Tag: federal reserve
Now that Donald Trump has been sworn in, Americans will start getting some glimpses of what his presidency actually means. Here are some educated guesses of what to expect when it comes to the dollar and sound money issues, based on what we know before the kick-off of Trump’s administration. The Federal Reserve Donald Trump became very critical of Janet Yellen and the Fed during the final months of the campaign. He accused the Fed of supporting the Obama administration and, by extension, Hillary Clinton by inflating a bubble in the stock markets and keeping interest rates artificially low. That was before the election. Shortly after the election, Trump signaled […]
Tens of millions of Americans and their employers pour money into pension plans each month, counting those funds to grow and to be there when needed at retirement. But a time bomb awaits. The bulk of U.S. pension funds are dangerously underfunded, and the assets are often invested in securities that have bleak prospects for providing income that keeps up with a general decline in purchasing power. A pension plan requires an employer to make contributions into a pool of funds set aside for a worker’s future benefit. In 1875, when the American Express Company established the first private pension plan in the United States, the face of retirement was […]
Precious metals had a wild ride in 2016, launching higher in the first half of the year and then falling much of the way back to earth in the second half. Our outlook for 2017 hinges on some of the drivers that figured prominently in last year’s trading. There are also a couple of new wrinkles. Europe We’ll start with some fundamentals that metals investors have become well acquainted with in recent years. The troubles plaguing Europe seem to be forgotten, but they certainly aren’t gone. The question is whether or not officials in Europe will be able to keep the wheels on in 2017. Several major European banks remain […]
Fed Chair Janet Yellen is scheduled to hold a press conference at EST 2:30 PM on Thursday to elaborate on the economic outlook and policy statement.
The Federal Reserve will inaugurate the Trump era this week with a near-certain interest rate increase and new economic forecasts providing a first glimpse into whether the U.S. election has reshaped the central bank’s growth and inflation outlook. Fed officials have long hoped that other government policies would take the place of monetary engineering, which some believe may have lost its effectiveness in lifting economic growth. They have warned in recent weeks that any new government spending should specifically be designed to boost productivity in an economy that is already near full employment and facing a high public debt burden. As possible rate hike is already on card we see […]
By Olivier Garret Gold prices have dropped from $1,340 an ounce in September to as low as $1,250 late last week. This is largely due to forecasts of a rate hike by the US Federal Reserve. But the sharp drop in gold began to reverse on Monday. The price rose by more than $25 in just three trading days. Most gold analysts say the main reason for the bounce is reaction to comments made by Yellen last Friday. Judging from what Fed Chair Janet Yellen said last week, gold is likely to move up no matter what the US economy does. Fed Chair Yellen highlights plans for “high-pressure economy” In […]
October could see a ramping up of volatility across all asset markets. The month is notorious on Wall Street for the 1987 stock market crash. Fall crashes also occurred in 2002 and 2008. Are we due for another one? Perhaps. Some analysts think it will come after the election. Others think the stock market will stay elevated until the Federal Reserve raises rates. The Fed will be out of the picture this month – at least as far as policy decisions are concerned. The Fed won’t convene another policy meeting until November 1-2. Most Fed watchers expect the central bank to avoid making any rate moves so close to the […]
The nation’s pre-eminent central planners just held their annual gathering at an exclusive resort just outside Jackson Hole, Wyoming and discussed how to interfere even more deeply in markets. In a speech entitled “The Federal Reserve’s Monetary Policy Toolkit: Past, Present and Future,” Fed chair Janet Yellen outlined why zero interest rate policy (ZIRP), purchases of toxic mortgage securities, and monetization of Treasury debt just aren’t adequate. Officials must add negative interest rates (NIRP) and purchases of even more sketchy assets to their “toolkit.” Yellen has spent more than a year floating the idea of negative rates, so it is no surprise she is hustling the ludicrous policy once again. […]
$135,000 Gold-Backed Scholarship Fund Launched to Help Students Cope with Federal Reserve Induced Tuition Inflation
A major national precious metals dealer announced today the creation of the first gold-backed scholarship fund to support outstanding students who understand that gold is money and can articulate the failures of the inflation-creating Federal Reserve System. Money Metals Exchange, a national precious metals dealer recently ranked “Best in the USA,” teamed up with the Sound Money Defense League, setting aside 100 oz of physical gold, currently worth $135,000, to help outstanding students pay for ever-rising education costs. “The Federal Reserve’s inflationary policies have jacked up education costs, and our company is proud to help students who understand this problem as they cope with this unfolding disaster,” said Stefan Gleason, […]
By Guy Christopher, Originally Published on Money Metals Exchange This year marks the 101st anniversary of Andrew Jackson rolling over and over in his grave. Back in 1915, the brand new Federal Reserve pasted the 7th President’s likeness on its first $10 debt note – a sharp slap to the President who fought and won his famously bitter battle to destroy the “corrupting monster” of central banking. Old Hickory’s 1836 victory held steady until 1913, when the bankers gathered in secret at Jekyll Island, Georgia to plot the greatest bank robbery in history. The scheme was simple. First, print all the money they wanted, backed only by government promises. Then, […]
“The last duty of a central banker is to tell the public the truth.” – Alan Blinder, former Federal Reserve Board Vice Chairman The Federal Reserve Board finds itself back in a quandary of its own making. When Fed chair Janet Yellen pushed through an interest rate hike this past December, she confidently cited an “economy performing well and expected to continue to do so.” The Fed set the stage for more rate hikes in 2016. But something went awry along the way – namely, the Fed’s upbeat forecast. Official pronouncements of optimism don’t square with the economic realities now unfolding. Since the Fed’s rate hike, warning signs of a […]
The Fed’s next move will be towards ease because of the weakness in the US economy. However, it would not happen right away, I expect it in the first quarter of 2016, so perhaps in March or April of 2016 I think the Fed will give some kind of easing. What happened in the last 30 days is exactly what we were expecting, but I think it’s come as a shock to them, because their forecasting models are different. And so they’re beginning to wake up to the fact that we’re going to a global depression and growth depression. But now the Fed is waking up to that, they don’t do anything quickly, it’s going to take a few months to digest all of this, they’re going to hope that things bounce back, but I don’t think that they will. Finally, I expect them by maybe the end of the first quarter of 2016 to ease.
We started with the statement ‘simply print more Fiat currency, and you inflate away the debt’… and the first part ‘simply print more Fiat currency’ fails the Trinity of Truth test. Under our current system it’s impossible to ‘simply print more Fiat currency’. How about the rest? Can we ‘inflate away the debt’? Well, if each new Dollar created is of necessity accompanied by a newly created Dollars’ worth of debt, this does not seem likely, does it? Any effort to ‘print away’ existing debt will result in ever larger debt. This is the road to bankruptcy.
Gold rose instantly right after the FOMC Minutes appeared, as the U.S. dollar sold off. The price of gold broke through resistance at $1,130 /oz, pushing towards its critical technical level of $1,135 /oz. Gold traders are clearly reliefed that the Fed stays focused on its 2% inflation target, and that inflation remains an important condition before rising interest rates.
In the unlikely event that the Fed raises rates in September, gold looks poised to continue higher over the long-term as investors will likely seek out its wealth preservation qualities as the U.S. Dollar continues to lose value in real terms. The global economy is not strong, and in fact could not tolerate higher interest rates. The ongoing currency war will also serve to keep currency values down as economies fight to keep moving forward.