Inflation, at the very core, is the rate at which the price level in an economy increases. It can also be called the rate at which the purchasing power of individuals is falling: as prices increase, less and less can be bought with each dollar. There are many factors that can cause inflation to increase, but two of the major ones are excessive money supply and reckless government spending.

Inflation is not a problem if it is low; but, once it escalates, it causes severe economic problems. To control inflation, central banks use different tools such as interest rates. In the U.S., the Federal Reserve targets inflation rate in the U.S. economy to be between two percent and three percent.

The inflation figures in the U.S. are reported by the Bureau of Labor Statistics (BLS) each month, for the previous month.

Since the financial crisis of 2008 and 2009, inflation in the U.S. economy has been very low. In 2013, prices increased by 1.5%, which was well below the Federal Reserve’s target. But, over the past few years, the central bank has printed a significant amount of money to boost the economy. The money supply, as a result, has substantially increased. In addition to this, the U.S. government has also spent, continuing to incur budget deficits year-over-year. Going forward, this could mean soaring inflation.

Marc Faber: The Stock Market Bubble Is Out of Control

By Wednesday, October 7, 2015
Stock_Market_BubbleInflation is Rampant, Says Marc Faber Not only did inflation create a massive stock market bubble, but the coming hyperinflation will decimate the purchasing power of ordinary Americans. Paper money is bleeding value and investors will soon be clamouring for the safety of gold and silver. At least, that’s according to well-known.

U.S. Economic Outlook for 2015: Economy Strong but Markets Unstable

By Wednesday, September 23, 2015
Economic Picture for 2015 Not RosyStrong Economic Data Points to Growth in 2015? As 2014 winds down, many investors are wondering what the economic outlook for 2015 will be. If you look at the U.S. economic data that’s been trickling in, 2015 looks like it could be a very strong year. The U.S. announced strong third-quarter gross domestic product (GDP) growth of 3.9%..

Official Inflation Figures Are Misleading; Prices up 10% This Year

By Wednesday, September 16, 2015
inflationLet’s face it: the government’s skewed data about consumer prices doesn’t tell the real story when it comes to inflation. In fact, according to government statistics, prices in the U.S. economy increased by only 0.6% in the first seven months of 2015. (Source: Bureau of Labor Statistics, last accessed September 11, 2015.) But.

Economic Collapse: Venezuela’s Currency is So Worthless, People Are Using Money as Napkins

By Friday, August 21, 2015
Economic-CollapseSoaring inflation in Venezuela has left the country’s currency virtually worthless, leaving the troubled nation on the verge of economic collapse. But while economists try to describe the nation’s turmoil with facts and statistics, the story of Venezuela’s struggles was perhaps summed up best in a Reddit forum. On Monday,.

Jim Rickards: We Are in a Global Depression

By Saturday, August 15, 2015
China Stock Market CrashChina’s currency devaluation is a confirmation that the world’s second-largest economy could be on the verge of an economic collapse. At least, that’s the opinion of renowned analyst Jim Rickards. “There’s no such thing as a one-time thing in currency wars,” he told Amanda Lang on CBC. “It won’t be their last move.”.

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