Apr 15 2014

Inflation is all around us if you know where to look: Spiking food costs, rising home prices and rents, and more expensive energy.

Inflation is accepted as a normal part of our economy similar to how we take it for granted that the sky is blue.  It is close to a religion where people simply believe that inflation is part of the economic fabric of our nation.  Yet inflation with no subsequent rise in wages is tantamount to […]

Apr 7 2014

Why you should fear inflation: The CPI understates the true nature of inflation. BLS only allocates less than 2 percent to tuition in CPI. Missing big on the biggest expense in housing.

Some people believe that inflation is simply a part of the normal economy like seeing the sunrise every day.  Over time prices will rise on everything, or so the argument goes.  I’m not sure if most dig into the question any deeper and question the nature of prices rising.  If we look at inflation over […]

Mar 27 2014

Can the young Atlas support the heavy burden of an aging population? 58 million Americans currently receiving Social Security Benefits. Over half of elderly beneficiaries receive 50 percent or more of their income from Social Security.

Social Security was never designed as a long-term retirement plan.  According to the Social Security Administration for elderly beneficiaries, 53 percent of married couples and 74 percent of unmarried persons receive 50 percent or more of their income from Social Security.  This is an incredibly high number that depend primarily on Social Security and also […]

Mar 15 2014

The big economies cannot avoid a soft default as they face their debt reckoning: U.S. and other central banks battle it out for artificially low interest rates on unsupportable levels of debt.

Would you lend money to someone that you knew would never pay you back?  The answer is, probably not unless you are okay with burning through hard earned cash.  The global central banks unfortunately have entered into terminal velocity when it comes to debt support.  The U.S. carries a stunning $17.51 trillion in total public […]

Feb 28 2014

Household debt first increase in 4 years largely driven by massive increases in student debt. Auto loans showed increase volume in sub-prime loans.

In a recent post we discussed how personal income growth is having tough go at the current economy.  However, with incomes largely stuck in the quicksand of a mediocre economy for the working class, we see that the elixir of spending is back at the table again.  Debt spending is making up for the lack […]

Feb 22 2014

Comparing the inflated cost of living today from 1950 to 2014: How declining purchasing power has hurt the middle class since 1950.

Inflation has a subtle eroding effect that impacts entire economies.  In the United States, we have been fortunate to have relatively stable rates of inflation for two generations.  Even in times of high inflation like the 1970s, people were able to adjust unlike places that experience uncontrolled inflation like Argentina is currently facing.  Also, wages […]

Feb 15 2014

When the housing market is owned by Fed banks: Federal Reserve went from holding zero in mortgage-backed securities to over $1.5 trillion.

There are significant consequences with the Fed continuing on course with Quantitative Easing.  On paper, it may seem that all is fine on the home front.  However, many regular Americans are finding it harder to purchase a home in spite of a low interest rate environment.  The Fed has created perverse incentives where big banks […]

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