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
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 Mike Whitney Last week, European Central Bank chief Mario Draghi announced a much bigger and wider-ranging stimulus package than anyone had expected. Unfortunately, the ECB’s bond buying program will have no impact on employment, business investment, inflation, lending or growth. It will, however, create a temporary incentive for corporations to buy back more of … Continue reading
By Jeffrey P. Snider, Alhambra Investment Partners The Bank of Japan had previously “disappointed” last December when it failed to announced more “stimulus.” Setting aside who might actually have been frustrated by the lack of renewed distortions, the Japanese central bank did make some minor alterations to its QQE regime at that time. They expanded the … Continue reading
By Jeffrey P. Snider, Alhambra Investment Partners Europe is not the only location seeking out more “inflation”, as almost any central bank around the world except Banco do Brasil would do anything to find it. The ECB provided more emphasis in their panicked escalation today. In China, by contrast, consumer prices moved to +2.3% in February, … Continue reading
By Brandon Smith Many investors today are not very familiar with market history and tend to live only in the day-to-day mainstream narrative while watching little red and green graphs move up and down. This is not so much an issue in a relatively stable economic environment. The problem is, today we live in the most … Continue reading
By Mac Slavo, SHTFPlan.com In 2011, as gold prices rocketed to $1900 and oil was trading above $120 a barrel, there were few analysts who saw anything but further gains. But Marin Katusa of Katusa Research had a different opinion. At a major commodity conference Katusa, to boos and jeers from the audience, held strong to his … Continue reading
By Eugen von Böhm-Bawerk It is common knowledge by now that Federal Reserve Chairman Alan Greenspan oversaw, enabled and approved of, a major transition in the US economy. His infamous “Greenspan-put” in which his actions at the central bank would be driven, if not dictated, by the whims of financial markets, clearly led to higher asset … Continue reading
By James Corbett, TheInternationalForecaster.com An utterly insane bubble of market insanity directly blown by the central bank? Check. The sudden and cataclysmic popping of that bubble? Yup. A rush to prop up the “too big to fail” banks by papering over their credit defaults with government promises (at taxpayers’ expense, of course)? Old hat to the … Continue reading
Nearly a year ago, Bank of Japan governor Haruhiko Kuroda described the unlikely inspiration behind Japan’s unprecedented monetary stimulus: Peter Pan. I trust that many of you are familiar with the story of Peter Pan, in which it says, ‘the moment you doubt whether you can fly, you cease forever to be able to do … Continue reading