By Michael Snyder Should central banks create money out of thin air and give it directly to governments and average citizens? If you can believe it, this is now under serious consideration. Since 2008, global central banks have cut interest rates 637 times, they have injected 12.3 trillion dollars into the global financial system through … Continue reading
By Samuel Bryan The mainstream financial media is like a stopped clock. Every once in a while, it stumbles into being right. Last week, we had a veteran trader on CNBC Futures Now telling everybody to buy gold as long as central banks continue their expansionary monetary policy, all the while swearing he isn’t a “gold-bug.” … Continue reading
By Paul-Martin Foss The Japanese response to negative interest rates was to buy personal safes. The German response is to pull money out of bank accounts and stick it in safe deposit boxes. Both are perfectly understandable reactions to the prospect of having to pay interest to a bank for holding deposits. It is particularly interesting … Continue reading
By Simon Black, Sovereign Man If you haven’t seen the 2015 Best Picture nominee, The Big Short, I strongly recommend it. The Big Short is based on Michael Lewis’ book which examines how such an extraordinary financial crisis gripped the world in 2008, and the handful of people who saw it coming. The movie opens asking a … Continue reading
By Joseph Y. Calhoun, Alhambra Investment Partners The Fed threw in the towel this week and acknowledged what the market has known for some time. The four rate hikes previously envisioned for this year are now just two – the dots are falling. According to the Fed, the economy is just fine, just not fine enough … Continue reading
By Simon Black, Sovereign Man Last year, amid all the madness in financial markets, financial historian and strategist Russell Napier joked about creating a “European high-yield capital guarantee fund.” His “high-yield” fund was nothing more than a secure room filled with physical cash, and a guy standing outside with a gun to guard it. As jokes tend … Continue reading
By Egon Von Greyerz, Goldbroker.com For anyone who has money in the bank today, it is virtually guaranteed that in the next 5-7 years either the bank will be gone or the money will be worthless, or probably both. Governments and Central Banks are now supreme experts in the total destruction of your money. They are … Continue reading
Monetary policy in the United States and other developed countries “is reaching its limits,” but the Federal Reserve has not yet run out of responses to a potential slowdown, former Fed Chairman Ben Bernanke wrote Friday in a blog post for the Brookings Institution, CNBC reports. The economist argued that a “balanced monetary-fiscal response” would better boost … Continue reading
By Nick Giambruno, Casey Research In the 1989 Batman movie, the Joker (played by Jack Nicholson) showers a crowded Gotham street with free money. In the scene, it looks like it’s raining hundred-dollar bills. The people love it. Little do they know, the money is actually a trap. Once the Joker has lured them into … Continue reading
By Jeffrey P. Snider, Alhambra Investment Partners Setting aside all other considerations and doubts about QQE, there was one factor that was supposed to be unassailable. That was the yen. QQE as a “money printing” operation was understood to act heavily on the exchange value of the Japanese currency so that it would drastically alter the … Continue reading