Tag: federal reserve

Central Banks Are Starting To Worry Investors

Central Banks Are Starting To Worry Investors

The original article was posted on TimeMoney.com In previous articles (here and here), we’ve discussed how central banks are going to halt adding liquidity into the financial system which could cause a correction in the stock market. Many people scoff at that idea because they look at the current market and say, “what could possibly go wrong?” This is recency bias at work as many investors have never experienced a sizeable market correction. Stimulus reached the highest level of this cycle. Quantitative easing has been among the most important drivers of the rally in asset prices for the past 8 years, once discontinued, the opposite will happen – namely a decline in asset prices. If you are an […]

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Is the Yellen Fed Planning to Sabotage Trump’s Presidency?

Is the Yellen Fed Planning to Sabotage Trump’s Presidency?

The Federal Reserve can make or break a president. Monetary policy influences all financial markets as well as the cycles in the economy. No president wants to have to run for re-election when the stock market and economy are turning down. Recall that President George H.W. Bush was sitting on sky-high job approval numbers in 1991 and was expected to coast to victory in his 1992 re-election bid. But then the economy swooned toward recession, giving Bill Clinton the opening he needed. Bush later blamed Federal Reserve chairman Alan Greenspan for his defeat. Greenspan had held interest rates too high for too long, Bush complained. On the campaign trail in […]

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Gold Prices Fall To The Thrill Of Investors

Gold Prices Fall To The Thrill Of Investors

The price of gold fell to a new low during the first week of July according to several reports that claim the decrease in value is due to a strong job market and the expectations of higher interest rates in the United States. August gold fell by $13.60, which is the equivalent of a 1.1 percent decrease in value. Such rate is the lowest since March when prices dropped by 2.6 percent. Silver also experienced its share of decline with initial values falling by as much as 10 percent on Friday (July 7). There was eventually a reversal in the numbers that increased September silver’s value from its original price […]

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Fed Officials Say More Hikes Are on The Way, Markets Disagree

Fed Officials Say More Hikes Are on The Way, Markets Disagree

Federal Reserve Chairwoman Janet Yellen says she is planning more hikes in the Fed funds rate, but you wouldn’t know it by watching the markets. So far, the response in foreign exchange, bonds, and equities isn’t what people expected. Markets have always been notorious for behaving unpredictably. But in an age when central bankers micromanage virtually all markets, the behavior could be the result of careful planning. Maybe the recent market action was only unpredictable for those of us outside of the FOMC conference room. Officials hiked rates in December, March, and June. Despite that the U.S. dollar has fallen to its lowest levels in more than a year. The […]

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Michael Pento Warns of Exploding Debt, Inverted Yield Curve, and Then “Economic Armageddon”

Michael Pento Warns of Exploding Debt, Inverted Yield Curve, and Then “Economic Armageddon”

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason: Michael, how are you today? Welcome back. Michael Pento:  I’m doing fine, Mike. Thanks for having me back. Mike Gleason:  When we had you on last you commented that you believed the market was pricing in President Trump getting virtually all of his policy agenda pushed through Congress, the tax cuts, repealing Obamacare, and so forth. To say Trump has encountered some resistance in Washington would be a major understatement. The establishment of the right doesn’t seem to like him. The left and the mainstream media of course hate him. So, Michael before we get into the […]

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Will Trump Usher In an Era of Sound Money?

| January 24, 2017 | Articles: Insights
Will Trump Usher In an Era of Sound Money?

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 […]

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Pension Funds Need Gold before It’s Too Late

Pension Funds Need Gold before It’s Too Late

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 […]

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Outlook for Precious Metals in 2017

Outlook for Precious Metals in 2017

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 […]

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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.

| December 14, 2016 | Category: Economy
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 […]

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Gold Is a Safe Bet No Matter What the Fed Will Do

| November 10, 2016 | Category: Economy
Gold Is a Safe Bet No Matter What the Fed Will Do

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 […]

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Fed Chair Yellen’s Plan B: “Intervene Directly” in Stock Market

Fed Chair Yellen’s Plan B: “Intervene Directly” in Stock Market

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 […]

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Awareness of Fed Credibility Problems Going Mainstream

| August 31, 2016 | Articles: Insights
Awareness of Fed Credibility Problems Going Mainstream

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. […]

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$135,000 Gold-Backed Scholarship Fund Launched to Help Students Cope with Federal Reserve Induced Tuition Inflation

| August 19, 2016 | Articles: General
$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, […]

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The Colors of Money Andrew Jackson Still Fights the Banking War

The Colors of Money Andrew Jackson Still Fights the Banking War

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, […]

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