Tag: federal reserve

Beware of These Faulty “Inflation Protected” Investments

| September 21, 2020 | Articles: Experts Talk
Beware of These Faulty “Inflation Protected” Investments

The Federal Reserve last week reiterated its commitment to an unprecedented inflation-raising campaign. Specifically, the Fed aims to push the inflation rate above 2% for an extended period. The risk for investors is that central bankers succeed in their mission to depreciate the currency more rapidly – perhaps even more rapidly than intended or acknowledged in the official (understated) inflation data. Inflation is a corrosive force that eats away at the real value of savings and investments. It is perhaps the biggest threat looming on the horizon for millions of retirees who have been steered into assets marketed as “conservative” – such as dollar-denominated money market accounts, bonds, and fixed […]

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Gold & Silver Shine as Fed Targets Bondholders for Capital Losses

Gold & Silver Shine as Fed Targets Bondholders for Capital Losses

As the tech-heavy stock market indexes sold off on Thursday, many investors were forced to re-think their positions. For the past few months, mega cap technology companies like Apple, Amazon, and Tesla have led the market higher. Yesterday they led the market lower. Now the question is: Where can investors look for leadership going forward? As would be expected during big down days for equities, gold held up relatively better. For the week, though, gold, silver, and platinum prices are all down. Palladium has certainly shown leadership within the metals space in recent years. But despite this week’s gains, palladium prices still sit below their highs from February. And despite […]

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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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“Government Sachs” Is Worried About the Federal Reserve Note

“Government Sachs” Is Worried About the Federal Reserve Note

As July comes to a close, gold is up better than 9% for the month and has advanced nearly 30% for the year. Gold’s record-setting rise has been driven by Federal Reserve stimulus, dollar weakness, and strong safe-haven investment demand. Even the Wall Street-centric financial media is taking note: Financial News Anchor #1: Gold is shining once again, this morning. The spot price is touching all-time highs, as the dollar index sits around a two-year low. Financial News Anchor #2: Those gold prices have hit an all-time high. The spot price of gold reaching a record. Gold traditionally surges in times of turmoil. In this case, the economic impact of […]

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Fed Chairman: “We’re Not Even Thinking about Thinking About Raising Rates”

Fed Chairman: “We’re Not Even Thinking about Thinking About Raising Rates”

Market volatility has suddenly spiked in recent days came after the Federal Reserve vowed last Wednesday to keep its benchmark rate near zero through 2022. That’s an unusually long period for the Fed to be projecting rate policy. It reflects the fact that it will take many months and perhaps years for the tens of millions of jobs that were recently lost to return. During his press conference, Chairman Powell stumbled and stammered his way into stating that he would be happy to let inflation continue to rise until the economy approaches full employment. Jerome Powell: We’d be looking to get inflation back up and we’d be prepared to tolerate, uh, […]

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What’s Next, Trillion-Dollar Coins?

What’s Next, Trillion-Dollar Coins?

The massive set of stimulus measures rolled out last month by the Treasury Department and Federal Reserve has left many Americans wanting more… and politicians scheming for new ways to dole out additional trillions in cash. Most taxpayers have already received their $1,200 “stimulus” payments. However, that one-time payment will do little to repair the long-term financial health of the 26 million (and rising) who are newly unemployed. And it surely won’t bail out all the small business owners who were callously deemed “non-essential” and forced to shut down during this pandemic. A national WalletHub survey found that 84% of Americans want another stimulus check. The idea of getting free money is […]

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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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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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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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Fighting the Fed (and the Crooked Banks) by Holding Gold

| January 13, 2020 | Articles: Insights
Fighting the Fed (and the Crooked Banks) by Holding Gold

Market forecaster Martin Zweig famously warned investors against underestimating the power of the Federal Reserve Bank to control markets. He coined the phrase “Don’t fight the Fed” back in the 80’s. Precious metals investors are wondering if this is still good advice. On one hand, it is pretty hard to argue with that bit of wisdom. The Fed Zweig was referencing had begun taking a more overt role in markets, using interest rates as a tool for managing the economy. Paul Volcker dramatically raised interest rates to put price inflation from the late 1970’s back under control. Zweig hailed from an era of less irresponsible central bankers. He expected them […]

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Celente: Interest Rates Heading Zero or Negative to Prop Up Debt Bubble

Celente: Interest Rates Heading Zero or Negative to Prop Up Debt Bubble

Mike Gleason: It is my privilege now to welcome back the one and the only Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is a frequent guest on the Money Metals Podcast and is perhaps the 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, my pleasure. Thanks for having me on. Mike Gleason: Well, Gerald, since we spoke last in August, the Federal Reserve has begun propping up the repo markets, and they resumed buying government debt. They tell us the program on bond purchases should in no way be […]

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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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Why Nobody Chants “End the Fed” Anymore

| October 29, 2019 | Articles: General
Why Nobody Chants “End the Fed” Anymore

Americans hated it when the Federal Reserve handed trillions of dollars to crooked Wall Street banks following the 2008 Financial Crisis. Politicians were confronted about the merits of central banking and bailouts. For the first time in history, college students were chanting “End the Fed” at campaign rallies as Ron Paul took the central bank to task during his presidential campaigns. Virtually everyone in America vehemently opposed the central bank handing piles of cash to the same bankers whose greed and fraud had caused the Financial Crisis. Little has changed, but the public’s revulsion taught them an important lesson. If they give handouts to greedy and fraudulent bankers, they had […]

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