This makes the U.S. government bond rally, or bubble depending on your view, even more peculiar. You can't blame it on China propping the market with its standard dollar-recycling activities anymore, it seems.
Philly Fed comes in at -7.7, trouncing expectations of 7.0, and is the lowest number since August 2009, and first contraction since July 2009. Was the number even in the range of bearish expectations?
In 1982, President Reagan's Gold Commission wrote that gold could become necessary as currency again, especially if conditions came about like those we have now. Some believe he set a plan in motion, which others are working on today.
One of the most beloved phenomena of Fed intervention is the "miraculous" ramp up in stocks on days in which the Fed's Permanent Open Market Operations (POMO) occurred
Whatever the size, the rest of the world will see that the dollar is being printed in such quantities that it cannot serve as reserve currency. At that point wholesale dumping of dollars will result as foreign central banks try to unload a worthless
China is buying in Europe, Social Security is about to go cash flow negative, who exactly is going to be buying the mounds of new debt securities that the Treasury will soon start to issue?
"In just the last 45 months we have had $1.5 trillion dollars in extra treasury bonds, that have been sold after issuance, and I would like to know where the proceeds are being held"
Just a couple of charts from the St. Louis Fed to indicate what US banks are doing. First: holdings of government securities continue to go on a rocket ride.
Back-measure the CPI going to 1800, and they point to take away is that while there were inflationary spells in the past, what really got the ball rolling was the creation of The Federal Reserve and the dissolution of the gold standard.
Marc Faber, the author of “The Gloom, Boom and Doom Report”, recently warned CNBC that all of this intervention by the Federal Reserve is going to create a “final crisis” that will destroy the U.S. financial system….
The Federal Reserve is undertaking a "dangerous gamble" by keeping rates at near zero for so long, and it must start raising rates or risk damaging the nascent U.S. recovery, a top Federal Reserve official said on Friday.
Judge Andrew Napolitano has Ron Paul and Lew Rockwell on his FOX network show to discuss the federal reserve and our economy, and undeclared war's effect on the economy.
Rick gets wound up based on earlier disclosure by Bill Gross that if the government guarantee of the GSEs were removed, he would only participate in the mortgage market if there was 30% down payments by first time homebuyers...
“Crossing the 90% debt/GDP threshold is the equivalent of crossing the proverbial Rubicon of economic growth. It’s a point from which it’s almost impossible to return,” states the article, adding that the market has not responded to quantitative...
"US credit risk is huge and America has two options, either default or let the currency depreciate substantially against currencies such as the yuan and the rouble," he explained.
Gold turned higher on Wednesday, shrugging off a 1 percent rise in the dollar versus the euro, as concerns over the outlook for the U.S. economy and the potential for further monetary easing sparked haven buying of the metal.
We have 78 million baby boomers who, when fully retired, will collect benefits from Social Security, Medicare, and Medicaid that, on average, exceed per-capita GDP. The annual costs of these entitlements will total about $4 trillion...
The Fed will reinvest earnings from maturing mortgage debt into US Treasury debt, with an eye toward keeping long-term borrowing rates low. The move aimed to reassure investors who are hoping the Fed will do more to spur the economy and observers who
At the end of its meeting Tuesday, the Fed said it will use money from its investments in mortgage securities to buy government debt on a small scale. That could help nudge down long term rates on mortgages and corporate debt but wouldn't have a dram
Strangely though, some mainstream economists and analysts still contend that America will never face consequences for its fiscal debauchery. Why do they believe this despite all the evidence to the contrary? Because of a magical machine called a...
Gerald Celente is mad.
People will lose faith in the dollar, and try to get out of it—at all costs, all at once. Hyperinflation is not the economy overheating, like regular inflation—hyperinflation is when nobody wants to be caught dead with a currency.
This chart pack is likely to be fresh in the minds of every FOMC member as they consider their votes and views today.
The U.S. dollar fell against emerging Asian currencies on Monday on growing expectations the Federal Reserve will have to buy more bonds to support the flagging economy, helping to also lift commodity prices and equities.
If the government fears the “recovery” will be further impinged by higher energy prices then look for “quantitative easing” to become both the driving force of our economic policy and poison that finally kills the dollar.
Once all those who are now holding large cash balances, decide cash is not the place to be, because of an inflation threat (and I am not talking those just holding physical currency but anything in M2), then all hell breaks loose on the inflation...
Luckily, in the painful but now inevitable end, the population will rid itself of the Federal Reserve and of the false economic religion of Keynesianism, but not before the current wealth for 99% of the population, both rich and poor, is wiped out...
We've had more and more signs of potential deflation and the Fed is terrified of that...They've got to come up with something inventive, something as they call it, 'new quantitative easing.' And yet that brings the concern if they...
Thanks to Nassim Nicholas Taleb, it is now clear that hustlers, like former Fed VC, Alan Blinder, are promoting a loophole that allows multi-millionaires and billionaires to get every penny they have insured by the FDIC, damn the limits.
To think this economy can go only down a deflationary path is a serious mistake. Anyone betting on Mish's scenario that deflation is absolutely the road ahead is making a very serious mistake.