In the scenic town of Jackson Hole, Wyoming, a curious group of individuals gathers, holding onto some unconventional beliefs. They operate under the impression that they can dictate the value of the economy’s most vital component—its currency—more effectively than the market itself. They believe that by artificially lowering the cost of money, they can encourage consumers to spend beyond their means on unnecessary goods and services.
This notion may strike you as ludicrous, yet it stands as a primary goal of contemporary monetary policy. However, that’s only part of the story…
When commercial banks opt not to distribute all the accessible credit through loans to individuals and businesses, the central banks’ aspirations to stimulate the economy falter. This is when fiscal policies step in to fill the void. In this scenario, government economists maintain that they can invigorate the economy by pouring vast sums of money—money they don’t actually possess—into programs that may not be necessary.
To finance the initiatives they cannot afford, the government borrows from the central bank. Continue reading
Every day unfolds new revelations. Whether welcomed or not, the barrage of information continues to grow, much like the excess of Federal Reserve notes accumulating in foreign accounts. Last week was no exception—numerous significant discoveries came to light…
For instance, Samsung was found guilty of infringing Apple’s patents with its mobile devices. Additionally, Mitt Romney announced he would replace Federal Reserve Chairman Ben Bernanke if he were elected President. On top of that, scandalous photos of Good Time Harry in Sin City made headlines online. But there’s more…
The September issue of National Geographic noted, “Rome’s border walls marked the beginning of its decline.” Furthermore, researchers at Columbia University have concluded that the Mayan Empire’s fall was likely due to droughts affecting their corn crops. Can you believe it?
At the Economic Prism, we remain uncertain about the connections among these observations. However, we suspect that somehow they are intertwined. Drawing connections requires creativity and a touch of imagination. Correlations are seldom straightforward and often dynamic. Continue reading
The Only Way to Win with Gold Stocks
By David Galland, Casey Research
Buddha Investing
While I have perused several works on Buddha’s life and teachings, I wouldn’t claim to be an expert on his philosophy.
Crucially, I avoided the term “religion,” because Buddha himself denied any supernatural abilities and urged his followers not to worship him posthumously.
However, shortly after his passing some 2,500 years ago, the notion of deification emerged—though many Buddhists wouldn’t categorize it as such.
Nonetheless, there are facets of Buddhist practice that I find beneficial in our fast-paced world—practices that don’t require donning robes or avoiding pestering flies.
For example, I enjoy meditating occasionally.
Nothing overly complex—just ten to fifteen minutes of quiet breathing to help calm the mind.
I also find great wisdom in the discipline of Zen archers, who aim to quiet their minds of all distractions except for the act of releasing the arrow toward the target. Continue reading
The stock market is currently experiencing a six-week winning streak. In fact, from June 4 to the previous Friday, the DOW has risen by 9.7 percent. Can you believe it?
We anticipated a market crash this summer akin to Charlie Sheen spiraling after a weekend party. Instead, we have witnessed a remarkable rally, reminiscent of a heatwave sweeping through the Great Plains. Notable stocks like Home Depot, PepsiCo, Chevron, 3M Co, Google, and 42 others from the S&P 500 have recently reached their highest levels in a year.
If this momentum continues, a plethora of outcomes could emerge. In fact, the S&P 500 is just a hair’s breadth away from surpassing its April high of 1,419.04 and achieving a new four-year peak. At this rate, it won’t be long before the S&P 500 eclipses its record high of 1,565 from October 2007.
Ryan Detrick from Schaeffer’s Investment Research believes that stocks will keep rising for two main reasons: “First, the price action remains constructive; and second, overall expectations are still too low.”
We remain puzzled by what Detrick means by “the price action continues to be constructive.” Continue reading
In today’s rapidly changing landscape, perception and understanding of economic principles are critical. As various incidents unfold and undeniable patterns emerge, we find ourselves grappling with new realities that affect our choices and outlooks.
Through exploring themes from monetary policy to historical insights and investment strategies, we uncover the intricate connections that define our economic environment. In conclusion, it is clear that navigating these complexities requires diligence, creativity, and a willingness to consider the interconnectedness of our past, present, and future decisions.
