Watch The Money Supply

The money supply (M2) is growing again and at a very fast clip. This means three things: 1) The economy will not fall back into recession; 2) Asset markets are headed up, not down; 3) Inflation is going to pick up.



What growth in M2 does not necessarily imply: 1) a major increase in GDP growth; 2) any substantial improvement in employment levels.



So, watch for stagflation and watch for asset prices to move up.

Comments

Post a Comment

Popular posts from this blog

This Aint Nothing

"This Aint Nothing" goes the great country and western song of a few years back.  I was thinking about that song as the deadline passed for Congress to reach a budget deal.  What happens 15 years from now?  No vote can save us then.  Medicare will be out of money and social security will be bleeding as well.  Then what?  That's the real budget crisis. In a country choking on unaffordable entitlements, the Obama Adminstration has crammed down one more unfunded entitlement on a wary public.  This simply makes the clock tick faster toward America's impending insolvency. The US is on track to go broke.  Whatever happens now is irrelevant unless it tackles the entitlements.  Putting this off, even for a year or two, makes it almost impossible to fix and guarantees the country's eventual insolvency. So, why not fight now?  Shut down the government.  That's better than business as usual, which simply guarantees an eventual shutdown that no Congressional vote can then
Read more

Career Lessons from Breaking Bad

Image
AMC's Breaking Bad ended with a bang last Sunday, leaving viewers generally content and definitely shell shocked. Though the ride is over, we can finally look back at the series and reflect on how we can learn from both Heisenberg's victories and mistakes. How can a meth kingpin help you and your future careers? Here are some takeaways : 1. Be hard to replace   : Find a specific skill set and make sure you are good enough that nobody can quickly take your place. Whether it be modeling, analysis, writing, communication, or even a certain product with a 99.1% purity, having a specific niche or strength can ensure job security. Just try not to kill fellow associates to eliminate competition. 2. Associate with the right people : If you are the smartest person in the room, you're in the wrong room. Surround yourself with people who you believe can bring out the best in you. Doing business with a high school dropout and drug addict will certainly lead to complications in the fut
Read more

Exclusive Interview: 2011 8TV Hot Chef (美食型男) Jason Cha

Image
Dubbed as one of the most handsome guy among the participants of popular 8TV shows Hot Chef ( 美食型男 ), Jason emerged as the ultimate winner, not by his look, but his cooking skills. Since then, he became a familiar face in Malaysia. Did you recognize Jason shopping at Mid Valley lately? In order for us to understand more about him, below are some of the his personal details: Full Name            : Cha Kian Heng Age                      : 34 Hometown           : Ipoh, Perak Status                  : Married Hobby                  : Collecting Thai Amulets Favourite Foods : Italian Pizza with many many cheese Favourite Sports : Badminton Favourite Sportsman : Fernando Torres (football player of Spain and Chelsea currently) The Interview: Q: What makes you decided to join the 8TV's 2011 Hot Chef competition? I think the most important decisions normally associated with the most important people around us. Due to the encouragements from my family and girlfriend (now is my wife), I take
Read more