Deflation Is Everywhere—If You Know Where To Look

By Keith Weiner – Re-Blogged From Gold Eagle

At a shopping mall recently, we observed an interesting deal at Sketchers. If you buy two pairs of shoes, the second is 30% off. Sketchers has long offered deals like this (sometimes 50% off). This is a sign of deflation.

Regular readers know to wait for the punchline.

Manufacturer Gives Away Its Margins

We do not refer merely to the fact that there is a discount. We are not simply arguing that Sketchers are sold cheaper—hence deflation. That is not our approach. Let’s look beneath the surface, and drill deeper.

Sketchers makes the sort of shoes that you wear frequently, especially for exercise. They are not made to last forever, and not haute couture that will be worn once every blue moon. If the customer likes the Sketchers styling and they fit well (e.g. for wide feet), then he will be back to buy the next pair in three or four months.

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Stocks’ Last Cheap Sector

By Adam Hamilton – Re-Blogged From Gold Eagle

The lofty stock markets suffered a sharp selloff this week that may prove a major inflection point.  There was one lone sector that bucked the heavy selling to surge in the carnage, the gold miners’ stocks.  They are the last cheap sector in these bubble-valued stock markets, long overlooked and neglected.  Wildly undervalued today, the gold stocks have great potential to soar dramatically even if stock markets keep weakening.

Just several weeks ago, the US stock markets hit new all-time record highs stoking universal euphoria.  The flagship S&P500 broad-market stock index (SPX) closed at 2930.8 in late September, extending its monstrous bull to 333.2% over 9.5 years.  That made for the 2nd-largest and 1st-longest in US stock-market history!  It also left these markets dangerously overvalued, literally trading at bubble valuations.

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Impact Of The National Debt On Our Retirements

By Daniel Amerman – Re-Blogged From http://www.Silver-Phoenix500.com

In this analysis we will take a look at something deeply personal – which is how the $20 trillion United States national debt may change the day-to-day quality of life for savers and retirees in the decades ahead. That is likely a somewhat unusual perspective for many savers and investors.

On the one hand, we have what are often thought of as abstract economic concepts – such as how large will the national debt be in 10 or 20 years? How will Federal Reserve actions to increase interest rates change future government deficits and debts?

On the other hand, we have something that is typically presented as being entirely different, which is individual financial planning. What are the savings and investment choices that we need to make today that will help determine what our standard of living may be in retirement 10, 20 or 30 years from now?

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Zero Percent Mortgages Debut Setting Up The Next Stage For This Stock Market Bull

By Sol Palha – Re-Blogged From http://www.Silver-Phoenix500.com

Economists stated that main trigger for the financial crisis of 2008 was the issuance of mortgages that did not require down payments.  The ease at which one could get mortgages in the past is what drove housing prices to unsustainable levels. Post-crisis all banks vowed to end the practice forever, or that is what they wanted everyone to believe.   When the credit markets froze, we openly stated that the 1st sign that banks were getting ready to lower the bar again would come in the form of Zero percent balance transfer offers that had all but vanished after 2008.  A few years after 2008, banks started to mail these offers out. Consequently now, everywhere you look you can find 0 % balance transfer offers ranging from 12 months to 18 months.  The next step after that would be for banks to lower the 20% down payment required to something much lower. Currently, Bank of America and a few other banks are offering 3% down mortgages.

Now Barclays Bank has become the first British bank to turn back the hands of time; it has started to issue 0% down Mortgages under a program called “family springboard”.  There is, however, one small difference. In this instance, a parent would put 10% of the down payment into an account. If payments are made in a timely fashion, this amount is returned in three years with interest.

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An Open Letter To The Banks

By Keirh Weiner – Re-Blogged From http://www.Silver-Phoenix500.com

Jamie Dimon, JP Morgan Chase

Brian T. Moynihan, Bank of America Michael Corbat, Citigroup

Gentlemen:

On Friday, I attended a digital money summit at the Consumer Electronics Show. I am writing to you to warn you about the disruption that is about to occur in banking. There are many startups (and larger companies too) that are gunning for you. Perhaps you have watched what Uber has done to the taxi business? Well, these guys are planning the same thing for the banking business.

Banks used to allow even a child with a $10 deposit to spread his risk across a large portfolio of loans. At the same time, banks made it possible for a corporate borrower to raise $10,000,000 from a large group of depositors. In short, the banking business is investment aggregation and risk management.

That business cannot be disrupted. The bigger it gets, the more difficult to displace. It’s like eBay, all the depositors come to the bank because that’s where they can earn interest. All the borrowers come, because that’s where they can get the money they need. The bigger the bank gets, at least in a free market under the gold standard, the safer it is for depositors.

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