Economic Insights: Markets, Investing, and Inflation | Economic Prism Part 126

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        <a href="https://economicprism.com/yarns-mysteries-and-the-cpi/">
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        This week revealed several ambiguous economic indicators, particularly highlighted by the Labor Department’s 
        <a onclick="javascript:pageTracker._trackPageview('/outgoing/www.bls.gov/cpi/cpid1607.pdf');" href="http://www.bls.gov/cpi/cpid1607.pdf">July consumer price index (CPI)</a> report. The government data indicates that, overall, consumer prices remained unchanged for the month.
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        Energy costs saw a decline, food prices stayed stable, while a slight increase was noted in other items. Consequently, when the official data analysts combined these factors, the gains offset the losses, landing the reported CPI at a flat 0.0 percent.
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        While this figure is presented scientifically, it is noteworthy that independent researchers could replicate it precisely without any need for guesswork or adjustments. Every seasonal modification and hedonic regression estimate would align with absolute accuracy.
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        But seriously, what does a CPI reading of 0.0 signify? What insights can we draw from it, and how can we leverage this information for our own benefit?
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        Is it time to sell treasuries and invest in gold? Should we consider accumulating pre-1965 junk silver coins? 
        <a href="https://economicprism.com/yarns-mysteries-and-the-cpi/#more-5126" class="more-link">Continue reading <span class="meta-nav">→</span></a>
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        <a href="https://economicprism.com/the-great-stock-market-swindle/">
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        Identifying and addressing market gaps is a pathway to entrepreneurial success. Tapping into unmet consumer needs can yield substantial profits. However, without a distinct competitive edge, this advantage often becomes commoditized, leading to declining profit margins.
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        Yet, pinpointing and fulfilling gaps in the market is more challenging than it seems. Even successful entrepreneurs experience more failures than triumphs. Furthermore, success in one venture does not guarantee success in another.
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        Anyone who has taken a product from its initial concept to market knows how complex it is to turn a profit. For each successful idea, there are numerous failures. Ultimately, the only way to distinguish between a profit-generating concept and a disastrous one is through trial and error.
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        Success and failure provide invaluable feedback. They offer insights, whether through profit or loss, to businesspeople and investors. What strategies are effective? What is not working? What modifications can be implemented to secure a profit? 
        <a href="https://economicprism.com/the-great-stock-market-swindle/#more-5117" class="more-link">Continue reading <span class="meta-nav">→</span></a>
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        <a href="https://economicprism.com/laurence-kotlikoff-for-president/">
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        The Department of Commerce reported that the U.S. gross domestic product (GDP) experienced an annual growth rate of 1.2 percent in the second quarter of 2016. Unfortunately, this figure does not reflect the vigorous economic activity needed to alleviate the national debt. Instead, as growth stagnates, deficits are on the rise.
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        In the fiscal year 2015, the U.S. budget deficit was approximately $439 billion. For the fiscal year 2016, the federal government is expected to incur a deficit of about $616 billion. This increase of roughly $177 billion represents about a 40 percent rise from the previous year.
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        The national debt currently exceeds 100 percent of GDP. Clearly, a 1.2 percent growth rate is insufficient to reduce the debt. In fact, such growth, combined with a projected $616 billion deficit, will exacerbate the debt-to-GDP ratio.
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        As it stands, neither Hillary Clinton nor Donald Trump appears to be discussing the United States' debt crisis. Moreover, both of their economic proposals include plans for substantial spending.
        <a href="https://economicprism.com/laurence-kotlikoff-for-president/#more-5108" class="more-link">Continue reading <span class="meta-nav">→</span></a>
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        <a href="https://economicprism.com/visions-of-tomorrow-from-the-permanently-high-plateau">
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        A saying goes, “bull markets don’t die of old age.” This phrase likely originated in a time and context similar to today, amidst a lengthy bull market where stock values had seemingly detached from the actual assets and earnings of the companies they represent.
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        This expression was perhaps used to justify the rationale behind why stock prices should continue to rise. Honestly, it’s puzzling why anyone would endorse such an idea. But it might reassure the person expressing it about their investments and perceived wisdom.
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        Indeed, the current aging bull market has become irrational. Who in their right mind would invest their hard-earned money in a business that offers only $1 in earnings for every $26 invested? Aside from Swiss or Japanese bonds, or lottery tickets, it's tough to find a less appealing long-term investment. Can you? 
        <a href="https://economicprism.com/visions-of-tomorrow-from-the-permanently-high-plateau/#more-5095" class="more-link">Continue reading <span class="meta-nav">→</span></a>
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