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 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 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 Ryan McMaken For years, the US government has been able to finance it’s debt at cheap interest rates because there have always been plenty of enthusiastic buyers. As long as the Chinese, the Japanese, and others continue to hold and buy large amounts of US debt, then the US government doesn’t have to raise the … Continue reading
By Jeffrey P. Snider, Alhambra Investment Partners The idea that China was transitioning to a “consumer led” economy was always a precarious wish. Doubts start with the timing, as it wasn’t until 2009 that it was even proposed, but the idea really didn’t gain any traction until after 2012. In other words, the only time Chinese … 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
By Jeffrey P. Snider, Alhambra Investment Partners If there is any doubt as to the confusion inside the FOMC, one needs only to examine its models. The latest updated projections make a full mockery of both monetary policy and the theory that guides it. Ferbus and the rest don’t buy the labor market story, either, which is … Continue reading