Categories Finance

Economic Insights: Markets, Investing, Gold, and Inflation | Economic Prism Part 214

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            <p><a href="https://economicprism.com/welcome-to-life-after-the-end-of-the-world/"><img decoding="async" class="alignleft size-full wp-image-2253" title="Welcome to Life After the End of the World" alt="" src="https://economicprism.com/wp-content/uploads/2012/12/MayanPyramid.jpg" width="150" height="150"/></a>“It’s crucial to save the frog.” – Al Gore Jr., Nobel Prize Laureate.</p>

The Great Deceivers of Our Era

The unknowns in our lives can be quite disconcerting. People often spend substantial amounts of money seeking assurance from well-versed individuals who predict the future. The accuracy of their forecasts is secondary to their persuasive delivery.

Imagine a scenario where a civil engineer made as many errors in judgment as a weather forecaster, or where a carpenter was consistently as unreliable as a stockbroker. Such inaccuracies could lead to catastrophic outcomes—bridges crumbling and roofs collapsing just as a storm rolls in or a market takes a downturn.

In today’s society, central bankers have emerged as the great deceivers. Consider Fed Chairman Ben Bernanke, for example, who is directing the printing of $85 billion each month to support U.S. Treasury debt and the mortgage market.

According to Bernanke, these monetary strategies are in our best interest. He argues that the economy suffers from insufficient demand. His belief is that making credit more accessible will spark demand, thereby stimulating the economy and reducing unemployment rates. Continue reading

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            <p><a href="https://economicprism.com/breaking-down-a-biotech-winner/"><img decoding="async" class="alignleft size-full wp-image-885" title="Breaking Down a Biotech Winner" alt="" src="https://economicprism.com/wp-content/uploads/2011/12/Economy.gif" width="150" height="150"/></a>Breaking Down a Biotech Winner<br/>By Alex Daley, <a onclick="javascript:pageTracker._trackPageview('/outgoing/www.caseyresearch.com/go/bv9hE/GDO');" href="http://www.caseyresearch.com/go/bv9hE/GDO" target="_blank">Casey Extraordinary Technology </a></p>

Conventional cancer treatments generally rely on a harsh combination of surgery, radiation, and chemotherapy—often referred to as “slash, burn, and poison.” However, innovative treatments currently being developed in laboratories around the globe hold the promise of moving beyond these methods; there has been no other illness that has attracted as much research interest and funding in the field of modern biotechnology over the past thirty years.

Though I won’t delve into all those possible breakthroughs here, it’s worth noting that while many will likely succeed and enrich numerous investors over the coming decades, a considerable number will not succeed. Furthermore, even those that do may take years to deliver significant returns for their investors.

That said, one burgeoning company has developed a groundbreaking approach to cancer treatment that shows considerable promise. Featured in a recent edition of *Casey Extraordinary Technology*, this company has already yielded a remarkable 167 percent gain for its subscribers within a mere six-month span, suggesting that it may generate substantial profits for investors in the future. Continue reading

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            <p><a href="https://economicprism.com/blowing-gas/"><img decoding="async" class="alignleft size-full wp-image-2231" title="Blowing Gas" alt="" src="https://economicprism.com/wp-content/uploads/2012/12/MexicoCityDF.jpg" width="150" height="150"/></a>Times certainly evolve. A few years ago, individuals working the freeway off-ramps in Long Beach, California, were largely Mexican immigrants selling oranges and roses to commuters returning from their office jobs.</p>

Now, however, it’s common to see recent college graduates attempting to earn pocket change by strumming guitars. Sadly, it seems like a stroke of bad luck to graduate with substantial student loan debt just as a decades-long economic expansion ends. If the economic downturn persists, we may find more people resorting to unconventional and risky methods of earning income.

About a decade ago, during a visit to family in Mexico City, I witnessed some extraordinary street performances. At one stoplight, for example, a shirtless performer shockingly rolled around on broken glass laid out on the street, captivating onlookers. Continue reading

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            <p><a href="https://economicprism.com/the-malady-of-the-federal-reserve/"><img loading="lazy" decoding="async" class="alignleft size-full wp-image-1633" title="The Malady of the Federal Reserve" src="https://economicprism.com/wp-content/uploads/2012/06/FederalReserve.jpg" alt="" width="150" height="150"/></a>Today, Ben Bernanke and his colleagues at the Federal Reserve are convening to devise their next strategy for manipulating credit markets. Tomorrow, they will unveil their latest plans for adjusting the money supply and interest rates. As always, you can expect them to announce more money at lower costs.</p>

If only an increase in money supply equated to increased wealth, then we’d all be thriving. Since mid-2008, the Federal Reserve has added $2 trillion to its balance sheet and pushed the federal funds rate to near zero.

Regrettably, simply having more money does not guarantee greater wealth. In fact, it can sometimes lead to diminished wealth. The typical American family’s net worth dropped by 39 percent between 2007 and 2010. Why is that?

The truth is, the influx of money through cheaper credit does not inherently create wealth; rather, it leads to increased debt. More debt, especially when incurred for consumption purposes, translates to a decrease in wealth. Continue reading

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