The study of economics is characterized by the domino effect. This means that in the study of economics, one has to consider various variables and players in the economy that affect each other, however remote they are from each other, because of a series of relationships connecting each variable or player. Thus, the economic term called Inflation can be viewed in relation to other variables or factors in the economy.

In order to understand fully the concept of Inflation in relation to ... Read More

There is no doubt that Inflation is unfavorable to development. At some stage in times of inflation, both consumers and firms are adversely affected. In fact, Inflation can absolutely cause an expansion in the poverty incidence of a nation and indirectly cause elevated unemployment rates. There are several proposed methods in order to solve the challenge of inflation. Basically, these solutions require government intervention. Finished are the days when the prices and the tide of the economy ... Read More

Wanted to do a quick update on where I think we are in these great unchartered waters.  Today the market closed up 96 pts right at 8500 on the DOW.  It seems like things just want to keep going up for now.  I was thinking this morning that the fundamentals may not matter anymore and I am kind of on the fence with those thoughts.  What I mean is we keep hearing about recovery this and recovery that but what is it all really based on?  The market is up over 30% from the ... Read More

Something I have been convinced about for quite some time is that we are really not close to a bottom in housing.  I remember back in March of 2006 when subprime first reared it's ugly head in the mainstream media.  I remember Bernanke coming out and saying that the subprime crisis was unlikely to spill over into the broader market and economy.  He also said the cost for the whole fiasco would be somewhere in the neighborhood of $50-60 billion dollars.  As we all know that ... Read More

So for the last few weeks everywhere I turn I am hearing that we will not have to worry about Inflation for quite awhile.  I have heard from some pundits that we are looking at a couple of years before we need to worry.  Still others believe that the FED will be able to take away the punch bowl in time to stop Inflation from taking off.  I just do not believe that will happen.  I think the FED will be behind the curve as it always seems to be.  They will not risk rais ... Read More