Gold has all the potential to go unprecedentedly high. But silver will be gold on
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On Wednesday, the Federal Reserve’s Federal Open Market Committee voted to continue with a target federal funds rate of 0.25 percent, and to continue with large-scale asset purchases.
Governments Are Failing at Their Most Basic Duties—While Promising Free StuffJun 21, 2021 - 13:14:18 PDT
Three city blocks were systematically burned to the ground as hundreds of the local police stood by and viewed the violence. They were obeying orders not to harm the arsonists. The National Guard was called, adding more armed watchers.
Nixon's decision untethering the dollar from gold and releasing it from the promise dollars could be redeemed in gold, this resulted in opening the floodgates and allowed credit to explode from $1.7 trillion to $65.5 trillion at the end of 2015.
It’s worth pointing out that the national debt hasn’t always been this large. Looking back 150 years, we can see that its size relative to GDP has fluctuated greatly, hitting multiple peaks and troughs. These movements generally correspond with events such as wars and recessions.
The IRS has issued almost 167 million payments in the third round of direct stimulus aid, with another 1.8 million people last week receiving the $1,400 checks. But some lawmakers are pushing for a fourth round of stimulus aid that would effectively send recurring payments until the pandemic ends.
A survey now finds “central bank policy error” is the third biggest risk to the market, behind only higher-than-expected inflation and bond yields, and new variants to the coronavirus that bypass COVID-19 vaccines. The Deutsche Bank survey of more than 400 participants found the percent flagging central bank mistakes as a risk...
Japan is a microcosm of what the U.S. will face in coming years as the “3-D’s” of debt, deflation, and the inevitability of demographics continue to widen the wealth gap.
That will mean some prices continue to rise but others, especially where there is speculative excess involved (residential property?), experiencing a deflation like lumber.
Gold climbed higher amid investor buying following the biggest weekly decline in 15 months.Prices slumped to the lowest since April after policy makers at the Federal Reserve brought forward their expectations for when monetary tightening would start. That prompted exchange-traded funds to add the most gold in three months on Friday...
(Bloomberg) -- Money markets are drowning in cash but JPMorgan Chase & Co. strategists still see the possibility of the usual year-end funding stress.A stabilization in repurchase rates thanks to lower intraday volatility is one sign markets are normalizing, a team including Joshua Younger wrote in a note Friday. Meanwhile, there’s no obvious consensus on how...
1960 was supposed to have been a fantastic year. The world was largely at peace for the first time in decades and had fully recovered from the influenza pandemic that had broken out in the late 1950s.
After months of diminishing volatility that left the dollar almost immune to Federal Reserve talk and data surprises, the world’s deepest and most liquid market is back to scrutinizing both -- and just in time for one of the busiest weeks of the year.St. Louis Fed President James Bullard, Dallas Fed President Robert Kaplan and New York Fed President...
Inflation is on the rise, hitting some of the highest levels seen since the early 1980s. Back then, the Federal Reserve’s Paul Volcker killed off rampant price rises, hitting the economy hard initially, but ushering in decades of repeated rallies in stocks and bonds. If today’s post Covid-19 pandemic inflation proves sticky, will it be like the years before Volcker, or could it be more like the happier growth that followed World War II? These periods hold lessons about how financial markets might perform.
For more than six weeks, Taiwanese military officials wondered where the Chinese fighter jets had gone. During May, only four entered the island’s air defense identification zone. In the first half of this month, there were raids in just four days and a nine-day stretch of no activity, compared to a previous pattern of up to 20 raids a month.
China’s Central Bank Urges Alipay and Banks To Crack Down on Crypto SpeculationJun 21, 2021 - 11:00:46 PDT
The People's Bank of China said it summoned payments firm Alipay and several major lenders to tell them they must not provide crypto-related services.
There is a zero to a negative multiplier of debt on economic growth. The recent spending spree of the Government ensures slower economic growth.
The diminishing returns of stimulus plans are very evident. Artificially boosting GDP with large government spending and monetized debt generates a short-term sugar-high that is rapidly followed by a sugar-low. The alleged positive effects of a $1 trillion stimulus plan fade shortly after three months. I recently had a conversation with Judy Shelton where she...
What Powell Also Said at the Press Conference: “Hawkish” Nuances from the FedJun 21, 2021 - 09:30:31 PDT
Fed Chair Jerome Powell lobbed some choice nuggets in his press conference on June 16 after the FOMC meeting, some of which I dragged into the foreground when I discussed the FOMC’s decisions that then jostled the markets. The others I left sitting there, stewing in their juices, because they weren’t directly relevant to the FOMC’s decisions, including what ...
Is This Inflation Temporary? My Thoughts on the Biggest Mess I’ve Seen in DecadesJun 21, 2021 - 09:28:38 PDT
Ah yes, and you’ll hear the first tidbit about the soon-to-be-infamous WOLF STREET beer-mug shortage.
The market threw some of its toys out of the wagon last week. Let’s look at. The yield curve has become dramatically shallower as the market adjusts to the Fed’s new interest rate position (all data that follows is from Bloomberg):