RSSCategory: Category: Economy

Gold Price Relationship to the Economy

| February 25, 2020 | Category: Economy
Gold Price Relationship to the Economy

Too often, you will hear people talk about how the economy affects gold prices and not how gold prices affect the economy. However, whether you are a gold collector, investor, or merely interested in this subject, it is vital to understand why gold prices matter and have a 360-degree image of the precious metals. Whenever there is a crisis in the economy, the prices of gold always seem to benefit. Currently, the Brexit uncertainties are the primary concern, and studies have shown that the prices of gold might surge to $5000 in 2020. The prices of gold in 2020 are still holding on to strong gains, and recently, the Federal […]

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U.S. Senators Bash Gold during Fed Confirmation Hearings

| February 18, 2020 | Category: Economy
U.S. Senators Bash Gold during Fed Confirmation Hearings

The U.S. Senate weighed the issue of pegging the currency to a gold standard last week. Not surprisingly, the mere mention of gold ruffled the feathers of some Senators. More on that in a moment. In recent days, the monetary metals have contended with a rising U.S. dollar versus foreign currencies, a familiar story. The Dollar index has risen steadily since the beginning of the year and got an added boost from fears over the China virus outbreak. The USDX is now close to taking out its 2019 high, although it may be getting overbought near term. We have already seen most major commodities including copper and crude oil come […]

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Axel Merk: Fed to Stimulate in Any Crisis; Don’t Let Short-Term Events Bother You

| February 7, 2020 | Category: Economy
Axel Merk: Fed to Stimulate in Any Crisis; Don’t Let Short-Term Events Bother You

Mike Gleason: It is my privilege now to welcome in Axel Merk President and Chief Investment Officer of Merk Investments and author of the book Sustainable Wealth. Axel is a well-known market commentator and money manager and is a highly sought-after guest at financial conferences and on news outlets throughout the world and it’s always great to have him on with us here on the Money Metals Podcast. Axel, it’s a pleasure to have you back and thanks for joining us again. Welcome. Axel Merk: Good to be with you. Mike Gleason: Well, I’d like to start by getting your take on the coronavirus since that has been dominating headlines in recent days. There is […]

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Michael Pento: THIS ONE THING Will Tell Us When the Bubble Economy Is Bursting…

| January 27, 2020 | Category: Economy
Michael Pento: THIS ONE THING Will Tell Us When the Bubble Economy Is Bursting…

Mike Gleason: It is my privilege now to welcome back Michael Pento, President and founder of Pento Portfolio Strategies. Michael’s a well-known money manager, market commentator and author of the book, The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market. He’s been a regular guest with us over the years and we always love getting his fantastic insights. Michael, thanks for the time again today, and welcome back. Michael Pento: It’s always a pleasure to be on with you. Thank you for inviting me back on the program. Mike Gleason: Well, we’re having a hard time seeing a big move higher in metals prices until one of two […]

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Will Negative Interest Rates Be the Last Straw?

| December 23, 2019 | Category: Economy
Will Negative Interest Rates Be the Last Straw?

Zero Interest Rate Policy (ZIRP) was considered “extraordinary” when central bankers rolled that out roughly ten years ago. At that time, people would still have laughed at the idea of negative interest rates. Lenders didn’t pay borrowers and nobody paid their bank to hold their deposits. So much has changed in the past 10 years. Now negative interest rate policies (NIRP) look set to go viral. German banks will soon start toeing the European Central Bank line and pass negative rates on to depositors there. Germans who endured zero interest rates and somehow still want a savings account will now have to pay for the “privilege.” The idea is preposterous, and […]

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Inflation Threat Looms in 2020 as Fiscal and Monetary Stimulus Ramp Up

| December 18, 2019 | Category: Economy
Inflation Threat Looms in 2020 as Fiscal and Monetary Stimulus Ramp Up

The Federal Reserve left its benchmark interest rate unchanged as expected last week. However, Fed Chairman Jerome Powell made news with some of his most dovish remarks to date – stating flatly that he won’t hike rates again until inflation moves up significantly. “In order to move rates up, I would want to see inflation that’s persistent and that’s significant,” Powell said at a news conference following the Fed’s announcement. He would be anticipating “a significant move up in inflation that’s also persistent before raising rates to address inflation concerns.” He could get his wish in the months ahead as monetary policy, fiscal policy, and the economy all seem to […]

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Congress Still Covering for the Fed’s Bailouts

| December 9, 2019 | Category: Economy
Congress Still Covering for the Fed’s Bailouts

Wall Street owns Washington DC – figuratively speaking. In literal terms, the largest banks in the nation own the Federal Reserve. They also bought and paid for a great number of DC politicians as evidenced by campaign contributions, Congressional voting records and sham oversight. This was on full display at last week’s Committee on Financial Services hearing. “The Honorable Randal Quarles,” Vice Chairman of Supervision at the Fed, was among three people called to report for purposes of “oversight.” A memo outlining the topics of discussion was published by the committee. The discussion ranged from a proposed rule change which would allow individuals with “certain minor criminal offenses” to get a job […]

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Elephant in the Room: Why Nobody Talks About Ballooning Federal Deficits

| December 3, 2019 | Category: Economy
Elephant in the Room: Why Nobody Talks About Ballooning Federal Deficits

The presidential race will mesmerize Americans over the next 11 months. The country hasn’t been this polarized since the Civil War. Voters on the left desperately want a story which undermines support for President Trump. They are also searching for a candidate who can actually win. Many Republicans are outraged about the Deep State and corporate media campaign obsession with unseating a duly elected president – and they worry an avowed socialist could win the Democratic primary and, just possibly, the general election. Plenty about the year ahead is unpredictable. Massive federal budget deficits and unrestrained borrowing, however, are a certainty. The federal government is not going to voluntarily shrink […]

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Fed’s Own Forecasts Again Dead Wrong as QE4 Accelerates

| November 1, 2019 | Category: Economy
Fed’s Own Forecasts Again Dead Wrong as QE4 Accelerates

Precious metals markets enter November’s trading with bulls eying a potential year-end rally. Gold and silver prices did manage to post gains on Wednesday and Thursday after the Federal Reserve announced a quarter point rate cut. But the Fed followed up its move with language suggesting interest rate policy is now on pause. News Anchor #1: The Federal Reserve cut the benchmark rate by a quarter of a percentage point. It’s now at 1.5% to 1.75%. The rate cuts come on a global slowdown; they say. Also muted inflation. Now the Fed does signal in this statement a pause for future rate cuts. The Federal Reserve statement changes the words […]

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Gordon Chang: Gold to Benefit as Chinese Economy Hits the Wall

| August 17, 2019 | Category: Economy
Gordon Chang: Gold to Benefit as Chinese Economy Hits the Wall

“No China Trade Deal Until 2020, Maybe 2021… Maybe Never”     Mike Gleason: It is my privilege now to welcome back Gordon Chang, author, television pundit and columnist. Gordon is a frequent guest on Fox News, CNBC and CNN among others, and is one of the foremost experts on Asian economics and geopolitics, having written books on the subject, and it’s great to have them back on with us. Gordon, it’s a real honor to have you on again and thanks so much for the time today. I know you’re a man in high demand these days given your expertise on Asia and China in particular and I really […]

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Jp Cortez: Sound Money Movement Gains Momentum in the States

Jp Cortez: Sound Money Movement Gains Momentum in the States

Mike Gleason: It is my privilege, now, to welcome in Jp Cortez, with the Sound Money Defense League, a non-partisan national public policy organization working to restore sound money on the state and federal level. Jp is a proponent of, and has studied in the Austrian School of Economics, and his role at SMDL as policy director, has him regularly testifying at legislative hearings and speaking at various events throughout the country. His articles and analysis have appeared in many national news publications, including The Washington Examiner, Huffington Post, Mises Institute, Foundation for Economic Education, and more, and he’s a frequent guest on various podcasts and national radio shows to […]

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Trump Then and Now on Deficits: What a Difference 3 Years Make!

Trump Then and Now on Deficits:  What a Difference 3 Years Make!

As investors look ahead to a likely rate cut next week by the Federal Reserve, gold and silver markets have been consolidating their recent gains. A big move in metals markets could come after the Fed’s policy meeting next Wednesday. Of course, the magnitude and direction of the move will depend on what Chairman Jerome Powell and company do and say. Central bankers are under immense political pressure to lower interest rates and resume purchases of government bonds. A recent downturn in manufacturing and home sales data may well give them cover to roll out new stimulus even as the stock market sits near a record high. It remains to […]

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Federal Debt Ceiling Reached as Federal Spending Rages

Federal Debt Ceiling Reached as Federal Spending Rages

The federal government will soon run up against its self-imposed borrowing cap once again. Current estimates are for the government to max out its credit limit at a little over $22 trillion in early September. Congress goes on recess in August, so there is some pressure to address the cap right now. Treasury Secretary Steve Mnuchin has been fulfilling what seems to be the most sacred responsibility of his position: borrowing money. It’s one that each of his predecessors has also undertaken, without fail and without regard to party affiliation, in recent decades. He is solemnly arguing why it would be wholly irresponsible for Congress not to approve another massive […]

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Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis

Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis

Presidential candidates Bernie Sanders and Elizabeth Warren are promising as much as $1.6 trillion in student debt forgiveness for millions of borrowers. Critics smell a cynical campaign ploy to try to buy the youth vote. How is it either realistic or fair to declare an entire category of debt to be assumed by taxpayers? Regardless, pie-in-the-sky proposals to cancel student debt shed light on a very down-to-earth problem for not only college students and recent graduates – but also for the economy and financial markets. Student loans now rank as the second largest category of American consumer debt – bigger than credit cards, bigger than auto loans, and behind only […]

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