Inflation & Devaluation

The Very Brief Phenomenon Of The Gold Standard

by Contributor •  • Comments Off on The Very Brief Phenomenon Of The Gold Standard

By Dr. Bryan Taylor: Europe was on a bimetallic standard, not a Gold Standard, from the Middle Ages until World War I. Gold triumphed in the 19th century because bimetallism had failed. This should have been taken as a sign that the gold standard too would inevitably fail.

Draghi’s Bold Push For Creeping Defaults And Real Wage Cuts

by Wolf Richter •  • Comments Off on Draghi’s Bold Push For Creeping Defaults And Real Wage Cuts

There is nothing like a wealthy central bank chief admitting that he wants to, one, help governments default gradually on their debts; and two, cut the real wages of workers. An honesty the Fed never dared to exhibit when it inflicted waves of QE on American workers.

Coffee – The Craziest Chart Of The Year Already

by Wolf Richter •  • Comments Off on Coffee – The Craziest Chart Of The Year Already

I’m a coffee lover, and this is getting personal: our latte, espresso, or just plain good coffee is going to bite fiercely into our already mauled pocket book. In one crazy chart.

Mother Of All Currency Wars in One Chart: Dollar Vs. Swiss Franc

by Wolf Richter •  • Comments Off on Mother Of All Currency Wars in One Chart: Dollar Vs. Swiss Franc

The destruction of the dollar – so clearly visible against the Swiss Franc – took on a sudden virulent form in 1970. It has been going on just about all my life. And it’s still going on. When even the Swiss couldn’t handle it anymore, they too jumped into the currency war.

Hiding Inflation: People Get Bigger, Airline Seats Get Narrower

by Wolf Richter •  • Comments Off on Hiding Inflation: People Get Bigger, Airline Seats Get Narrower

Selling airline tickets to our increasingly pauperized consumers is an art. And hiding price increases is an even greater art. While there are people who don’t worry about the price as they luxuriate in first class, others aren’t so lucky. For them, the industry has a special treat: squeezing their hips.

The Exquisite Art Of Marketing To Pauperized Consumers

by Wolf Richter •  • Comments Off on The Exquisite Art Of Marketing To Pauperized Consumers

People in the upper income categories, those who don’t have to worry about the price of toilet paper, have seen their incomes rise over the years. The rest are in a downward spiral: median household income, adjusted for inflation, has dropped 7.8% since 2000. The lower end got hit the hardest. For these folks, tissue makers have a special strategy: desheeting.

Currency War Rattles Brazil, Wakes Up the People

by Wolf Richter •  • Comments Off on Currency War Rattles Brazil, Wakes Up the People

Fed Chairman Bernanke and his ilk refuse to see the connection. They’re too busy ogling inflation in the US that is suspiciously low. But China has its eyes riveted on the revolt in Brazil. Like all revolts, it’s about deep-seated issues and inequalities, but the spark that lit it – after inflation had made life too expensive – was an increase in bus fares.

Bank Of Japan Machinations Crash Into Reality

by Wolf Richter •  • Comments Off on Bank Of Japan Machinations Crash Into Reality

The Japanese stock market has become a case study of central-bank manipulations, and of what happens eventually as reality cannot be eliminated forever. What you hear is a giant hissing sound. What you get is capital destruction and wealth transfer.

Fed’s Fisher Hilariously Slams Fiscal-Policy Chaos, Slugs QE, And Throws In Funny Video Spoof of Congress

by Wolf Richter •  • Comments Off on Fed’s Fisher Hilariously Slams Fiscal-Policy Chaos, Slugs QE, And Throws In Funny Video Spoof of Congress

Dallas Fed President Richard Fisher is one of the funniest – and most disturbing – voices out there in the sea of equivocating central bankers. But this time, he outdid himself in the dreadfulness of his warning and the humor of his presentation.