Tag: interest rates

Trump’s Backdoor Power Play to Rein In the Fed

| September 19, 2018 | Category: Economy
Trump’s Backdoor Power Play to Rein In the Fed

“Just run the presses – print money.” That’s what President Donald Trump supposedly instructed his former chief economic adviser Gary Cohn to do in response to the budget deficit. The quote appears in Bob Woodward’s controversial book Fear: Trump in the White House. Trump disputes many of the anecdotes Woodward assembled. But regardless of whether the President used those exact words, they do reflect an “easy money” philosophy that he has expressed many times before. Trump Likes Low Rates, Loose Money President Trump has described himself as a “low interest rate person.” This past summer, Trump launched a very public attack on the Federal Reserve’s rate hiking campaign. He wants it […]

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Interest rates and its effect on Gold and precious metals

An interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. The assets borrowed could include cash, consumer goods, and large assets such as a vehicle or building. In terms of borrowed money, the interest rate is typically applied to the principal, which is the amount of money lent. The interest rate is the cost of debt for the borrower and the rate of return for the lender. So in other words, interest rates are the prices for holding or loaning money. Banks give out interest rates for saving money which attracts depositors. Banks also receive interest […]

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Inflation and its Effects on Cash Holdings and Investments

Inflation is a sustained rise in overall prices. A moderate rise in inflation means economic growth while high inflation results in an overheated economy. There are certain factors that affect inflation and a couple of theories that are tied to it. So before we proceed it’s very important to know some of the standing factors that influence inflation and how it affects cash holdings and investment. Inflation can be caused by a number of factors, rising commodities, high-interest rates… etc. Here are some principles and theories you need to know before we continue.  Fraction- Reserve Banking The world currently uses this type of banking system. When someone deposits $1000 in […]

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The Impact of the U.S. Economy on the Prices of Precious Metals

The price of precious metals, especially gold, reveals the true economic state of U.S. If today’s gold price is soaring high, it means that the economy is not healthy. It is because investors see gold as a safe haven on the verge of economic crisis. On the other hand, when the price of gold drops down, it signifies that the economy is healthy. Everything appears to be interdependent in modern complex economies, but it cannot be concluded that everything effects everything, including the value of gold. According to Fed Chairman Jerome Powell, in his first speech on the economic outlook since assuming the helm at the U.S. central bank on […]

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Gerald Celente Exclusive: “If rates go up too high, the economy goes down, end of story”

| March 12, 2018 | Category: Economy
Gerald Celente Exclusive: “If rates go up too high, the economy goes down, end of story”

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason: It is my privilege now to welcome in Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is perhaps the most well-known trends forecaster in the world and it’s always great to have him on with us. Mr. Celente, thanks again for the time today and welcome back. Gerald Celente: Oh, it’s always great being on. Thank you. Mike Gleason: Well, Gerald, it’s never a dull moment in Washington, D.C., these days. President Trump always keeps it lively. We have the never-ending Russia controversy, of course, the war of words with North Korea, and the intervention […]

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Gerald Celente on Markets: “When Interest Rates Go Up, This Thing Goes Down”

| August 15, 2017 | Category: Economy
Gerald Celente on Markets: “When Interest Rates Go Up, This Thing Goes Down”

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason (Money Metals Exchange): It is my privilege now to welcome in Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is a well-known trends forecaster and highly sought-after guest on news programs throughout the world and has been forecasting some of the biggest and most important trends before they happen for more than 30 years now. It’s always great to have him on with us. Mr. Celente, thanks so much for the time today, and we appreciate you joining us. Gerald Celente (Trends Journal): Thanks for having me on, Mr. Gleason. Mike Gleason: Well, I want […]

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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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Capital Controls May Be Coming to the US

Those who hoped President Trump would tone down his protectionist rhetoric will be unnerved six weeks into his tenure. From his meeting with business CEOs, Trump has put trade “front and center.” So far, all is going well for the president. Markets are inching higher, and inflationary forces have picked up. However, bringing back jobs and reducing the trade deficit will be a tougher task. (although jobs have set historic gains already) A Victim of His Own Success  Trump’s election unleashed the “animal spirits” that have been absent post-financial crisis. On the surface, this is good for the economy. The US is currently the only major country raising interest rates and enjoying […]

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Trump World: What Happens to Your Investments Now?

Trump World: What Happens to Your Investments Now?

Donald Trump’s victory came as the first surprise for many around the world. The reaction in the markets was the second surprise. Investors got what they expected for a few hours overnight as the ballot results came in; stocks were crushed and metals spiked higher. By mid-morning on Wednesday, however, stocks were surging and metals rolled over. Now, a few days post-election, commentators and “experts” have written stories to explain the action in markets. Some of these stories may even prove true. But at this early stage, investors should recognize that markets mostly reflect hopes, fears, and high frequency trading shenanigans. Reality tends to arrive later. All eyes are focused […]

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What in the World Happened to Gold and Silver Prices Last Week?

What in the World Happened to Gold and Silver Prices Last Week?

Gold and silver prices charged higher during the first 6 months of the year. They fell into a rut over the summer, and then hit the skids last Tuesday. Lots of bullion investors are wondering what in the world happened. There are three primary factors driving this price correction. The first is the strength in the U.S. dollar. The DXY index, which measures the dollar against other major world currencies, hit its highest levels since July. This surge, however, is not driven by safe-haven buying as it was immediately following Brexit. That sort of fear driven buying would almost certainly be boosting precious metals as well. Rather, investors are looking […]

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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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Zika, ZIRP, and NIRP Viruses

Zika, ZIRP, and NIRP Viruses

The Zika virus is the newest threat to humanity, especially pregnant women, so they say. Big Pharma is working feverishly to create a vaccine. Chances are the vaccine will be created, highly profitable, and Big Pharma will be “held harmless” for injuries to those who were vaccinated. Add GM mosquitos, birth defects, Brazilian Olympics, big profits, and the story becomes a huge distraction. John Rappoport has suggested there is more to the story. There is money to be made on vaccines and GM mosquitos, and money to be lost if sales of pesticides and other chemicals are reduced. It is clear in which direction the politics will lean. The Zika […]

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Here Is NIRP, Negative Interest Rates, Gold More Important Than Ever

Here Is NIRP, Negative Interest Rates, Gold More Important Than Ever

Bottom line: You should soon expect to start paying interest for the “privilege” of lending your savings to a bank! Gold and silver may be down, but after thousands of years of history as a reliable store of value, but they are anything but out

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