One analyst says that we’re now feeling the consequences of ending the gold standard back in the 1970s. André Marques believes that the end of the gold standard has led to a lower standard of living, creating less purchasing power, more economic cycles, and a weaker economy.

Mises Institute/André Marques
Money Does Matter: The End of the Gold Standard Led to a Lower Standard of Living

On August 15, 1971, Richard Nixon announced that the US dollar (USD) would no longer be redeemable in gold. This was supposed to be temporary. And yet, 51 years later, here we are. The gold standard was gradually destroyed in the twentieth century. Now people are experiencing the consequences: less purchasing power, more economic cycles, and a weaker economy.

You can keep reading, here.

Seeking Alpha/Matt Egan
A Look At The Deflationary And Inflationary Forces Occurring Now

It’s a rather funny picture, but it’s the state of the world today. Incomes are simply not keeping up with the rate of inflation and we’ve all been getting sticker shocks on all fronts over the past 1.5 years now.

There has been too much emphasis I believe, on the inflation rate alone and not near enough emphasis on what really matters and that is the difference between inflation and the rate of rise in your weekly paycheck.

Normally, your weekly earnings rise faster than inflation. This is generally due to gains in productivity or aggregate input cost reduction.

Continue reading, here.

CNBC/Patti Domm
Powell is not likely to tell investors what they want to hear in Jackson Hole speech

Investors are looking for new guidance in Federal Reserve Chairman Jerome Powell’s Jackson Hole, Wyoming, speech Friday, but he could instead deliver the same inflation fighting message, just with a much tougher edge.

Powell is expected to emphasize that the central bank will use all the fire power it needs in the form of interest rate hikes to snuff out inflation. He is also likely to point out that after the Fed finishes raising rates, it will probably hold them there, contrary to market expectations that it will actually start to cut interest rates next year.

You can keep reading, here.

About the Author

60 Years Experience


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