All Posts Tagged With: "Us Inflation Rate"

Fed Bailouts Could Cost Taxpayers $2.5 Trillion

Dom Rich says the Congressional Budget Office (CBO)’s estimates of the taxpayer losses from the bailout of Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) are implausibly conservative.

The real estate bubble of this decade was the biggest of any asset class in history. Rather than the CBO’s $25 billion figure, Dom says the real cost is at least $1.3 trillion, and could be as high as $2.5 trillion.

And this doesn’t even account for the inflationary consequences of rescuing Wall Street. The Fed is on a money printing binge session, and anyone holding dollars will be picking up the tab…

Short Tiffany & Co (TIF) on Gloomy Retail Outlook

Taipain Publishing’s Adam Lass says investors should be wary of luxury retailers that claim they will emerge unscathed from the current economic downturn.

Real incomes and real private spending are falling, inflation is ticking upwards and consumer confidence is in the gutter.

This makes Tiffany & Co. (NYSE:TIF) - with its overly optimistic earnings expectations for Christmas spending - ripe for shorting.

The 4 Best Securities to Hold in the Coming Global Recession

The International Monetary Fund (IMF) has downgraded world growth to 3.9% this year, from last month’s estimate of 4.1%. Next year’s outlook is also down - from 3.9% to 3.7%.

The Sovereign Society’s Eric Roseman predicts a far harsher global outlook. He says the world economy is staring down the barrel of the worst recession in 20 years.

This means it’s time to shift your focus to the securities that can protect your wealth from deflation. Eric says gold, high-quality Treasury bonds, non-financial A and AA corporate bonds and the U.S. dollar are your best bets…

Charles Delvalle Says Get Ready for Deflation in Asset Prices

Big banks don’t trust each other in the post-Bear Stearns market, and lending across the financial system is drying up.

This tighter credit environment is hitting money supply. Last month, money supply actually shrank - it grew at under the rate of inflation.

Charles Delvalle at Investor’s Daily Edge says this means investors should now expect deflation to hit asset prices.

This echoes Bill Bonner’s recent warnings about the risks of a coming deflationary slump in the U.S…

Real Inflation of 13.6% and Failing Euro Mean Gold Will Soar

If you own gold or are thinking of buying gold, David Galland’s latest article for The Daily Reckoning is a must-read.

Gold is starting to climb northwards from its nine-month low reached on August 15. But at just under $832 an ounce this morning in London trade, the yellow metal is still way off its March high of  $1,032.70.

Dave says two important events mean the recent setback in gold prices will not last long. The first of these is soaring inflation in the U.S. - which, if calculated by pre-Clinton metrics, is now running at 13.6%. The second is the failure of the euro as an alternative to the dollar…

Which ‘Flation Will Win - Inflation or Deflation?

The battle between the two ‘flations - inflation and deflation - is far from over says Adrian Ash in The Bullion Vault. Private investors fearing collateral damage might want to take cover. Gold bought near $800 an ounce might just provide some kind or armor…

The Real Rate of U.S. Inflation Is Now 13%

It was when “official government-approved” inflation figures were released that The Mogambo Guru really lost it last week. The official rate of inflation is now a staggering 5.6%. This is Terrible, Terrible News (TTN)…

And Then There’s This…Friday, August 22nd, 2008

Both gold and silver began rising unsteadily right from the time Globex trading began in the Far East on Thursday morning, but the party didn’t really get started until midway through the London session.

2 Currency Plays to Protect Yourself from Bush’s Bailouts

Most people know the largest economy and most widely held currency in the world are in trouble, says spy-turned-newsletter-editor Fitzroy McLean.

As Byron King said recently in Penny Sleuth, the Bush administration has presided over a massive expansion of government’s role in finance - a new era of bailouts.

These bailouts will have a disastrous long-term effect on the dollar. Fitzroy recommends two currency plays to best protect your portfolio from the buck’s ultimate devaluation…

Expect Feds to Print More Money to Stave Off Deflation

What should investors worry about more, inflation or deflation?

Wholesale prices (PPI) are rising at the fastest pace for almost three decades. But some analysts warn that the decline in asset and stock prices could signal the start of a severe bout of global deflation.

Dan Denning in The Daily Reckoning Australia says both inflation and deflation destroy value, albeit in different ways. But as long as central banks can print more money, worldwide deflation is unlikely.

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