Gold has all the potential to go unprecedentedly high. But silver will be gold on
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During bull markets, investors have a concise memory of previous bear markets. Such is why, throughout history, cycles repeat as lessons must get learned and relearned.
The coming new year will be fraught with risk due to the removal of central bank and government supports. This could very likely lead to the collapse of the most overvalued stock market in history.
Dec 20, 2021 - 11:11:34 PST
A poll from a North Carolina policy non-profit probing opinion on the causes of inflation found the most popular answer was President Joe Biden's policies.
A historical dive into the long relationship between monetary policy, interest rates, inflation and financial markets.
Dec 20, 2021 - 11:04:21 PST
A massive threat to the economy is the legislation called Build Back Better, BBB. It would explode an already bloated budget and damage future economic growth and opportunity. Will Congress bury President Biden’s Build Back Better bill now that its true costs have been revealed? Steve Forbes on what the Congressional Budget Office recently revealed about Biden’s BBB and how burying this bill could help the economy and thus the overvalued market.
If it looks like a duck, walks like one and quacks like a duck, it’s a duck. Inflation is rising and consumer spending power is falling. Those are clear warnings of slower growth and higher costs -- spelling out the dreaded STAGFLATION scenario that the Fed is pretty much powerless against, leaving risk assets in the cross hairs.
Russian nationals have bought a record amount of gold since 2014. They bought four tons of gold bullion and coins in the past nine months, which is around 8% more when compared to the previous year, the reports specified. Traditional gold investments have become very popular in other countries as well, with Americans having purchased 91.3 tons of the yellow metal in the past nine months (+79%), while in China and India gold buying has surged by 54% and 24% respectively
Gold prices are currently holding steady around the $1,800 handle as a shift in risk sentiment boosts demand for safe-haven assets.
Via QE the Fed's balance sheet has doubled in 2 years, but in dramatically different ways between treasuries and mortgage-backed securities.
Stocks Don’t Need More Alarm Bells, They’re Already Clanging But Here we Are: LeverageDec 20, 2021 - 08:09:07 PST
Stock market leverage, the big accelerator on the way up, and on the way down.
Dec 20, 2021 - 08:01:18 PST
Plus: The pragmatic approach to omicron is emerging, lumber prices are skyrocketing again, and more...
Dec 20, 2021 - 07:54:53 PST
While the Chinese Wuhan virus (aka, the Fauci Flu) has plagued the world, another Chinese “export” is also suffering what is known as contagion: China’s real estate sector. Real estate companies Evergrande, Kaisa, Shimao and Chinese Estates are falling like a rock today.
Dec 20, 2021 - 07:48:54 PST
I love how The Federal Reserve talking heads, the media, economists like Paul Krugman, all refer to inflation as “transitory” and excessive liquidity as “temporary.”
Dec 20, 2021 - 07:45:00 PST
I love listening to Fed talking heads (or Fear The Talking Fed). They mostly seem to acknowledge that inflation is a problem and that the excessive monetary stimulus should be reduced. But then I see the chart of The Fed’s balance sheet and The Fed’s reverse repo operations.
Taper? What taper?Last week, the Fed announced that it plans to speed up the pace of its asset purchase taper. But so far, this taper hasn't been very impressive. Between Dec. 8 and Dec. 15, the Fed added another 92.1 billion to its balance sheet, expanding it to a record $8.757 trillion.
Several months after the US Federal Reserve began describing the country’s inflation problem as “transitory”, the central bank is finally admitting that rapidly rising prices of goods and services are a serious threat to the American economy and its recovery from the coronavirus pandemic.
Dec 20, 2021 - 06:04:29 PST
According to Shadowstats figures, The Fed's CPI-U, is approaching 40 year high, as the cost of living spirals out of control. Another revived figure, based on the Fed's more accurate formula, is approaching 15% inflation, nearly a 70 year record!
The new projections would see interest rates rise to 0.75% by the end of next year, with another three increases slated for 2023 and two more in 2024, bringing the federal funds rate to 2.1% by the end of that year.
Last week’s What Really Caused Inflation letter generated an unusual number of questions and comments. That tells me I need to go a little deeper. We know inflation by the higher prices it generates, but exactly how it flows through the economy isn’t always obvious.
A major Turkish business association called on President Recep Tayyip Erdogan’s government to abandon its current economic policies, citing recent market turmoil as proof that the experimental model is bound to fail.