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The Fed recently announced that it would keep interest rates low through 2014 – which in Fed-speak basically amounts to “forever.” And how do they intend to keep rates low? Well there’s only one way to do it, and that’s by purchasing the long-end of the yield curve with digitally created Federal Reserve notes. Our […]
One of my favorite “conspiracy theories” of late is one that the Fed has already quietly started QE3, and just hasn’t told anyone publicly. One school of thought is that this is why gold is going ballistic right now – you can fool the public, but you can’t fool the markets! Bud Conrad, Casey Research’s […]
John Mauldin included a chapter from his new book Endgame in his newsletter this week, and it’s a good one, taking a thorough look at historical examples of Inflation and Hyperinflation. The most interesting part of the chapter for me was its conclusion – there’s a quote from historian Peter Bernholz, the man who literally […]
Dallas Fed CEO Richard W. Fisher had some strong words against further monetary easing as a means of putting people back to work: But it is worrisomely clear that the task of putting millions of unemployed and underemployed Americans back to work will take an anguishing amount of time. I do not, however, feel that […]
DailyWealth’s Dr. David Efrig likes to keep an eye on the M1 multiplier (as do I) as an indicator of whether or not inflation is in control: The M1 money multiplier monitors the amount of money individuals and businesses have to spend on consumption or investment… relative to the money available for banks to lend. […]
Ask anyone who remembers the 1970’s – there’s no inflation like wage inflation, which has a nasty habit of perpetuating across the economy at large. With Chinese leaders about to convene for some chalk talk around their next five year plan – and raising wages near the top of their agenda – what does this […]
In Bill Gross’ latest commentary, he wonders aloud who will buy Treasuries when the Fed stops QE2 at the end of June. What an unbiased observer must admit is that most of the publically issued $9 trillion of Treasury notes and bonds are now in the hands of foreign sovereigns and the Fed (60%) while […]
Marc Faber gave a stellar 30+ minute interview for The McAlvany Weekly Commentary. You can read the transcript here, and listen to it here. Of the many interesting (and unique) points Faber made, one that stuck out was his claim that 80% of the US budget is basically untouchable: David: What measures might the Fed […]
Wow – Dave Rosenberg writes today: Remember, there has been an 86% correlation between the movements in the Fed balance sheet and in the S&P 500 since the onset of QE two-years ago. Source: Breakfast With Dave Indeed, it took Bernanke one practice swing, but he got pretty good at this QE thing pretty fast…in […]
Marc Faber talked to the BBC a few weeks back, sharing his thoughts about what would trigger QE3, why he is still advising people to accumulate gold, and the bubble in China. Here’s the interview (audio only): Instead of investing directly in China, Faber recommends investing in things that China needs – such as industrial […]
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