assuage our fears.  To complete the delusion, our actuaries are hard at work factoring pension returns for the next 50 years as though the bull market in stocks will continue forever. It won’t, of course, and when it finally ends — which it will — the epiphany of our bankruptcy will come literally overnight.

Concerning RINF’s chart, it is inconclusive on the matter of whether an inflationary spiral awaits. I have given my reasons why I think this is nearly impossible.  However, a dead-cat bounce to the 31.34 target is not beyond the realm of possibility. If it happens, I would expect it to be the last hurrah for both inflation and Fed hubris. It might even prove to be a precise marker for the onset of a deflationary debt collapse that long ago became unavoidable. . If you don’t subscribe, click here for two weeks' free access to Rick's Picks, including daily, actionable 'touts', round-the-clock updates, impromptu tech analysis sessions online, and a chat room that draws experienced traders from around the world at all hours of the day and night.


|
Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Rick Ackerman is the editor of Rick’s Picks, a daily trading newsletter and intraday advisory packed with detailed strategies, fresh ideas and plain old horse sense.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Debate Over Electric Trucks: Let’s Get It On
25 AprJerry82
Thanks Mish, this was a very insightful and thought provoking piece. I've often heard concerns about the weight of these new electric trucks and th...
No, The Junior Mining Stocks Are Not About To Implode - Dave Kranzler
25 AprJerry82
Thank you Dave for this excellent article. I agree with your well thought out critiques that point to junior miners being just fine. Relying on tha...
Gold Bullion Erases $10 Bounce Despite French Election, N.Korea Ris...
25 AprJerry82
I don't know how much I'd trust the listed GLD holdings. I always found GLD's structure to be a bit strange. They so famously claim that they are 1...
The Story of Gold Money, Past, Present and Future, by Edwin Walter ...
18 AprJerry82
Thank you for this very thought provoking piece Nathan. I have not read any literature from Edwin Walter Kemmerer before but I am inclined to pick ...
Gold Prices Slip $10 After Breaking Downtrend as UK's May Seeks Bre...
18 AprSam Maher1
"That left the GLD gold ETF needing a 2017 high of 849 tonnes in bullion backing." I frequently see you make these claims on GLD's holding...
Bombs Away!
17 Aprprljr-1
James tribe owns trump.
Krunch Time for Korean Krackpot Despot, Kim Jong-Un: Missile Crisis...
17 Aprprljr1
Unfortunately the world is not run by Christians, well except for the useful idiot ones.
Krunch Time for Korean Krackpot Despot, Kim Jong-Un: Missile Crisis...
15 Aprkevthorne1
I read from this that it is the USA that is 'a threat to the entire world'. How many times have we heard this - 'country X is a threat to the w...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS