RSSCategory: Category: Money & Currency

Central Banker Pull Out Their Monetary Bazookas to Try to Avert a Coronavirus Crash

Central Banker Pull Out Their Monetary Bazookas to Try to Avert a Coronavirus Crash

The emerging coronavirus pandemic is already crimping global commerce. In response, the S&P 500 has thus far put in two weeks’ worth of declines (the index fell 2.1% last week) since making new highs to start the year. Even though the U.S. stock market hasn’t even entered a true “correction” phase yet, Wall Street is already clamoring for more Fed stimulus. Mainstream stock market mavens figure the central bank will step in to limit downside – and they are probably right. Following the Federal Open Market Committee’s decision on Wednesday to keep rates unchanged, Fed Chairman Jerome Powell said he is “carefully monitoring the situation” with regard to the Chinese […]

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Former Fed Official Says Government Can Borrow a LOT More

Former Fed Official Says Government Can Borrow a LOT More

Narayana Kocherlakota, the former President of the Federal Reserve bank of Minneapolis wants you to know the Federal Government can never borrow too much money. Our government already borrowed $23 trillion and deficits are expected to exceed $1 trillion per year. He knows many Americans feel anxious about the federal government going bankrupt, and he has a simple solution. He just wrote the following in an editorial published by Bloomberg: Policy makers and voters often express concern about the level of the federal deficit, which topped $1 trillion last year, and the national debt, now more than $23 trillion. But, unlike a household that owes money to a bank, the U.S. government […]

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The Signs Swirl All Around Us, so Is the Monetary Reset at Hand?

Article written and contributed by Chris Powell. For most of this decade owning gold and gold-related investments has required the patience of Job, and the sector is so obscure that it is hard to be sure of anything. But for months now the unusual developments have been piling up so much that it may be possible to regain some optimism. There are indications of a shortage of metal not just at the New York Commodities Exchange, where for months now most contracts have been settled through a supposedly “emergency” procedure called “exchange for physicals,” but also in London, the hub of the world gold market, where the usual flow of […]

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The Fed’s “Not QE” Is Morphing into “QE4ever”

The Fed’s “Not QE” Is Morphing into “QE4ever”

Another week, another new and expanded repo market intervention by the Federal Reserve. On Thursday, the Federal Reserve Bank of New York intervened twice with fresh liquidity injections. Fed officials raised their offerings for overnight repos up from $75 billion to a staggering $120 billion. This comes on top of the $60 billion per month in Treasury bill purchases that will extend well into next year and possibly beyond. Over the past month alone, the Fed’s balance sheet has soared by $200 billion. You might think numbers like these should be quite alarming to investors and to anyone who holds U.S. dollars. But the strange thing about these Fed interventions […]

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Federal Reserve’s New QE Transfers Wealth to Its Owner Banks

Federal Reserve’s New QE Transfers Wealth to Its Owner Banks

Metals investors are positioning themselves for rapidly developing political and geopolitical events, as well as a rapidly expanding Federal Reserve balance sheet. What started out as a limited intervention to provide temporary liquidity to overnight lending markets has morphed into a massive $60-billion-per-month Treasury-buying campaign. By some measures, it’s even bigger than the last Quantitative Easing program. The Fed has yet to fully explain why this is all necessary given the lack of an immediate crisis in the real economy. Last week, Fed chair Jerome Powell took great pains to insist that their expanded repo market operations are “not QE” – only to announce a massive new Treasury bill buying […]

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“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools

“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools

Jerome Powell has something in common with Bagdad Bob, Saddam Hussein’s infamous press secretary. They’re both liars, suggests Money Metals podcast guest Craig Hemke of the TF Metals Report. Telling obvious lies with a straight face is part of Powell’s job description. He hopes to maintain order even though anyone who is paying attention knows something extraordinary is going on. When the Fed stepped into the “repo” markets at the end of September with hundreds of billions in short term loans for its owner banks, Powell stood out front telling everyone there is nothing to worry about. The Fed’s repo market lending was initially sold as a very temporary measure to […]

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Monetary Madness Puts U.S. Dollars Holders in Jeopardy

Monetary Madness Puts U.S. Dollars Holders in Jeopardy

We’re in uncharted territory. Never before have U.S. fiscal and monetary policy been leveraged so heavily to boost an economy that wasn’t even in recession. Something will break – and it could be the value of U.S. currency. The Federal Reserve Note now faces devaluation pressures on multiple fronts. With the federal government running a trillion-dollar budget deficit and an election year approaching, fiscal restraint is a dead letter in Washington, D.C. Politicians are fighting over who can promise to borrow and spend the most. Meanwhile, President Donald Trump is trying to talk the dollar down versus the currencies of China and other trading partners. Even as Trump vents frustration […]

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Precious Metals Soar on Falling Yields, Currency Turmoil

Precious Metals Soar on Falling Yields, Currency Turmoil

What a wild week it’s been for investors. The threat of global trade wars and currency wars sparked big swings across all major asset classes.  Bond yields dove toward historic lows.  Stocks plunged earlier in the week before rebounding sharply by Thursday.  And precious metals rode a huge safe-haven wave higher. Gold prices eclipsed the $1,500 level on Wednesday for the first time in over six years. Meanwhile, silver pushed above $17 an ounce to record a one-year high. Both metals are up over 4% for the week. The money metals are becoming increasingly attractive as President Donald Trump ramps up his battles against China abroad and the Federal Reserve […]

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The Sound Money Showdown in U.S. States

The Sound Money Showdown in U.S. States

Policies relating to sound money have been the subject of substantial debate at the state level this year, with bills, hearings, and/or votes taking place in nearly a dozen legislatures. As most state legislatures have now wrapped up their work for the year, let’s review the victories (both offensive and defensive)—and lone defeat—for sound money during the 2019 session. The Sound Money Defense League’s primary goal is to remove every kind of taxation imposed on constitutional money. Given its practical importance, the hottest issue in the states has been taxation—i.e. whether citizens should face a levy when buying or selling gold and silver. House Bill 2684, introduced by West Virginia […]

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After Fed Disappoints, Will Trump Initiate Currency Intervention?

After Fed Disappoints, Will Trump Initiate Currency Intervention?

Following months of cajoling by the White House, the Federal Reserve finally cut its benchmark interest rate. However, the reaction in equity and currency markets was not the one President Donald Trump wanted – or many traders anticipated. The Trump administration wants the Fed to help drive the fiat U.S. dollar lower versus foreign currencies, especially those of major exporting countries. Instead, the U.S. Dollar Index rallied throughout July ahead of the expected rate cut and continued rallying after Fed chairman Jerome Powell made it official on Wednesday. In fact, the Federal Reserve Note broke out to its highest level since early 2017. The Fed also announced it would end […]

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Monetary Metals Don’t Need a “Gold Standard” Proxy System

Monetary Metals Don’t Need a “Gold Standard” Proxy System

By Stefan Gleason, Money Metals Exchange President Trump moved recently to nominate an avowed sound money advocate, Judy Shelton, to the Federal Reserve Board. That triggered a flurry of superficial and derisive references in the controlled media to Shelton’s past support of a gold standard. For example, CBS News described her as “a believer in the return to the gold standard, a money policy abandoned by the U.S. in 1971.” According to the story, “mainstream economists believe it’s a fringe view.”  As the “mainstream” media portrays sound money advocates, we apparently are nostalgic for the monetary system that existed all the way up until 1971.  Being backward looking by nature, […]

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The Hidden Reason Why Fed Chairman Powell and “Systemically Important” Banks Oppose a Gold Standard

The Hidden Reason Why Fed Chairman Powell and “Systemically Important” Banks Oppose a Gold Standard

By Mike Gleason, First Published on Sound Money Defense League Chairman Powell’s testimony this week was closely scrutinized not just for its economic implications but also for its political overtones. Powell cited “trade tensions” as cause for concern about the strength of the global economy. He clearly seemed to be blaming President Trump’s tariffs. But if the tariffs are what ultimately move the Fed to cut rates, Trump will have finally gotten what he wants out of Powell. In recent weeks, Trump has stepped up his attacks on the central bank, calling it the biggest problem facing the economy, floating the idea of firing Powell, and suggesting his administration would […]

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House Monetary Policy Committee Member Questions Treasury and Fed about Their Gold Activities

Washington, DC (April 25th, 2018) – A Member of Congress posed some pointed questions to the Federal Reserve and the U.S. Treasury this week about their activities involving America’s gold reserves, including, apparently, efforts to “drive gold out of the world financial system in favor of the Federal Reserve Note or Special Drawing Rights issued by the International Monetary Fund.” In a letter dated April 24, Representative Alex Mooney (R-WV) wrote to Jerome Powell, Chairman of the Federal Reserve, and Steven Mnuchin, Secretary of the U.S. Treasury, raising concerns about their formal policy to devalue the Federal Reserve Note (e.g. “inflation targeting”) and requesting information about the United States’ use […]

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Michael Pento: Currencies Will Be “Flushed Down the Toilet” Triggering a “Mad Rush into Gold”

Michael Pento: Currencies Will Be “Flushed Down the Toilet” Triggering a “Mad Rush into Gold”

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason:  It is my privilege now to welcome back Michael Pento, president and founder of Pento Portfolio Strategies, and author of the book The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market. Michael is a well-known money manager and a fantastic market commentator, and over the past few years has been a wonderful guest and one of our favorite interviews here on the Money Metals Podcast and we always enjoy getting his Austrian economist viewpoint. Michael, welcome back and thanks for joining us again. Michael Pento: What a great introduction. Thanks for […]

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