Other analysts are more wary of the administration being concerned about the cost of producing pennies in the first place. “The fact that the government can no longer afford to mint token coins economically using copper is a sure sign Read more…
“The deficit problem is a much bigger problem for China than for the U.S.,” WB Advisors managing director Albert Lu told TheDC. Read more: https://dailycaller.com/2012/02/10/us-china-trade-deficit-now-largest-in-world-histor“y/#ixzz1mOMuIWXF
Other threats include unexpected illness or disability; early job loss; inflation: rates higher than 2-4% could prove problematic; extraordinary low fixed-income yields that penalize savers; rising tax rates as governments attempt to close fiscal deficits, and stagnant real estate prices Read more…
Time to panic?
The good news is that deflation is not the most likely outcome of the current economic environment.
That deflation worries are hanging over the economy at all is the bad news.
“When an economy experiences deflation, the purchasing strength of its monetary unit, the dollar in our case, increases, meaning the prices of all goods — including labor — experience downward pressure,” says Albert Lu, principal at The Woodlands Bullion Company in The Woodlands, Texas.
The purpose of this inflation is to serve as a tax by taking away the value (rather than the actual dollars) of all the money we hold. This is, however, one tax we can fight against, according to Albert Lu of Woodlands Bullion, a leading authority on precious metals and a contributor to the Price of Business radio show. Lu has stated many times that Americans can reduce their “monetary tax” burden with every precious metal purchase they make.