Precious metals news

Note: The Federal Budget Fiscal Year starts in October and runs through September. Because most people think in calendar years, this analysis will analyze the year-end performance of the budget for 2021. This is NOT the true fiscal year. This analysis extends the budget summary released by SchiffGold already.
In 2021, tax revenues surged by an incredible 25% compared to 2020 and was up 22.8% over 2019 (pre-Covid). The surge in tax revenues was not enough to overcome a record $6.8T in spending, breaking the spending record set in 2020 by 1.6%. This led to a deficit of -$2.5T which was well shy of the record -$3.3T in 2020 but also the second-highest on record ever. The Fed was “kind” enough to monetize nearly all this spending, but the cost was record increases to the money supply leading to the highest inflation in 40 years.

In an economy where the Fed has lost every systematic tether to common sense, empirical evidence, and concern for financial stability, it’s worth beginning this first market comment of 2022 by recalling the ways we’ve adapted in order to navigate that environment.

Ever wonder why prices are rising so fast? One reason is that with rapidly rising energy prices under the Biden Administration, the costs are getting passed-through to consumers in the form of higher prices.

Armed with zero interest rate policy and the most aggressive monetary campaign in history, investors elevated the financial markets to heights only rarely seen in human history. Yet, despite record valuations, pandemics, warnings, and inflationary pressures, the “animal spirit” fostered by an undeniable “faith in the Federal Reserve” remain alive and well.

So, will The Fed's jawboning bring down inflation expectations?

The bank's CFO issued guidance Friday, saying he expected "headwinds" of higher expenses and moderating Wall Street revenue to cause returns to dip.

Historically trends favored some alleviation in inflationary pressure based on those factors, but now with oil back on the rise and other commodities like copper once again beginning to move up as the dollar weakens some. The significant risk to this economy is that inflation continues to push higher, ultimately pushing the US economy into a recession.

Thank the lord for the US government's handouts!?

Henry Kaufman is one of the rare Wall Street veterans who can authoritatively draw parallels between the inflation scare of the 1970s and today’s alarming run-up in prices. And he has zero confidence Chair Jerome Powell’s Federal Reserve is ready for the battle it now faces.

Government bond prices around the world have fallen since the start of this year as investors position themselves for central banks to raise interest rates and end large-scale asset purchases in a bid to contain the surge in inflation.

Government bond prices around the world have fallen since the start of this year, as investors position for central banks to lift interest rates and end large-scale asset purchases in a bid to contain surging inflation.

America’s recent inflation spike has prompted renewed interest in an idea that many economists and policy experts thought they had long ago left behind for good: price controls.

Every winter, the WEF polls its members on perceived risks and has just released the latest poll ahead of its virtual meeting next week. This shows that only 16 percent of Davos residents see the global outlook as “positive” or “optimistic”; the rest are “concerned” or “concerned.”

If there is anyone still confused why ESG, and the entire "green" movement is one giant, boiling cauldron of lies, hypocrisy and fraud, read on.

The move could signal tougher Wall Street regulations and could put greater focus on climate change and inequality.

If central banks start draining the money pool to stop an overspill buoying sky-high inflation, the assessment of just how much liquidity is 'excess' becomes critical to world markets.

Investors are pulling interest rates higher, which threatens to push buyers out of the housing market.

The Federal Reserve plan to shrink its balance sheet has big implications for the economy, interest rates and stock prices.

A Federal Reserve official warned that the central bank would have to move interest rates up more aggressively this year if inflation stays high through the first half of the year. “But if inflation falls back in the second half of the year, as many of us think it will…then you could actually pause and not even go the full three.”...

The Fed is making increasingly hawkish noises about inflation, which is being exacerbated by high demand underlying supply shortages. However, if prices cool down in the near term, the central bank may be persuaded to be less aggressive on tightening. Unfortunately, all available evidence suggests that’s unlikely to happen