Thursday , February 21 2019
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Tag Archives: Federal Reserve

My Fancy-Schmancy “Fed Hawk-o-Meter” Ticks Down, Still Red-Lines. In Passing, Fed Plants Seed for Removing “Patient”

Oh dude, glad no one saw it. My fancy-schmancy Fed Hawk-o-Meter checks the minutes of the Fed meetings for signs that the Fed believes the economy is strong and that “accommodation” needs to be further removed by hiking rates, or that the economy is strong but not strong enough to raise rates further, or that the economy is spiraling down to where rates need to be cut. It quantifies and visualizes what the Fed wishes to communicate to the markets. In the minutes of the January 29-30...

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The Pause Is on and Now the Mainstream Is Starting to Talk Interest Rate Cuts

Right after the last Federal Reserve Open Market Committee meeting, Peter Schiff said the “Powell Pause” won’t be enough to save the stock market and head off a recession. He said ultimately, the central bank would have to cut interest rates and launch another round of quantitative easing.Well, it seems the mainstream is starting to catch up with Peter’s thinking. Yesterday, ran an article asserting that “instead of pausing, the central bank may need to start cutting interest rates to...

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Peter Schiff: The Real National Emergency Isn’t At the Border – It’s the Debt

On Friday. Pres. Trump declared a national emergency. Based on that declaration, the president will reallocate $6.5 billion from other government programs to fund a border wall.In his podcast on Friday, Peter Schiff said there is indeed a national emergency, but it has nothing to do with the border.Of course, the real national emergency is not the lack of a wall, the failure to build a wall, but building up the national debt.”Just last week, the US Treasury said the national debt has...

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Jim Grant Talks About the End of Balance Sheet Reduction and Negative Interest Rates (Video)

In a recent interview with CNBC’s Rick Santelli, investment guru Jim Grant talked about the Fed’s sudden about-face when it comes to its balance sheet reduction program, as well as the phenomenon of negative interest rates. In short, Grant said the central banks have done us “no favors.”Federal Reserve Governor Lael Brainard said it was time to end quantitative tightening. During a CNBC interview last week, she said, “balance sheet normalization process has really done the work it was...

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What Happens When More QE Fails to Reverse the Recession?

The Federal Reserve’s sudden return to “accommodative” dovishness in response to the stock market’s swoon telegraphs its intent to fire up QE once the recession kicks into gear. QE (quantitative easing) are monetary policies designed to ease borrowing and the issuance of credit, and to prop up assets such as stocks and real estate. The basic idea is that the Fed creates currency out of thin air and uses the new money to buy Treasury bonds and other assets. This injects...

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Borrowing into Oblivion: SchiffGold Friday Gold Wrap 02.15.19

The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.America has borrowed itself into oblivion. In this episode of the Friday Gold Wrap, host Mike Maharrey talks about the massive levels of debt, how it relates to Fed policy and where this road is leading. He also covers some not so good news on the economy that came out this week and the latest...

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Peter Schiff: Who’s Going to Pay for the Green New Deal? Because You Can’t Print Wealth

In his most recent podcast, Peter Schiff dug into the politics behind the Green New Deal and specifically asked a key question: who is going to pay for all this?Peter said there is a political tornado on the horizon.I think stocks will be lower when voters go to potentially reelect Trump. The markets will be lower than where they were when he was initially elected and since Trump has hung his presidency on the fortunes of the stock market, if those fortunes are no longer...

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The US Government Has Spent Itself Inbetween a Rock and a Hard Place

As we pointed out in an article last week, the US federal government has added $1.5 trillion to the national debt over the last 12 months. As a result, the US Treasury Department is flooding the market with bonds. Meanwhile, the biggest buyers of US debt – China, Japan and the Federal Reserve – are shrinking their Treasury holdings. For the past several months, we’ve been saying this is a big problem for the US government that most people are overlooking. And we aren’t the only ones...

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Fed Considering Using Quantitative Easing “More Readily”

Once upon a time, quantitative easing was considered an “extreme measure.” But it may become more commonplace. According to a report, central bankers in the US are discussing whether they should turn to that “tool” more often.In other words, the Fed may make the “extreme” the norm.Last Friday, San Francisco Federal Reserve Bank President Mary Daly said they were discussing whether QE bond-buying should be an emergency measure only, or if the central bank should use the tool more...

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The Green (And Red) New Deal: SchiffGold Friday Gold Wrap 02.08.19

The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.Democrats led by Alexandria Ocasio-Cortez rolled out their “Green New Deal” this week. In this episode of the Friday Gold Wrap, host Mike Maharrey talks about the political and economic ramifications. He also tells you about how Janet Yellen sounded just a tiny bit like Peter Schiff this week....

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