RSSCategory: Category: Money & Currency

Yes, the Fed Will Cover Biden’s $4 Trillion Deficit

Yes, the Fed Will Cover Biden’s $4 Trillion Deficit

Central bankers and their comrades in Washington DC changed course in 2020. The policy shifted from “print money and hand it to Wall Street” to “helicopter money” in the form of direct payments and loans to citizens. The fiscal stimulus, like the Fed’s monetary stimulus before it, provided a fix that addicted markets needed to stay high. The helicopter money represents another “temporary” measure that will almost certainly become permanent. Much like Quantitative Easing and Zero Interest Rate Policy, bureaucrats will have a very hard time stopping what they have started. Direct payments to Americans undermine free markets and the dollar. They represent the next major advance in the effort […]

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Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending

Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending

Gold and silver markets sprung higher on Thursday as April and second quarter trading kicked off. After suffering losses in the first quarter, precious metals may now be due for a spring rally. The U.S. Dollar Index was up slightly this week. Regardless of how the dollar fares against other fiat currencies, investors can expect massive depreciation ahead in real terms. There is no end in sight to the inflationary cycle of spending, borrowing, and printing in Washington. This week, President Joe Biden promoted a so-called infrastructure package that comes in at more than $2 trillion.  That’s on top of $1.9 trillion in bailouts and giveaways finalized last month. Much […]

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The Great Reset Is Coming for the Currency

The Great Reset Is Coming for the Currency

As the Great Reset proceeds from globalist think tanks and technology billionaires to allied media elites, governments, schools, and Woke corporations, what will be “reset” next? Supporters of the World Economic Forum’s all-encompassing Great Reset agenda are eyeing BIG changes for the global monetary system. Plans that might once have been dismissed as pure speculation or conspiracy theories are now being openly pushed by people who occupy the highest levels of power. President Joe Biden’s economic policies were grafted directly from the “build back better” language of the Great Reset’s authors. Biden’s agenda for the economy is now being spearheaded by Treasury Secretary Janet Yellen. The former Federal Reserve chair […]

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Fed Grilled about Its Unsound Currency, Digital Currency Schemes

Fed Grilled about Its Unsound Currency, Digital Currency Schemes

As financial markets gyrated this week, Federal Reserve chairman Jerome Powell touted the U.S. dollar as a form of “sound money.” More on that incredible take in a moment. But first, let’s review this week’s market action. Inflation fears helped drive another spike in long-term bond yields, and by Thursday that began to spook Wall Street. The Treasury market is now off to one of its roughest starts to a year on record. As a result, calls are mounting for the Fed to up its bond purchases. A steepening yield curve is helping to depress precious metals prices. Rising real interest rates tend to be negative for the gold market. […]

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Outlook 2021: Further U.S. Dollar Debasement Ahead

Outlook 2021: Further U.S. Dollar Debasement Ahead

In a year that was marred by a global pandemic and a wave of economic restrictions that crippled many small businesses, financial markets proved to be resilient. Of course, that resilience owes in no small part to the unprecedented outpouring of stimulus from Congress and the Federal Reserve. More stimulus is on the way. On Sunday, President Donald Trump signed the latest COVID relief package into law. Trump had earlier blasted the bill as a pork-laden “disgrace” with inadequate $600 direct payments. Under pressure to avert a government shutdown and keep unemployment benefits flowing, Trump finally relented. And he will continue to push the Senate to take up his $2,000 […]

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A New World Monetary Order Is Coming

A New World Monetary Order Is Coming

The global coronavirus pandemic has accelerated several troubling trends already in force. Among them are exponential debt growth, rising dependency on government, and scaled-up central bank interventions into markets and the economy. Central bankers now appear poised to embark on their biggest power play ever. Federal Reserve Chairman Jerome Powell, in coordination with the European Central Bank and International Monetary Fund (IMF), is preparing to roll out central bank digital currencies. The globalist IMF recently called for a new “Bretton Woods Moment” to address the loss of trillions of dollars in global economic output due to the coronavirus. In the aftermath of World War II, the original Bretton Woods agreement […]

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Fed Chairman Powell Is Vowing to Wreck the Currency

Fed Chairman Powell Is Vowing to Wreck the Currency

As the Federal Reserve embarks on a new campaign to raise inflation rates, markets may be in for a change in character. On Wednesday, Fed Chairman Jerome Powell announced that the central bank would be targeting an inflation “average” of 2%. By the Fed’s measures, inflation has been running below 2% in recent years. So, getting to a 2% average in the years ahead will require above 2% inflation for a significant period. Here’s Powell attempting to explain himself from central bankers’ virtual Jackson Hole conference: Jerome Powell: Our statement emphasizes that our actions to achieve both sides of our dual mandate will be most effective if longer term inflation […]

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New Sound Money Caucus Launched on Capitol Hill

New Sound Money Caucus Launched on Capitol Hill

As the federal government continues to bailout the economy and markets by creating trillions of unbacked pieces of paper and electronic digits, a handful of Congressmen hope to shine a new spotlight on the devastating effects of this runaway financial profligacy. Congressman Warren Davidson (R-OH) recently announced the creation of the Congressional Sound Money Caucus.  According to Congressman Davidson’s office, the caucus exists to promote sound fiscal and monetary policy in the United States with the goal of preserving the purchasing power of the U.S. Federal Reserve Note. Monetary policy, especially since the 2008 financial crisis, coupled with the recent federal fiscal response to coronavirus has re-inflated nominal asset prices […]

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Coin Shortage Ramps Up War on Cash

Coin Shortage Ramps Up War on Cash

Many retail businesses including grocery stores and fast food restaurants have been wrangling with a national coin shortage. Some are posting notices informing customers that they will need to pay in exact change or use alternative payment methods such as credit cards. What’s driving this scarcity of quarters, dimes, nickels, and pennies? The answer from the U.S. Mint: COVID-19. The virus caused some Mint branches to temporarily slow or suspend production this spring. By May, the total number of circulating coins minted this year came in at around 4 billion, a 1 billion-coin shortfall compared with the same period in 2019. Now as economic activity recovers, there aren’t enough coins […]

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Federal Reserve Notes Are Now “Backed” by Junk Bonds

Federal Reserve Notes Are Now “Backed” by Junk Bonds

Wild price action and unprecedented interventions once again characterized this holiday-shortened trading week. Oil prices whipsawed lower Thursday on concerns about expected oil production cuts from Russia and Saudi Arabia.  But the general trend for most other assets, including metals and equities, was up – way up. Stocks finished out the week with the major averages posting their biggest weekly gains in decades in the space of just four trading days.  Investors went on a buying spree based on hopes that we will soon see a definitive peak in coronavirus cases and begin the process of restarting the economy. The stock market also got another boost from the Federal Reserve.  […]

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Crisis Exposes Devastating Consequences of Fed Policy: Americans Have No Savings

Crisis Exposes Devastating Consequences of Fed Policy: Americans Have No Savings

Two weeks ago, during a March 17 address to the nation in response to the COVID-19 outbreak, President Donald Trump asked that Americans work from home, postpone unnecessary travel, and limit social gatherings to no more than 10 people. And last week, on March 27, Trump signed a stimulus package of over $2 trillion dollars to provide relief to an economy on the precipice of collapse. The aid package includes handouts and loans to individuals, small businesses, and other distressed industries. Despite Trump’s “having created the greatest Economy in the history of our Country,” when the markets tanked, massive and immediate government intervention was the only thing left to forestall […]

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Fed President Declares: “No End in Our Ability to Print Money…and Congress Has Told Us To.”

Fed President Declares: “No End in Our Ability to Print Money…and Congress Has Told Us To.”

The roller coaster ride in markets took a sharp turn higher this week after the Federal Reserve and Congress together pledged over 6 trillion dollars to rescue the financial system. Perhaps this week was an inflection point for the mass fear and panic that has cleared out bullion dealers of coins and grocery stores out of toilet paper.  Although the number of coronavirus cases hasn’t yet peaked, there are some signs that the hysteria surrounding the deadly outbreak has. The stock market finally put together a sustained rally even though the economy remains locked down.  But how can equities jump without the impetus of actual earnings from business operations?  The […]

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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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