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Tag Archives: Monetary Policy

Nixon Closed the Gold Window and All I Got Was This Lousy National Debt

This year will mark the 50th anniversary of President Richard Nixon severing America – and the world – from its last tie to the gold standard. The rapid devaluing of the dollar is the most obvious result. But another consequence has been an enormous national debt that continues to grow at a staggering pace. Most people don’t realize it, but this is a direct and intentional result of the current fiat money system.In 1971, Nixon put the final nail in the coffin of the gold standard, but...

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Peter Schiff: You’ve Got to Know When It’s Time to Leave the Party

For months, Peter Schiff has been warning that the stock market is a bubble. It is detached from any political or economic reality and is being driven by Federal Reserve monetary policy. During an interview on NTD Business News, Peter said a lot of investment advisors know this too, but they are advising people to stay in because the bubble has more room to grow. But he warned this isn’t good advice. When it comes to bubbles, you have to know when to leave the party.Peter said it’s...

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Ol’ Joe Takes the Wheel: SchiffGold Friday Gold Wrap Jan. 22, 2021

Joe Biden took the country’s wheel on Wednesday. For some, it was a day of celebration. And for some, it was a day of mourning, depending on your political perspective. But what is really in store for us in the Biden years? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey considers the economic path that lies ahead. He argues that while the driver has changed, the car is still heading in the same direction with Biden’s foot on the accelerator.The SchiffGold Friday Gold...

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Monetary Policy: AIT seems on target

Last year, the Federal Reserve announced a policy termed “flexible average inflation targeting.” The basic idea is that the Fed commits to insuring that PCE inflation will average roughly 2% over an extended period of time, and that any short run discrepancies will be offset by future overshoots in the opposite direction. Although they did not specify a starting point, it’s generally assumed to be roughly the beginning of the decade (say January 2020.) Thus inflation...

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European Central Bank Takes Bond Market Manipulation to the Next Level

Peter Schiff recently explained how the Federal Reserve has rigged the US Treasury market. Well, the European Central Bank has taken bond market manipulation to the next level.According to a report, the ECB is buying bonds to control the yield spread between debt issued by various EU countries. As a result of this central bank mechanization, the spread between the yields on German and Italian bonds has remained “remarkably stable” despite the Italian government teetering on the verge of...

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Peter Schiff: Inflation Is Really a Tax

Peter Schiff recently spoke at the . He explained why the coming financial crisis will be much worse than 2008, and how the Federal Reserve and the US government are driving us toward this crisis with their inflationary monetary policy.Peter is well-known for predicting the 2008 financial crisis. Today he says we’re on the cusp of an even worse meltdown.I can assure everybody today that the crisis that’s coming is going to be far worse than anything that was experienced in 2008.”[embedded...

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Peter Schiff: Economic “Rescue” Plan Like Throwing a Drowning Man an Anchor

President-elect Joe Biden unveiled his massive stimulus plan last week touted as the “American Rescue Plan.” In his podcast, Peter Schiff said it was more like throwing a drowning man an anchor.Before Biden announced his stimulus plan, Jerome Powell spoke and reassured everybody that the Fed will continue with its loose monetary policy. He emphasized that the central bank will hike interest rates “no time soon.” He also pushed back against some of the other Fed...

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Spend! Spend! Spend! SchiffGold Friday Gold Wrap Jan. 15, 2021

The US government ran the biggest December deficit in history last month and there is no end in sight to the borrowing and spending. President Biden unveiled a new $1.9 trillion stimulus plan this week. So what? Why does it matter? Can’t this “rescue the economy?” Host Mike Maharrey talks about all of the spending and the money printing necessary to support it on this week’s Friday Gold Wrap podcast.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious...

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Daniel Kaufmann on Swiss monetary policy

My biggest frustration over the past decade is how often I see economists misdiagnose the stance of monetary policy, either reasoning from price changes or reasoning from quantity changes. The “reason from a price change” problem has been discussed extensively in this blog, so today I’ll focus on reasoning from a quantity change. Many economists assume that a country that has done extensive QE has, ipso facto, adopted an expansionary monetary policy. That is certainly...

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The Perfidious Effects of Money Printing

There were a number of inauspicious records set in 2020 and the impacts will continue to reverberate through the economy in the future.The Federal Reserve created money at a record rate. It also increased its balance sheet to record levels. And not to be outdone, the US government set a budget deficit record.These three records were actually linked. The money printing and expansion of the Fed balance sheet were necessary to monetize the massive federal debt. And there is no sign that...

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