Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Finance expert Dr. Robert Haugen, predicts 500% inflation this year

Monday, July 18, 2011

amb
Dr. Robert Haugen
From Precy Dumlao, Opalesque Asia:

Dr. Robert Haugen, who was ranked as the 17th most prolific researcher in the history of finance worldwide, has recently warned of an unprecedented increase in the money supply that will result to a major financial disaster "SOON".

Haugen, who has written 15 books on the stock market and has been published collectively in 7 languages, and who is the discoverer of the Low Volatility Anomaly and the inventor of the Expected Return Factor Model, said that the money supply (currency plus bank reserves) has more than tripled, from $800bn to $2.7tln in just two years. He warned that the trend shows an upward arrow.

"Nothing has come anywhere close to this policy since the inception of the Federal Reserve," he said in a statement.

He pointed to the U.S. government policy of Quantitative Easing QE1 and QE2 for the $1.9tln rise in the money supply. "This enormous heap of money is essentially in bank vaults and it may be OK if it stays there, but the idea is to incent banks to lend. If and when banks actually lend there is a multiplier effect that results from the fact that the current reserve requirement is 10%, so banks can lend ten times their reserve. $2.7tln can turn into $27tln. Before you know it, were talking about real money. For perspective, the debt ceiling that we are all agonizing over is $14tln, about half the potential $27tln that could spill into the economy. And it could be even more ......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1