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Tag Archives: Original Analysis

Jerome Powell the Tough Guy?

Suddenly, Fed chair Jerome Powell is a tough guy.Is he though?Earlier this week, Powell delivered what called “his most muscular speech to date” on the battle against inflation.The central bank launched its war on inflation at the March FOMC meeting with an unimpressive first shot. It raised interest rates by a quarter-point. Peter Schiff called it the most anticipated and least significant rate hike ever. I compared it to dropping leaflets on the enemy saying, “We really mean it...

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From the Silver Screen to a Gold Mine?

AMC Theaters bought a gold mine last week.A literal gold mine.The movie theater company invested $27.9 million to purchase 22% of Hycroft Mining Holding Corporation and its 71,000-acre Hycroft Mine in northern Nevada. The mine has an estimated 15 million ounces of gold deposits and some 600 million ounces of silver deposits.Metals investor Eric Sprott will put in another $27.9 million, bringing the total investment in the small mining company to $56 million.As you may recall, AMC was one...

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A Petroyuan Would Be a Kick in the Gut for the Dollar

Last week, I asked the question: is the US undermining the dollar’s credibility?It appears the answer is — yes.In another blow for dollar dominance, Saudi Arabia is reportedly considering pricing at least some of its Chinese oil sales in yuan.According to the , the move would “dent the US dollar’s dominance of the global petroleum market and mark another shift by the world’s top crude exporter toward Asia.”The “petrodollar” serves as a crucial support for the US dollar.The majority of...

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The Fed’s Feckless Inflation Fight

The Fed is supposedly about to step into the ring to fight inflation. But all indications are it’s going to be a feckless fight. Gold flirted with an all-time record high last week driven in part by safe-haven demand due to the geopolitical uncertainty caused by Russia’s invasion of Ukraine. But as the war drags on and the panic subsides, that safe-haven bid seems to be unwinding.Now investors have turned their attention back to the Fed. When the war broke out, people thought it could...

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Is the US Undermining the Dollar’s Credibility?

The credibility of the dollar is taking some self-inflicted blows. And the world is watching.Could this hasten the end of the greenback as the world’s reserve currency?It started long before recent events in Ukraine. The Federal Reserve printed trillions of dollars out of thin air in response to COVID-19. This devalued the dollar as evidenced by the surge in prices over the last year. This was the predictable result of creating money out of thin air and handing it out to spend. More money...

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Who Cares About the Trade Deficit? We All Should

The trade deficit shattered records in 2021. Things didn’t slow down any as we rolled into 2022. The January trade deficit hit another all-time record high.But nobody really seems to care.We should.As Peter Schiff said last fall, we can’t just ignore these trade deficits forever.People have been lulled into a false sense of security that it doesn’t matter anymore. Well, the reality is it matters more than ever. It’s precisely because the markets have decided, based on Fed intervention,...

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The Inflation Blame Game

Now inflation is Russia’s fault. Or is it greedy businesses pushing up prices? Maybe a combination of the two.It seems that government officials and central bankers are looking everywhere for a place to pin the blame for inflation except the one place they need to look — in the mirror. I’m already seeing headlines about how Russia’s invasion of Ukraine is causing inflation. CBS broadcast this storyline on the first day of the invasion. As Peter Schiff put it in a recent podcast, Russia is...

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Could Economic Warfare Backfire on the US?

Economic sanctions serve as a powerful foreign policy tool for the US government. But could this ultimately backfire on the US?Over the last several years, many countries have made a concerted effort to limit dependence on the US dollar. The economic warfare waged against Russia reveals exactly why.The US hit Russia with a round of economic sanctions after Russian President Vladimir Putin recognized two breakaway republics in Ukraine and announced he would send troops into those regions....

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St. Louis Fed Pres. Bullard Lets the Cat Out of the Bag: The Fed Doesn’t Have the Stomach for an Inflation Fight

St. Louis Federal Reserve President James Bullard unwittingly let the cat out of the bag and revealed the central bank doesn’t have the stomach to do what’s necessary to take on surging, persistent inflation. After January’s CPI data came in even hotter than expected, Bullard shocked markets by calling for a full 1% rate hike by July. As CNBC reported, his comments sent stocks “on a wild ride” as futures markets began to price in as many as seven quarter-point rate hikes in 2022. That...

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ETFs Globally Chart Healthy Inflows of Gold to Start 2022

Global ETF gold holdings started off 2022 with a healthy increase.Global gold ETFs recorded net inflows of 46.3 tons last month as gold investment demand returned with decades-high inflation and heightened market volatility. Total ETF gold holdings globally ended January at 3,615.6 tons, according to the latest data from the World Gold Council. North American funds led the way in January, adding 49 tons of gold.  A significant jump in the gold price leading up to gold ETF options...

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