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- 10-year U.S. treasury yields just touched 2.9%. This is a new high for the move. The rise in response to the CPI was delayed by the initial plunge in stock market futures. But now that stocks have recovered most of their losses, bonds are plunging.
- Since Dec. 12, the day before the Fed moved, gold climbed 5.7% to $1,314.36 an ounce, last week touching the highest level in three months and has climbed higher since. http://bit.ly/2CYWj9x
- The restaurant only accommodates eight diners per night. The tab generally runs between $500 and $600 per person. http://bit.ly/2v43CYv
- Trump changes tune on the economy: With Obama it’s a bubble, with Trump is a boom. https://t.co/Lq8kFnIu9z https://t.co/3bwDhAmWKs
- SEP Commentary "The Investment Game is not so much about holding a good Hand as playing a bad Hand well" published. http://bit.ly/1MY9KUc
- Hope springs eternal. After having initially forecast 2017 Q4 #GDP growth at 4.5%, only to see it come in at just 2.6% (likely to be revised lower next month), the Atlanta Fed's initial read on 2018 Q1 GDP is 4.2%. Let the GDP limbo begin.
- There's growing evidence we’re nearing a debt time bomb explosion. http://bit.ly/2rPtBjh
- The World Gold Council points out that in some ways, gold and cryptos are complementary assets. It highlighted the similarity in their supply dynamics. http://bit.ly/2ncfp1T
- @RonPaul, "It makes no sense to tax money" http://bit.ly/2sHH7Wc
- Systemic bias against small scale development
Friday, May 13, 2016
Deflationary spiral in a commodity based currency
Last time I posted here I was curious about the Austrian response to the [new deal](http://ift.tt/1WvpaWM) and you guys recommended FDR's Folly: How Roosevelt and His New Deal which was a great read. I'm still relatively new to Austrian economics so I was wondering what happens when a commodity based currency enters a deflationary spiral. People are obviously more inclined to sit in money (which will be worth more tomorrow) which drives demand down, and a result, unemployment up. I watched a video with a German economist saying that the shareholders should offset costs by lowering production costs. Unfortunately I can't find it but that method seems incredibly inefficient. I know 19th Century America went through extended periods of deflation and I was curious as to what happened to consumption and savings during that period Thanks in advance