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Tag Archives: Key Gold Headlines

Does the Fed Has the US Economy on Life Support?

The Fed did exactly what markets expected during the September FOMC meeting and lowered interest rates another 25 basis points. It was the second cut of the year and pushed the interest rate down to to the range of 1.75 – 2%.And yet we’re told that this is the economy is “great.”What gives? Economist Robert Murphy said things might not be so great. In fact, it appears the central bank has basically put the economy on life support.Despite the Fed’s short-lived effort to normalize rates in...

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Most US States Drowning in Red Ink

The federal government continues to pile up debt at a staggering rate. In August alone, the US government added $450 billion to the national debt. But Uncle Sam isn’t the only one who doesn’t have enough money to pay his bills. Forty state governments are also drowning in red ink.Total state government debt now stands at $1.49 trillion with 40 states lacking sufficient funds to pay their bills according to Truth in Accounting’s (TIA) Financial State of the States report.At the end of the...

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US Government Adds Almost Half a Trillion Dollars to National Debt in One Month

The fiscal year budget deficit surged passed $1 trillion last month. Spending deficits necessarily mean more government borrowing and we’re seeing that in the numbers as well. Uncle Sam’s outstanding public debt grew by $450 billion in August alone.The national debt stood at $22.02 trillion on Aug. 1 and surged to $22.47 trillion as of Aug. 27. As SRSrocco noted, the huge jump in the debt in August was partly due to the US Treasury making up for lost time. The debt ceiling put a crimp on...

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Indebted US Consumers Losing Confidence

With debt up to his eyeball, the US consumer seems to be losing confidence in the US economy.Last month, Spencer Schiff wrote an article warning about declining consumer confidence, writing, “any shift in consumer psychology/behavior could knock a critical support out from under our economy.”In fact, consumer spending makes up about 70% of US GDP. If Americans stop shopping, the economy grinds to a halt.Meanwhile, consumer debt continues to skyrocket. In effect, US consumers are propping...

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Fed Ups Repo Ante; Injects Longer-Term Cash into Banking System to Hold Rates Down

The Federal Reserve upped the ante in its efforts to hold short-term interest rates down this week, injecting longer-term cash into the financial system.Last week, the New York Fed began running repurchase operations in an effort to inject liquidity into the financial system. The bank’s repo operations started last Tuesday involving about $53 billion in debt instruments and continued through the week. The New York Fed injected over $270 billion in cash into the system last week and...

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Fed Runs Repo Operations; Is It Baby-Stepping Toward QE?

In a move “Bond King” Jeffrey Gundlach said could be a prelude to the next round of quantitative easing, the New York Fed conducted a repurchase operation involving about $53 billion in debt instruments on Tuesday. The move to designed to unplug the financial system’s “plumbing” with an injection of cash was the first such move since the financial crisis a decade ago.The purchases involved about $40.8 billion of Treasurys, $11.7 billion in mortgage-backed securities and $600 million in...

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Another Month, Another Record for Consumer Debt

Americans continue to drive the economy along spending money they don’t have. Consumer debt increased yet again in July, setting another record, according to the latest data released by the Federal Reserve.Total consumer debt surged $23.4 billion in July, driven by a huge jump in credit card balances. The big rise in consumer indebtedness took analysts by surprise. said the increase “exceeded all estimates” in a survey of economists. Overall, consumer debt increased by an annual rate of...

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Budget Deficit Shoots Past $1 Trillion for Fiscal 2019

The federal government continues to spend money at an insane rate and is running up budget deficits reminiscent of the Great Recession era.With one month left to go, the federal budget deficit for fiscal year 2019 eclipsed $1 trillion in August, according to Treasury Department data released last Thursday.The budget shortfall for the month of August came in at $200.3 billion. Last month, Uncle Sam spent $428.3 billion and took in $228 billion in revenue.The pundits in the mainstream media...

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Corporations Piling Up Debt at Record Pace

Corporations are piling on the debt.Last week, companies borrowed $74 billion in the US investment-grade bond market. It was the largest corporate debt increase for any comparable period since they started tracking such things in 1972.According to , there is no sign the borrowing binge will let up. Analysts expect corporations to borrow another $50 billion through the rest of the month.Borrowing activity is also spilling over into junk bonds and leveraged loans as well. There was a $16...

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Russia’s Gold Bet Paying Off; Reserves Top $100 Billion

As put it, Russia’s bet on gold looks better every month.The Russian Central Bank’s gold reserves have topped $100 billion thanks to continued buying and surging prices.Russia added another 12.2 tons of gold to its hoard in July. That pushed its purchases on the year to just over 106 tons. Russia’s gold stash now totals around 2,200 tons and accounts for 20.7% of its total reserves. The country has the fifth-largest gold-holdings in the world.The Russians have been buying gold for the...

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