Featured StoryForget about lost decades. Forecasts that we'll be turning Japanese couldn't be further from the truth.
It's simple, really. Deflation is not in the interest of anybody in power, so it's very unlikely to happen.
The U.S. Federal Reserve's policy move to target inflation last week just re-emphasizes this point.
That's not to say deflation is a bad thing for everybody.
For savers and those living on fixed incomes, deflation would be a very good thing...
Why Warren Buffett Is Buying – And You Should Be Too
Legendary investor Warren Buffett recently made news with his purchase of International Business Machines Corp. (NYSE: IBM), though I can't say I'm surprised.
Despite criticism that he's buying into a top-heavy market, that IBM is at a premium, and that he's losing his touch, chances are Buffett knows exactly what he's doing.
Helicopter Ben is at It Again: Four Ways to Protect Yourself From the Fed’s Next Flyover
The circus known as the debt-ceiling debate may have left town - at least for the time being - but there's still one sad clown left standing squarely in the center of the ring.
I'm talking about U.S. Federal Reserve Chairman Ben S. Bernanke - otherwise known as "Helicopter Ben."
Bernanke got the nickname "Helicopter Ben" from a speech in 2002, in which he announced that deflation was a real worry...
Profit From Inflation: These Six Stocks That Will Add Punch to Your Portfolio
If there's one skill you need to learn, it's how to profit from inflation.
Thanks to the cheap-money policies of Team Bernanke at the U.S. Federal Reserve, the escalating levels of global sovereign debt, and other recent developments in the world economy, it's clear that we're headed for a period of steeply rising prices - inflation. If you know how to navigate this tricky stretch, you'll be fine. But those who don't are going to...
What the Looming Inflation Tsunami Means for the U.S. Housing Market and Commodities
A few weeks ago, Money Morning Contributing Editor Martin Hutchinson warned readers about the looming inflation tsunami threatening the United States.
Easy money policies like those of the U.S. Federal Reserve and other central banks have helped raise prices in emerging markets, as well as the United States, and sent the
Core Inflation Numbers Will Allow the Fed to Stay the Course – For Now
Even though the cost of living in the United States jumped higher in December, the way the government calculates inflation will give the U.S. Federal Reserve enough cover to maintain its loose money policy.
The consumer price index (CPI) rose 0.5% in December, the largest increase in 18 months, the Labor Department reported Friday. About 80% of the increase was due to an 8.5% rise in the gasoline index, also the sharpest increase in 18 months. Food prices rose by 0.1% in December.
The CPI is the broadest of...
U.S. Inflation Set to Soar as the Country's Chief Export Boomerangs Back Home
While prices for food and energy have been rising, inflation in the United States has remained relatively subdued.
One common explanation for that phenomenon is that U.S. inflation has been "exported" to China and elsewhere through the U.S. Federal Reserve's monetary policy. And given the perennial U.S. balance of payments deficit, it's good to know the country has found something it can successfully export!
However, the bad news here is that inflation does not stay exported - and in 2011 it may boomerang back...
Buy, Sell or Hold: Brace for Inflation with Kraft Foods Inc. (NYSE: KFT)
Growing up in the 1970s, I remember seeing fears of food inflation affect the life around me.
My parents purchased a small farm and put in an
organic garden so that we would always have food. My mom was always canning food and my father was riding the tractor. They had grown up in the 1930s and remembered the key to surviving tough economic times was to be able to feed yourself when you needed to.
Today, we have a generation of fast food buyers. But the problem with that diet - besides its...
Question of the Week: U.S. Consumers Squeezed by Inflation, Worry About Middle Class Pinch
The U.S. Federal Reserve has made one thing very clear: It views deflation as public enemy No. 1, and it will do everything in its power to keep that ruinous downward spiral in prices from taking hold.
But is the U.S. central bank focused on the wrong threat? And if that's the case, are U.S. policymakers setting the stage for a consumer-crippling inflation spike?
While the Fed has announced more quantitative easing to pump more money into the U.S. economy - hoping that would encourage lending and spending - a...
Fed's "QE2" Could Fuel Inflation in U.S. & Deflation in Europe
The U. S. Federal Reserve's latest round of quantitative easing (QE2) may further escalate the currency war by producing a crippling bout of deflation in Europe and conversely, another period of inflation on the domestic front.
The diverse results are possible because further Fed purchases of debt are likely to re-ignite economic growth and increase prices in the United States, while a surging Euro will make it more difficult for European countries...