by Shae Smith on May 19, 2010
As Kris sets off to work on the next issue of Australian Small-Cap Investigator, I’ve got to be honest, I was scratching my head this morning wondering what to write about.
I thought about tackling property (again), but I’ve only just emptied the Money Morning mailbag from yesterday and so didn’t want to create more work for myself by opening that can of worms.
Then I remembered I went out to dinner recently for my birthday [Ed note: That's the seventh time you've mentioned it today and it's not even lunchtime!]. During the course of the evening, work became a brief discussion.
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by Adrian Ash on March 10, 2010
“Just allow it…just admit it. It doesn’t matter where the inflation comes from. Just let it stay…”
SLASHING the Bank of England’s base interest rate to an historic low of 0.5% was supposed to “rebalance” the economy…tipping it away from galloping consumption towards an export-led recovery.
But all that the Pound’s slump since rates began sinking in March 2008 has done so far, however, is gift a 50% gain to UK gold owners.
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by Adrian Ash on March 3, 2010
How long will people choose to hold any wealth in cash given it’s losing value thanks to negative real rates of interest…?
PEOPLE don’t always do what policy-makers expect or demand of them. And a good job, too.
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by Adrian Ash on February 12, 2010
So, who gets to play Lehmans in this comedic repeat…?
ISN’T GREECE marvellous?
Paying income tax, or any kind of tax it would seem, has been entirely optional. Which should have powered its economy like 1960s’ Hong Kong.
But public spending, however, accounts for 40% of GDP. So who financed that spending if so few people paid?
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by Adrian Ash on January 20, 2010
Well, this is a pretty pass. Deflation in all things except inflation…
THEY WERE SUPPOSED to avert depression. The Bank of England continues to tout their “success”.
But it looks like the best that money-printing and zero rates might now deliver is ’70s-style stagflation, plus ’30s-style wealth destruction and a glacé cherry on top.
Giving Britain its “stag” – as in stagnation – are economic output, wages, capital investment, real estate prices and now, perhaps, a return of the bear market in London shares. Whether or not GDP shows an uptick for the end of 2009, this is the deepest British recession since 1931. Business investment sank to a 6-year low on the last quarterly data, and the number of people out of work for 12 months or more has risen by two-thirds since Northern Rock was bailed out, breaking the dam of bail-outs worldwide in late 2007.
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