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Tag Archives: Treasuries

The Technicals for Gold: Yet Another Battle at $1800

Gold looked very strong through mid-November. Trends in September and October had been pointing to a breakout. The market delivered sending gold up through $1870. Unfortunately, hard resistance kept the bulls in check, despite repeated attempts to breakthrough.The previous price analysis presumed that a Brainard nomination at the Fed would be the catalyst needed to break through $1880. It also assumed that a Powell nomination, though expected, would bring gold back down to some...

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Peter Schiff: Gold Is an Inflation Safe Haven, Not Bonds

Gold and bonds are both considered to be safe havens. But in a recent podcast, Peter explained why bonds are not a safe haven in an inflationary environment. In fact, bonds – including US Treasuries – are risk assets when inflation is running hot. If you want safety from inflation, you need to buy gold.Another gold rally fizzled this week when bond yields pushed up, sparked by rising oil prices. Peter said nothing happening in the bond market should have been a drag on gold and silver....

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Fed Expands Record Holdings of US Debt

The Federal Reserve expanded its record holdings of US Treasuries in the fourth quarter of 2020 as it continued monetizing the massive federal debt.The Federal Reserve added another $253 billion to its Treasury holdings in Q4 according to the Fed’s Treasury International Capital data released on Feb. 16. That brought the central bank’s US bond holdings to $4.7 trillion. The Federal Reserve now holds a record 17.5% of all US debt.The Fed’s share of US debt load exploded from 9.3% in Q1...

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Foreign Share of US Debt Plunging; Fed Picking Up the Slack

Over the last year, the US government had borrowed over $4.2 trillion. The national debt now stands well above $27 trillion. There is no end in sight to the borrowing and spending and that raises a significant question: who is going to buy all of the bonds necessary to finance the government spending machine?Not too long ago, Uncle Sam could count on foreign investors to gobble up a big chunk of his IOUs, but times are changing. In 2008, foreign investors held more than half of the...

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The Fed Now Holds a Record Percentage of US Debt

The US government has borrowed $4.2 trillion in the last 12 months, pushing the total national debt to over $27 trillion. In order for Uncle Sam to borrow, somebody has to lend. So, who is buying all of these government bonds?Foreign and domestic investors, commercial banks and US government entities all buy US debt, but increasingly, the Federal Reserve is backstopping the market and making this borrowing binge possible.In Q3, the Fed bought $240 billion in US Treasuries. That brought its...

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The Fed Is Backstopping the Enormous Government Debt

The 2020 budget deficit surged passed $3 trillion in August even as the US government continues to borrow and spend at a torrid pace. Since March, the federal government has added $3.3 trillion to the national debt. That is on top of the $1.4 trillion in debt Uncle Sam piled on in the 12 months through February 2020.So, who is buying all of this government debt?There are a lot of buyers out there, but when you boil it all down, the US government wouldn’t be able to maintain this level of...

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China Signals It May Dump More US Debt

The Chinese are threatening to dump US Treasuries even as the federal government borrows money at a torrid rate. If the Chinese were to follow through, it could wreak havoc on the bond market and send interest rates surging despite the Federal Reserve’s best efforts to hold them down.The fiscal 2020 US budget deficit surged past $3 trillion in August. And Congress is considering more spending. Treasury Secretary Steve Mnuchin recently  called for more fiscal stimulus and said  “now is not...

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Peter Schiff: The Dollar and Bonds Are Bigger Bubbles Than Stocks

Peter Schiff recently called the stock market is the biggest bubble ever. But he says he should have qualified that by saying it’s the biggest bubble ever. There is an even bigger bubble floating out there – the dollar bubble. Peter talked about that in his podcast.Tuesday was another bad day for the US stock market. The worst carnage was in the NASDAQ. It fell 4% on the day and entered correction territory, meaning it’s dropped 10% off its high. And that happened in just three trading...

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Is Headline CPI Inflation “Fake News”?

The Federal Reserve just tweaked how it thinks about inflation, and this could have a huge impact on gold and gold mining stocks. Speaking at Jackson Hole this week, Fed Chair Jerome Powell unveiled an adjustment in U.S. monetary policy that would allow inflation to average 2 percent over a period of time. The implication is that the Fed would let increases in consumer prices overshoot the 2 percent target rate, which the U.S. has rarely touched since 2012 (if we’re going by the headline...

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Peter Schiff: US Treasuries Are Junk Bonds

July was a month for the record books.The Nasdaq and the S&P 500 had their highest monthly closes ever. Meanwhile, gold broke its all-time price record and is knocking on the door of $2,000 an ounce.On the flip side of stocks, gold and silver going up, the dollar going down. In fact, Peter said that’s a better way to look at it.It’s not gold that just set an all-time record high. It is the dollar that just set an all-time record low. You get less gold for your dollar...

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