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Central Banks Are Fighting the Wrong War – The West’s Money Supply Is Already CrashingFeb 8, 2023 - 05:28:08 PST
Monetary tightening is like pulling a brick across a rough table with a piece of elastic. Central banks tug and tug: nothing happens. They tug again: the brick leaps off the surface into their faces.
Kuroda Leaves Wild Distorted Bond Market for Next BOJ Governor: In ChartsFeb 8, 2023 - 05:27:03 PST
The Bank of Japan Governor Haruhiko Kuroda is in the twilight of his 10-year tenure. His successor inherits a bond market that is larger than ever, but riddled with wild distortions. The lingering question for Japan is how the central bank can normalize policy.
India’s central bank slowed the pace of interest-rate increases while keeping the door open for further policy tightening to curb core inflation, an approach that aligns with the thinking of peers in the US and Australia.
Despite some high-octane hawkishness from his colleagues - several more of whom are speaking on Wednesday - Powell seemed to reassure investors with some basic honesty about the peculiarity of this business cycle - and the dangers of extrapolating too much from a few data points or overcommitting on future policy moves. "This cycle is different from other cycles...it has just confounded all sorts of attempts to predict," Powell admitted.
U.S. stock futures slipped in early trading Wednesday as another bout of earnings results hit traders' desks while the previous sessions rally lost momentum.
If you have any skepticism of government narratives at all, you have to question last week's non-farm payroll report from the Bureau of Labor Statistics. Given the number of layoffs and the general slowing of the economy, the notion that 517,000 jobs were created in January just doesn't make sense.Turns out that your skepticism is warranted.
Despite hitting the debt ceiling, the US Treasury managed to add $35 billion in new debt during January. The Treasury has employed extraordinary measures, including exchanging Non-Marketable (e.g., Government employee retirement funds) and other forms of debt for short-term Bills. The balance on Bills grew by $241 billion which was the largest single-month growth since at least January 2021.
Consumer Debt Increase Slows in December But Americans Still Relying on Credit CardsFebruary 8, 2023
Consumer debt grew at a slower pace in December, but Americans continued to rely heavily on credit cards to keep up with high price inflation.
The mainstream seems more and more convinced that the Federal Reserve can bring inflation back down to 2% without creating any significant problems in the economy. After the February FOMC meeting, Fed chair Jerome Powell even suggested that the economy would avoid dipping into a recession. But in an interview on Fox Business with Liz Claman, Peter Schiff argued that the Fed won't beat inflation or get a soft landing. He said the looming economic slowdown will fuel the inflation fire.
WORLD'S LARGEST SILVER MINER SUFFERING FROM FALLING EROI: Fresnillo Costs Explode While Profits Decline Due To Falling EROIFebruary 8, 2023
The World's Largest Silver Mining Company suffers from the Falling EROI - Energy Returned On Investment as its costs explode while profits decline. Unfortunately, the same is taking place throughout the entire mining industry and global supply chain. Numbers don't lie...
This de-dollarisation and general appetite for gold should ensure another strong year of official sector gold buying.
Central to understanding gold will be movements in the US dollar – and we’re mildly bearish about the dollar, given that we are more sanguine than most about expectations of a serious recession. By extension, as the macro improves, so should gold.
Feb 7, 2023 - 13:03:38 PST
The Chinese yuan poses a threat to US dollar dominance, according to Nouriel Roubini.
He predicted in a Financial Times column the emergence of a bipolar currency regime.
"The intensifying geopolitical contest between Washington and Beijing will inevitably be felt in a bipolar global reserve currency regime as well."
This morning I discovered an index that ranks states by how they treat gold. It’s called the Sound Money Index and is maintained by the Sound Money Defense League (SMDL). Here’s a map of the overall index rankings, with lighter being more favorable towards gold:
Gold Futures End Higher, With the U.S. Dollar Lower in the Wake of Powell’s Remarks: MWFeb 7, 2023 - 12:58:04 PST
Gold futures climbed on Tuesday, posting a second straight session gain, with prices finding support from some weakness in the U.S. dollar as Federal Reserve...
U.S. Could Be Heading Into Period of ‘Transitory Disinflation,’ Traders and Strategists Say: MWFeb 7, 2023 - 12:23:08 PST
Hopes for a further decline in U.S. inflation this year are giving way to a risk that any improvement in price gains will turn out to be fleeting.
Fed Chair Powell Says ‘Disinflationary Process Has Begun’ in the US EconomyFeb 7, 2023 - 12:20:16 PST
Federal Reserve Chair Jerome Powell said Tuesday the "disinflationary process" in the U.S. economy has begun, and said additional rate hikes will likely be necessary to bring inflation back to its 2% target.
They’re still at it! Every month the balance shrinks by many billions of dollars. In conjunction with the support of the mainstream media, the Federal Reserve continues spinning its tale of employment, (price) inflation, and Quantitative Tightening (QT). The current balance sheet level of $8.4 trillion has not been seen since 2021. the_balance_sheet...
After raising rates as expected, Federal Reserve Chair Jerome Powell addressed the nation this week without referencing Ukraine nor the Pandemic as the cause of (price) inflation. Perhaps the start of a new year gave a reason for the change, or maybe he’s looking to start a new narrative soon. It’s difficult to determine as he continued in Fedspeak, avoiding real answers during the Q &...
Will the Fed be successful with its "Immaculate Disinflation"? Or, will we still have to "pay an even higher price" for their use of Weapons of Massive Monetary Destruction in 2020-21?