RSSCategory: Category: Economy

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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Bullion Banks’ Manipulation Schemes Put Taxpayers at Risk

Bullion Banks’ Manipulation Schemes Put Taxpayers at Risk

Gold and silver bugs are well aware that JPMorgan Chase dominates precious metals futures trading. Russ and Pam Martens of the financial blog Wall Street on Parade just identified how much control they have. There are more than 5,300 FDIC insured banks in the U.S. Just two of them, JPMorgan and Citibank, hold 75.7% of all precious metals derivative contracts (primarily futures) in possession of the nation’s banks. Other major Wall Street banks, including Goldman Sachs and Bank of America, are barely even in the game. The market dominance implied by the outsized positions of these two banks is troubling enough. Metals investors have been pleading with regulators to step […]

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Gerald Celente: Fed May Bring Down the Economy, Crash Markets

| September 25, 2018 | Category: Economy
Gerald Celente: Fed May Bring Down the Economy, Crash Markets

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason: It is my privilege now to welcome in Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is perhaps most well-known Trends forecaster in the world, and it’s always great to have him on with us. Gerald, thanks for the time again today, and welcome back. Gerald Celente: Oh, thanks for having me on, Mike. Mike Gleason: Well Gerald, one of the hot topics in the markets today is the escalating trade tensions. Trump just announced another $200 billion in tariffs on China and he looks ready to more than double that if the Chinese should […]

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Trump’s Backdoor Power Play to Rein In the Fed

| September 19, 2018 | Category: Economy
Trump’s Backdoor Power Play to Rein In the Fed

“Just run the presses – print money.” That’s what President Donald Trump supposedly instructed his former chief economic adviser Gary Cohn to do in response to the budget deficit. The quote appears in Bob Woodward’s controversial book Fear: Trump in the White House. Trump disputes many of the anecdotes Woodward assembled. But regardless of whether the President used those exact words, they do reflect an “easy money” philosophy that he has expressed many times before. Trump Likes Low Rates, Loose Money President Trump has described himself as a “low interest rate person.” This past summer, Trump launched a very public attack on the Federal Reserve’s rate hiking campaign. He wants it […]

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Growing job market in the U.S.

Before we dive in let’s first understand the basics. Now, what is the job market? Well in simple terms, the job market is the market in which employers search for employees and employees search for jobs. The job market is also directly related to unemployment. The higher the unemployment rate, the greater the supply of labor in the overall job market. When employers have a larger pool of applicants to choose from, they can be pickier or force down wages. As the unemployment rate drops employers are forced to compete more heavily for available workers, which has the effect of increasing wages. During the past months, we have seen a […]

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Inflation and its Effects on Cash Holdings and Investments

Inflation is a sustained rise in overall prices. A moderate rise in inflation means economic growth while high inflation results in an overheated economy. There are certain factors that affect inflation and a couple of theories that are tied to it. So before we proceed it’s very important to know some of the standing factors that influence inflation and how it affects cash holdings and investment. Inflation can be caused by a number of factors, rising commodities, high-interest rates… etc. Here are some principles and theories you need to know before we continue.  Fraction- Reserve Banking The world currently uses this type of banking system. When someone deposits $1000 in […]

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Gerald Celente Exclusive: “If rates go up too high, the economy goes down, end of story”

| March 12, 2018 | Category: Economy
Gerald Celente Exclusive: “If rates go up too high, the economy goes down, end of story”

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason: It is my privilege now to welcome in Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is perhaps the most well-known trends forecaster in the world and it’s always great to have him on with us. Mr. Celente, thanks again for the time today and welcome back. Gerald Celente: Oh, it’s always great being on. Thank you. Mike Gleason: Well, Gerald, it’s never a dull moment in Washington, D.C., these days. President Trump always keeps it lively. We have the never-ending Russia controversy, of course, the war of words with North Korea, and the intervention […]

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5 Big Drivers of Higher Inflation Rates Ahead

| February 22, 2018 | Category: Economy
5 Big Drivers of Higher Inflation Rates Ahead

Investors got lulled into a state of inflation complacency. Persistently low official inflation rates in recent years depressed bond yields along with risk premiums on all financial assets. That’s changing in 2018. Five drivers of higher inflation rates are now starting to kick in. Inflation Driver #1: Rising CPI The Consumer Price Index (CPI) is a notoriously flawed measure of inflation. It tends to understate real-world price increases. Nevertheless, CPI is the most widely followed measure of inflation. When it moves up, so do inflation expectations by investors. On February 13th, the Labor Department released stronger than expected CPI numbers. Prices rose a robust 0.5% in January, with headline CPI […]

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Sleeper Issues Poised to Rattle Markets

| August 22, 2017 | Category: Economy
Sleeper Issues Poised to Rattle Markets

Investors have been well-trained in complacency. They have spent the past few years watching markets shrug off momentous geopolitical events – each more quickly than the last. Brexit’s impact faded within days. Trump’s election faded within hours. Stocks traded at all-time highs this summer and volatility made all-time lows. That is the set-up as we head into the fall… Almost nobody seems nervous. In this age of central planning and highly artificial markets, it is hard to tell when this period of strange market serenity will end. But vigilant investors should have a few ideas. The next few months are going to challenge the status quo. President Trump Is Under […]

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