06.24.17- Four Reasons Central Banks are Wrong to Fight Deflation
Jörg Guido Hülsmann

The word “deflation” can be defined in various ways. According to the most widely accepted definition today, deflation is a sustained decrease of the price level. Older authors have often used the expression “deflation” to denote a decreasing money supply, and some contemporary authors use it to characterize a decrease of the inflation rate. All of these definitions are acceptable, depending on the purpose of the analysis. None of them, however, lends itself to justifying an artificial increase of the money supply.

The harmful character of deflation is today one of the sacred dogmas of monetary policy. The champions of the fight against deflation usually present six arguments to make their case. Read More

06.23.17- Get Ready for ‘QT1’: A First Look at the Federal Reserve’s Hidden Policy
James Rickards

The Federal Reserve is now setting out on a new path for quantitative tightening (QT) after nine years of unconventional quantitative (QE) easing policy. It is the evil twin of QE which was used to ease monetary conditions when interest rates were already zero.

First, it is important to examine QE and QT in a broader context of the Fed’s overall policy toolkit. Understanding the many tools the Fed has, which of them they’re using and what the impacts are will allow you to distinguish between what the Fed thinks versus what actually happens.Read More

06.22.17- Albert Edwards: "Citizens Will Soon Turn Their Rage Towards Central Bankers"
Tyler Durden

During the populist revolt of 2016, which first led to the "shocking outcomes" of Brexit and then Trump, we cautioned that these phenomena were merely the "silent majority" of the developed world's middle class expressing their anger and frustration with a world that has left them - and their real disposable income - behind, while rewarding the Top 1% through policies that have led to a relentless and record ascent in global asset prices, largely the purview of the world's wealthiest. More recently, we also noted that it was only a matter of time before this latest "revolt" fizzled, as the realization that changing one politician with another would achieve nothing, and anger shifted to the real catalyst behind growing global inequality (and anger): central banks. Read More

06.21.17- The Fed Rate Hike and Gold – Precious Metals Supply and Demand
Keith Weiner

Shrinking the Balance Sheet?

The big news last week came from the Fed, which announced two things. One, it hiked the Fed Funds rate another 25 basis points. The target is now 1.00 to 1.25%, and there will be further increases this year. Two, the Fed plans to reduce its balance sheet, its portfolio of bonds.

Assets held by Federal Reserve banks and commercial bank reserves maintained with the Fed – note that while asset purchases and bank reserve creation are connected, the connection is loose (there are other factors influencing movements in reserves as well). [PT] – click to enlarge. Read More

06.20.17- Democracy Is A Front
For Central Bank Rule

Paul Craig Roberts

Several years ago when the Federal Reserve had its Fed funds rate at zero to 25 basis points (one-quarter of one percent—0.25%), there was a great deal of talk, somehow presented as urgent, whether the Federal Reserve would raise interest rates.

RT asked me if the Fed was going to raise interest rates. I answered that the purpose of low interest rates was to restore the solvency of the balance sheets of the “banks too big to fail” by raising debt prices. The lower the interest rate, the higher the prices of debt instruments. The Fed drives bond prices up by purchasing bonds, and the Fed raises interest rates by selling bonds, or by purchasing fewer of them than previously. Read More

06.19.17- Here Comes Quantitative Tightening
Peter Schiff

All of a sudden the Fed got a little tougher. Perhaps the success of the hit movie Wonder Woman has inspired Fed Chairwoman Janet Yellen to discard her prior timidity to show us how much monetary muscle she can flex when the time comes for action.

Although the Fed's decision this week to raise interest rates by 25 basis points was widely expected, the surprise came in how the medicine was administered. Most observers had expected a “dovish” hike in which a slight tightening would be accompanied by an abundance of caution, exhaustive analysis of downside risks, and assurances that the Fed would think twice before proceeding any farther. But that’s not what happened. Instead Yellen adopted what should be viewed as the most hawkish policy stance of her chairmanship.
Read More

06.17.17- Central Banks Are Driving Many to Cryptocurrencies
Demelza Hays

Two years ago, Bitcoin was considered a fringe technology for libertarians and computer geeks. Now, Bitcoin and other cryptocurrencies, such as Ethereum, are gaining mainstream adoption. However, mainstream adoption has been propelled by financial speculation instead of by demand for a privately minted and deflationary medium of exchange. After the Fed’s rate hike this week, Bitcoin and alternative cryptocurrencies, such as Ethereum and Dash dropped in value instantly. Bitcoin, for example, dropped by approximately 16% in value while other coins dropped by approximately 25%. However, Bitcoin’s price recovered to the previous high within 18 hours. Read More

06.16.17- Good Question
James Quinn

It’s funny how facts are conveniently ignored by the mainstream media pundits, paid to mouth the narrative put forth by their corporate bosses. A critical thinking individual might look at the chart below and possibly question the validity of the economic growth mantra spewed by the politicians, central bankers and mass media. As anyone with two eyes can see, the central bankers of every developed country in the world have kept real short term interest rates negative for the last eight years and continue to do so.

The last time the U.S. Federal Funds rate was 1%, the 10 Year Treasury rate was 4%. In a normal free market system, real interest rates would be 2% to 3% above CPI. The fraud and dysfunction of the current global financial system is made unequivocally clear in the chart. Read More

06.15.17- Is the Central Bank’s Rigged Stock Market Ready to Crash on Schedule?
David Haggith

We just saw a major rift open in the US stock market that we haven’t seen since the dot-com bust in 1999. While the Dow rose by almost half a percent to a new all-time high, the NASDAQ, because it is heavier tech stocks, plunged almost 2%. Tech stocks nosedived while others rose to create new highs. Is this a one-off, or has a purge begun for the tech stocks that have driven the nation’s third-longest bull market?

Yesterday’s dramatic “rotational” divergence between tech stocks and the rest of the market, which as Sentiment Trader pointed out the only time in history when the Dow Jones closed at a new all time high while the Nasdaq dropped 2% was on April 14, 1999, stunned many and prompted Bloomberg to write that “a crack has finally formed in the foundation of the U.S. bull market. Now investors must decide if any structural damage has been done.” (Zero Hedge) Read More

06.14.17- Who Controls All of Our Money?

View Video

06.13.17- Massive Central Bank Asset Purchases: Last Ditch Effort To Save Economy & Cap Gold Price
Steve St Angelo

The Central banks bought a staggering $1.5 trillion in assets in the first five months of the year to keep the economy from imploding while at the same time, capping the gold price.  Yes, it’s true…. $300 billion a month of Central bank asset purchases pushes up STOCK, BOND and REAL ESTATE values while it depresses or caps the gold (or silver) price.

The amount of Central bank asset purchases are now reaching insane levels.  And they have to.  It is the same thing as being a drug addict.  Once, someone starts down the road of drug addiction, it takes more and more of the drug to reach the same effect.  Thus, when Central banks started purchasing assets to prop up the market, they have to continue, and they have to continue buying even more. Read More

06.12.17- The Fed Hasn’t Done This in 80 Years
Birch Gold Group

Next Wednesday, the Fed will likely press forward on its mission to raise rates and cut its balance sheet. But, assuming it makes this move (as widely expected), it will be the first time in 80 years it has pursued this kind of policy amidst such tumultuous economic conditions.

Let’s examine what makes the Fed’s current policy plan so historic, how it could impact markets in coming months, and what Americans can do in response…

The Fed’s Toolbox: QE vs. QT Read More

06.10.17- In Washington, Is the Glass(-Steagall) Half Empty or Half Full?
Nomi Prins

Donald, listen, whatever you’ve done so far, whatever you’ve messed up, there’s one thing you could do that would make up for a lot.  It would be huge!  Terrific!  It could change our world for the better in a big-league way!  It could save us all from economic disaster!  And it isn’t even hard to grasp or complicated to do.  It’s simple, in fact.  Reinstitute the Glass-Steagall Act. Let me explain.

In the world of romance, if you break up with someone, it’s pretty simple (emotional complications aside).  You’re just not together anymore. In the world of financial regulation, it used to be as simple as that, too. It was like installing a traffic light at a dangerous intersection to avoid deaths. In 1933, when the Glass-Steagall Act was passed, it helped break up the biggest banks of the day and for good reason: Read More

06.09.17- Curve Inversion and Chaos to Begin by December 2017
Michael Pento

The bounce in Treasury yields witnessed after the election of Donald Trump is now decaying in the D.C. swamp. If the Fed continues to ignore this slow growth and deflationary signal from the bond market and continues along its current rate hiking path, the yield curve will invert by the end of this year and an equity market plunge and a recession is sure to follow.

An inverted yield curve, which has correctly predicted the last seven recessions going back to the late 1960's, occurs when short-term interest rates yield more than longer-term rates. Why is an inverted yield curve so crucial in determining the direction of markets and the economy? Read More

06.08.17- "Forget 'Super Thursday',
Today Is About Central Banks"

Bill Blain

“Since 2007, 68% of stock market returns are tied to political events…”

Today is not about UK elections. It’s too late to do or say anything except anticipate and hedge the result – if you care to do so. Personally, I reckon a blowout Tory victory might not be the panacea for sterling many expect. It will simply confirm Hard Tough Fraxious In-Yer Face Brexit – and may well prove a sell-the-fact moment for the Pound.

Today is sort of about Central Banks. Read More

06.07.17- Less Than Zero:
How The Fed Killed Saving

Adam Taggart

It destroyed the incentive to do it

The other day I was in my local branch of a Too Big To Fail bank where I have a few accounts. One of them is a savings account in which I keep some of my "dry powder" cash stored.

It had been a while since I had checked what kind of return the savings account offered. I knew it was pretty low, but there have been a few Fed rate hikes since the last time I had checked. So I asked the teller to look up the current rate the account was yielding.

Any guesses? Read More

06.06.17- "This Only Ends When
The Bond Market Pukes"

Kevin Muir

We all get it wrong, including Bass, Yusko, Icahn, Dalio, and [insert whatever guru you want in here]. So when you take solace in the fact the stock market is running higher without you, I would be weary of consoling yourself that you are in smart company.

Now please don’t mistake my unwillingness to join the chorus of those warning about the dangers ahead as my belief that everything is rosy. I understand the arguments about the huge imbalances in the financial system. I don’t need a lecture about the unsustainability of the current environment. I get it, we are screwed. We have made too many promises, have not saved enough and have created a can’t win financial situation. Read More

06.05.17- The Next Thing to Upend Everything
Dawn Luger

When it comes to blockchain technology, the core technology underpinning bitcoin, the digital currency that operates on a decentralized swarm of computers, there are many other applications as well. A real revolution may be unfolding all thanks to the technology which underpins bitcoin.

Blockchain technology emerged with the advent of Bitcoin in 2009. It was created when a programmer, using the pseudonym Satoshi Nakamoto, came up with a novel solution using a network of computers to track transactions in a way that is secure, trustworthy, fast, and transparent. The technology is used in either public networks, open to the world or private ones that could connect any type of groups. But it may also be the catalyst of a peaceful revolution which will upend society’s most sacred institutions – including government. Read More

06.03.17- Another Weekend Rant:
Pigs at the Trough

Bionic Mosquito

I was thinking about writing a post containing the list of CEOs of major US corporations who have come out against Trump’s decision regarding the Paris Climate Accord.  I am overwhelmed.  I would make my life easier by writing a list of those who haven’t.

I cannot let it go unsaid regarding one of these: Elon Musk.  It is really hilarious to consider that he has no company without the government’s involvement in the climate. None of these CEOs is a climate expert; all of them publicly complain about regulation.  You would think that this combination of characteristics would lead to either at best cheering the elimination of the horrendous regulatory burdens imposed by yet another scheme or at worst shutting up on a topic that they really don’t know much about. Read More

06.02.17- Dear Fed, It’s Not
“Really Hard to Spot Bubbles”

Wolf Richter

Minneapolis Fed President Neel Kashkari was the latest Fed official to claim in an essay – thus following in the time-honored footsteps of former Fed Chair Ben Bernanke – that “spotting bubbles is hard,” that the Fed cannot see them, and that if it could see them, it shouldn’t do anything to stop them because it had only “limited policy tools,” and because “the costs of making policy mistakes can be very high.”

But it’s OK to use these “limited policy tools” to inflate the greatest bubbles the world has ever seen and then preside over the damage they cause to the real economy before they even implode. Read More

06.01.17- Forget about Fake News...
Let’s Talk about Fake Markets

Clint Siegner

The U.S. and other nations with “free market” economies got credit for defeating the communists in Russia. That is ironic, because it is now more clear than ever that western leadership actually shares the Soviet inclination for central planning, and they have been increasingly intervening in our markets since the collapse of the USSR.

Our officials make economic policy as if healthy markets must be planned and coerced, much like the politburo. Some of this policy is created and run in the open; the government bailouts, Quantitative Easing, and zero interest rate policy, for example. Read More

05.31.17- How Long Can the Fed Keep the Boom Going?
Thorsten Polleit

The US bond market trades at a quite high valuation. For instance, the 10-year US Treasury bond presents a price earnings (PE) ratio of 43. In other words: It takes 43 years for the investor to recoup the bond’s purchase price through coupon payments; the bond market’s PE ratio even went up to 68 in June 2012 and July 2016, respectively.

At the same time, the PE ratio of the stock market is at 23, significantly higher than its long-term average of close to 17 for the period from 1973 to 2017. That said, the 10-year Treasury bond has become more hazardous compared to stocks. This is exactly what the PE ratio tells us: The higher (lower) the PE ratio, the higher (lower) the investor’s risk. Read More

05.30.17- Are Markets Ready for an Aggressive Agenda from the Fed?
Birch Gold Group

Newly released minutes from this month’s Fed meeting outline an aggressive agenda from our nation’s central bank that could upset markets in the months to come. Officials insist the plan is cautious, and stocks rallied initially on the news. But how safe should Americans feel long-term?

2 Decisions to Watch

There are two major policies from the Fed — one confirmed, the other anticipated with a high level of certainty — to keep your eye on in the coming months: Read More

05.29.17- The Federal Reserve Is Destroying America
Chris Martenson

And wait until you hear what they're getting away with now

Perhaps I should start with a disclaimer of sorts. Yes, I realize that the people working at the Federal Reserve, as well as the other central banks around the world, are just people.  Like the rest of us, they have egos, fears, worries, hopes, and dreams. I'm sure pretty much all of them go home each night believing they are basically good and caring individuals, doing important work.

But they're destroying America.  They might have good intentions, but they are working with bad models. Ones that lead to truly horrible outcomes. Read More

05.27.17- The Fed Will Blink
Bill Bonner

There was a time when central banking was an honest profession.

Central bankers provided financing for the government. They backed the banking system, too, by holding savings as reserves, which they lent to solvent member banks in emergencies.

They were tight-lipped, tight-laced and tightwads. Their role was to say “no” more often than “yes.”

When the king wanted money to fight in a war… or build a bridge… the banker would give the terse reply: “Sire, we don’t have any.” Read More

05.26.17- Don’t End the Fed, Ignore the Fed: How to Distance Yourself From a Collapse
Joe Jarvis

I like mom and pop family owned restaurants, and local craft breweries, two businesses that are currently doing great in America.

Giant corporations, on the other hand, are legally bound to the government, which causes most of the corruption in the corporate and government world. They end up taking advantage of people and bludgeoning their competitors using the government.

The United States of America is a giant corporation that is entering its dinosaur phase. Do you remember what happened to the dinosaurs? Their extinction paved the way for mammals to be the top species on earth. And in the same way, the collapse of the American financial system will pave the way for smaller governments, and governance. Read More

08.25.17- Quantitative Tightening: The Fed’s New Very Bad Idea
Richard Duncan

The Fed intends to reverse Quantitative Easing beginning later this year. That is a very bad idea that could inflict severe damage on the economy and destroy your wealth. The new Macro Watch video lays out everything you need to know about Quantitative Tightening.

Quantitative Easing (QE) was perhaps the most important element in a policy that prevented the world from collapsing into a new Great Depression when the global credit bubble began to implode in 2008. It allowed the government to finance its multi-trillion dollar budget deficits at very low interest rates. By driving interest rates lower, QE pushed asset prices higher, thereby creating a positive wealth effect that drove economic growth. It was also enormously profitable. The Fed earned $676 billion between 2009 and 2016. It gave those profits to the government, thereby reducing the budget deficit by that amount. Read More

05.24.17- The Keynesian Cult Has Failed: "Emergency" Stimulus Is Now Permanent
Charles Hugh Smith

Can we finally admit that eight years of following the Keynesian coloring-book have not just failed, but failed spectacularly?

What do we call a status quo in which "emergency measures" have become permanent props? A failure. The "emergency" responses to the Global Financial Meltdown of 2008-09 are, eight years on, permanent fixtures. Everyone knows what would happen if the deficit spending, money-printing, zero interest rates, shadow banking, asset purchases by central banks and all the rest of the Keynesian Cult's program stopped: the status quo falls apart. Read More

05.23.17- Money Supply and Credit Growth Continue to Falter
Pater Tenebrarum

The decline in the growth rate of the broad US money supply measure TMS-2 that started last November continues, but the momentum of the decline has slowed last month (TMS = “true money supply”).  The data were recently updated to the end of April, as of which the year-on-year growth rate of TMS-2 is clocking in at 6.05%, a slight decrease from the 6.12% growth rate recorded at the end of March. It remains the slowest y/y growth since October of 2008, when the Fed had just begun to pump quite heavily.

US money supply and credit growth keep slowing. Read More

05.22.17- We Are Witnessing A Breakdown In Market Breadth. It Is Worse Than Both Prior To The 1987 And 2000 Market Draw Downs.
Gordon T Long

We are witnessing a startling breakdown in market breadth. It is worse than both prior to the 1987 and  2000 market draw downs. Similar to the Dotcom Bubble when it finally burst in 2000, it is being held up by a hand full of stocks which were referred to in 2000 as the “Generals”.

Today we are experiencing the same complacent phenomenon as in prior major market draw-downs with the only differentiation being a different set of distracting “Generals” but with just as alluring investor attraction. Read More

05.20.17- Fake News, Fake Money
Andreas Antonopoulos

Fake news has been in the news a lot lately. And you have all of these accusations swirling around.

The established media… the The New York Times, the Washington Post… they’re pointing fingers and going, “These purveyors of fake news.”

Primarily at internet based sites. And Internet based sites are pointing right back, and going, do you remember Judith Miller?

“Yeah, there are WMDs with aluminum tubes in Iraq.”

Bullsh**. Read More

05.19.17- Chris Rossini: Federal Reserve Causing Almost Every Major Problem in the US
Wall St For Main St

View Video

05.18.17- “Look Ma, No Hands!”
David Stockman

The Deep State is escalating its war on President Trump but the Wall Street partiers apparently couldn’t care less. When the machines tagged 2402 on the S&P 500 yesterday, it was surely a historic case of “look ma, no hands!”

It’s hard to imagine what more will be needed to ignite an eruption of fear and panic in the casino amidst Wall Street’s record and wholly irrational state of somnolence.

After all, the Fed is sidelined and out of dry powder. The Red Ponzi is tottering. The U.S. retail sector is descending into an apocalypse. The giant auto bubble is fracturing. The Trump Stimulus is dead in the water, and Washington is heading for an extended stretch of complete dysfunction and acrimonious combat. Read More

05.17.17- The Coming Central Bank Crisis
Martin Armstrong

I have warned that whenever a government creates a solution to any crisis, that solution becomes the next crisis. This is what I have called the Paradox of Solution.The unfolding of the exit of the central banks from the Quantitative Easing monetary policy will become a much more serious threat to the financial markets than anyone suspects. The Federal Reserve has already exited and begun to raise rates while also announcing it will NOT be reinvesting the money when the government debt they bought expires. The Federal Reserve is already shortening their balance sheet. Bills of $426 billion will be due at the Fed in 2018, and again about $357 billion a year later. So the Fed will not repurchase that debt. The US economy is absorbing this because US dollars are effectively the only real reserve currency in the world right now. Read More

05.16.17- The Federal Reserve Must Go
Michael Snyder

If you want to permanently fix America’s economy, there really is no other choice.  Even before Ron Paul’s rallying cry of “End The Fed” shook America during the peak of the Tea Party movement, I was a huge advocate of shutting down the Federal Reserve.  Because no matter how hard we try to patch it up otherwise, the truth is that our debt-based financial system has been fundamentally flawed from the very beginning, and the Federal Reserve is the very heart of that system.  The following is a free preview of an upcoming book that I am working on about how to turn this country is a more positive direction… Read More

05.15.17- German Central Bank Warns Not To Use Bitcoin As It Is Not Backed By A Central Bank
Jeff Berwick

Central banking, which is a tenet of communism and a scheme to impoverish the many to benefit a few, is one of the evilest, most pernicious and rapacious entities on Earth.

So, when a member of the German central bank, Bundesbank, warned against buying bitcoin I almost choked on my wiener schnitzel.

Having a central bank warn against buying bitcoin is like a rapist warning you that sex with your spouse isn’t as exciting as when he rapes you. Read More

05.13.17- “We Are Seeing No Selling Of Physical Gold or Silver”
Egon von Greyerz

Time and time again we are seeing fraud taking place in the precious metals’ market. Thousands of tonnes of paper silver and paper gold are being dumped over just a few hours or days. For anyone who doesn’t understand what is happening, let me categorically state that this has nothing to do with the real physical market in gold and silver. No, this is blatant manipulation by governments and bullion banks as well as speculators. And since governments are involved, it is sanctioned by them with no consequences for the traders who are rigging the market. Read More

05.12.17- The Fed’s Massive Debt Bubble
in Picture Form

Graham Summers

As we’ve been outlining over the last few weeks, the auto-loan industry is increasingly looking like Subprime 2.0: the needle that will pop the credit bubble.

Since 2009, roughly 1/3 of all new auto-loans have been subprime. That in of itself is bad, but we are now discovering that the industry in general has a problem with fraud (shades of the Housing Bubble) as well.

As many as 1 percent of U.S. car loan applications include some type of material misrepresentation, executives at data analytics firm Point Predictive estimated based on reports from banks, finance companies and others. Lenders’ losses from deception may double this year to $6 billion from 2015, the firm forecast. Read More

05.11.17- Panic! Like It’s 1837
Daily Bell Staff

180 years ago today, everyone panicked. On May 10, 1837, New York banks finally realized that the easy money they were lending was unsustainable, and demanded payment in “specie,” or hard money like gold and silver coin. They had previously been accepting paper currency that for every $5 was backed by only $1 in silver or gold.

Things culminated to that point after years of borrowing the paper currency to expand west, buy land, and build infrastructure. As silver came in from Mexico, banks lent out five times the amount of their deposits–fractional reserve banking. Read More

05.10.17- The insidious effects of
monetary inflation

Steve Saville

(Editor's Note: The abomination called inflation is the result of a criminal act, perpetrated against the middle class, by a relatively small group of megalomaniacal putzes, as a means to intentionally steal the wealth from the people and deposit it in the vaults of the central bankers at the behest of their puppet masters. Inflation is not a natural occurrence, serves no positive purpose, and will destroy the economy of the United States within the next two to five years. To hear "what I really think" please follow this link - JSB)

Most people with a basic grounding in economics know that increasing the supply of money leads to a fall in the purchasing power of money. However, this is usually as far as their understanding goes and explains why monetary inflation is generally not unpopular unless the cost of living is rising rapidly. Read More

05.09.17- Central Bank Market Riggigng: Horrified About The Biggest Global Bank Run In History
Steve St Angelo

The Fed and Central banks are manipulating the gold and silver price because they are horrified that the biggest global BANK RUN in history will take down the entire system.  Unfortunately, a lot of investors are still being misled about the fundamentals of precious metals market manipulation.  While the Fed and Central bank are indeed intervening in the gold and silver market, they are also propping up the majority of asset values across the board.  This is especially true for most stocks, bonds and real estate.

Yes, it is also true that billions of Dollars worth of paper gold and silver are dumped into the market in nanoseconds during very light trading days.  Thus, the impact is to cap the gold and silver price, making sure that 99% of investors stay fast asleep. Read More

05.08.17- Sympathy For The Devil?
Adam Taggart

Trouble in paradise for the bankers

In our recent report, Banks Are Evil, we pulled no punches in makingthe accusation that the financial system is the root cause of injustice in today's society.

It's a good blood-boiler. You should read it if you haven't already.

Its main premise is this:

In my opinion, it's long past time we be brutally honest about the banks. Their influence and reach has metastasized to the point where we now live under a captive system. From our retirement accounts, to our homes, to the laws we live under -- the banks control it all. And they run the system for their benefit, not ours. Read More

05.06.17- On the So-Called Nuclear Option
Antal E. Fekete

I would like to add my penny’s worth of wisdom to the thoughtful article of Sr. Hugo Salinas Price entitled Where Are We Today? posted on the Silver Bear Cafe on March 10, 2017.

The phrase ‘nuclear option’ has come to be used by webauthors to mean a hypothetical conspiracy between Russia and China to synchronize the dumping of their huge holdings of U.S. Treasury paper on the markets to the detriment and discomfiture of the United States., thus dislodging the dollar from its position as the world’s only reserve currency.

Of course we must understand that the nuclear option is a double- edged sword: it can hurt also those wielding it. Russia and China could be hurt badly by the precipitously falling price of the U.S. Treasury paper. Read More

05.06.17- On the So-Called Nuclear Option
Antal E. Fekete

I would like to add my penny’s worth of wisdom to the thoughtful article of Sr. Hugo Salinas Price entitled Where Are We Today? posted on the Silver Bear Cafe on March 10, 2017.

The phrase ‘nuclear option’ has come to be used by webauthors to mean a hypothetical conspiracy between Russia and China to synchronize the dumping of their huge holdings of U.S. Treasury paper on the markets to the detriment and discomfiture of the United States., thus dislodging the dollar from its position as the world’s only reserve currency.

Of course we must understand that the nuclear option is a double- edged sword: it can hurt also those wielding it. Russia and China could be hurt badly by the precipitously falling price of the U.S. Treasury paper. Read More

05.05.17- CryptoGold and Thieving Banksters
Rory Hall

In order for the central bank ponzi scheme of fiat currency to work, especially on a global basis, the central banks learned early on that gold was the enemy of their scheme and, therefore, must be eliminated from the monetary system:

The first real step was Executive Order 6102 in 1933. This was just 20 years after the hijacking of the United States.

This was one of the major first steps to eliminating competing currencies with the Federal Reserve Note / U.S. dollar owned by and sold to the U.S. Treasury through the Federal Reserve Bank. Read More

05.04.17- G. Edward Griffin: Exposing The Creature From Jekyll Island
Adam Taggart

G. Edward Griffin, the author of the seminal book on the formation of the Federal Reserve, The Creature of Jekyll Island, joins the podcast this week to add his perspective to our ongoing critical examination of the Fed and the impact its actions are having on society.

Meeting Ed and getting to spend time with him was a real honor for Chris and me. His breadth of knowledge of the central banking system as well as his engaging manner of storytelling are masterful. Plus, he's simply a wonderfully kind person. Read More

05.03.17- The Fed’s Dangerous New QE Addiction
Eric Rosengren

A Fed policy caled quantitative easing, once thought highly risky and unconventional, could soon be making a comeback — possibly as soon as 18 months from now. Here’s what to expect if and when it happens.

Is the Fed Hooked on the Drug It Created?

In the midst of our last major financial crisis in 2008-09, the Federal Reserve essentially created money to buy up massive amounts of various assets, with the ultimate goal of increasing the money supply and boosting the economy. Read More

05.02.17- Economic Reality: Bottom 50% of Americans No Longer Matter
Mike “Mish” Shedlock

The Fed likes to brag about the “We saved the world” recovery.

However, the unfortunate truth of the matter is a record Half of American Families Live Paycheck to Paycheck.

Does it Matter? Let’s investigate.

Unprepared for Nearly Anything

  • 50% are woefully unprepared for a financial emergency.

  • Nearly 1 in 5 (19%) Americans have nothing set aside to cover an unexpected emergency. Read More

05.01.17- The ‘Taxation Is Theft’ Meme Has Officially Gone Mainstream
Alice Salles

ANTIMEDIA Op-Ed) The month of April is a nightmare for anyone with a conscience, as we only have until “tax day” - which usually falls on April 15 - to give the taxman what he says he deserves. So if you pay taxes to Uncle Sam and you’re also aware you’re paying for mass murder in the Middle East and in U.S. streets due to the drug war, you should also feel sick to your stomach as you write that check.

To a restaurant customer, this may have served as enough incentive to remind his server that taxation is always immoral — but he didn’t stop there. Read More

04.29.17- Are Fed Officials Throwing Main Street Under the Bus?
Birch Gold

Earlier this month, Richmond Fed President Jeffrey Lacker was forced to resign after admitting that he leaked confidential information to the financial press. And Fed Vice Chairman Stanley Fischer just gave a closed-door meeting to high level industry insiders.

Are Fed officials brokering info under the table? If so, what does that mean for Americans?

Richmond Fed President Jeffrey Lacker is now at the center of a major legal probe after he disclosed confidential information about the regional bank’s asset acquisition plans to Medley Global Advisors in 2012 – supposedly, he wants us to believe, by “accident”. Read More

04.28.17- A Rising (Central Bank) Tide Turns Everyone into a Genius
Charles Hugh Smith

Until the system implodes--you're a genius.

So you've ridden the markets higher--stocks, housing, commercial real estate, bat guano, quatloos, you name it--everything you touch turns to gold. What can we say, bucko, other than you're a genius!

It's a market truism that rising tides lift all boats. But that's not the really important effect; what really matters is rising tides turn everyone into a genius--at least in their own minds. Read More

04.27.17- The Fed Will Blink
Bill Bonner

GUALFIN, ARGENTINA – The Dow rose 174 points on Thursday. And Treasury Secretary Steve Mnuchin said we’d have a new tax system by the end of the year.

Animal spirits were restless. But which animals? Dumb oxes? Or wily foxes? Probably both.

Since Thursday there have been two additional very spirited up days with large gaps – this is very rare in the DJIA, particularly from such a high level after a ~240% rally since the lows made 8 years ago… it continues to feel like a blow-off (and it happens against the backdrop of a sharp slowdown in money supply growth). Read More

04.26.17- The Great Gold Racket
Stewart Jones

Murray Rothbard said it best when he said that “the threat of gold redeemability imposes a constant check and limit on inflationary issues of government paper. If the government can remove the threat, it can expand and inflate without cease. And so it begins to emit propaganda, trying to persuade the public not to use gold coins in their daily lives.”

Why does government hate the gold standard … or any real standard for that matter? At the heart of government’s attack on gold, silver, bitcoin, and other commodity standards is an outright hatred for accountability and private property, and a real love for theft. Read More

04.25.17- G. Edward Griffin: Exposing
the Federal reserve

Chris Martenson

Please join Chris Martenson and G. Edward Griffin they discuss the Federal Reserve, it's power and secretive workings.

G. Edward Griffin, the author of the seminal book on the formation of the Federal Reserve, The Creature of Jekyll Island, joins the podcast this week to add his perspective to our ongoing critical examination of the Fed and the impact its actions are having on society. Meeting Ed and getting to spend time with him was a real honor for Chris and me. His breadth of knowledge of the central banking system as well as his engaging manner of storytelling are masterful. Read More

04.24.17- The Chicken Or The Egg?
Bill Holter

Zerohedge put out an interesting article yesterday: Why “Nothing Matters”: Central Banks Have Bought A Record $1 Trillion In Assets In 2017. Please note this is $3.6 trillion annualized rate so far this year.

Of particular note is the chart below:

What jumps out at you should be the quadrupling of the their balance sheets since 2007 from $3.5 trillion to over $14 trillion.

So what exactly does this mean? Basically, to keep the system from imploding upon itself the world’s central banks had to “create” over $10 trillion of liquidity by purchasing assets onto their balance sheets. This is puts forth a “chicken or the egg” question, or actually two as you will soon see. Read More

04.22.17- Trump's Economic Disaster Is Here - Hidden Secrets Of Money 7
Mike Maloney

View Video

04.21.17- A Constitutional Dollar
The Mises Daily

Are you aware that a Federal Reserve dollar bill is not a constitutional dollar? Perhaps you are, but if so, do you know what a constitutional dollar literally is? Is it gold? Is it silver? Is it both? What is actually meant by a metal standard? Can the United States or any country be on two standards at the same time? Can two metals circulate as coin if there is but one standard? Or does one metal have to drive the other out of circulation? How and why does Gresham's law work when a country uses metal coin for money? In what ways are certain statements of Gresham's law misleading? Read More

04.20.17- Hell To Pay
MN Gordon

Economic nonsense comes a dime a dozen.  For example, Federal Reserve Chair Janet Yellen “think(s) we have a healthy economy now.”  She even told the University of Michigan’s Ford School of Public Policy so earlier this week.  Does she know what she’s talking about

If you go by a partial subset of the ‘official’ government statistics, perhaps, it appears she does.  The unemployment rate is at 4.5 percent, which is considered full employment.  What’s more, inflation is ‘reasonably close’ to the Fed’s 2-percent inflation target.  But what does this mean, really? Read More

04.19.17- Jeff Berwick Exposes The Federal Reserve and Makes Fox News Host
Look Like A Fool

The Dollar Vigilante

View Video

04.18.17- When Counterfeit Currency Crashes By At Least 50 Percent In America
Rasica Volubrjotr

Have you ever thought about what comes after the bubble?  In 2008 we got a short preview of what life will be like, but most Americans seem to have come to the conclusion that the last financial crisis was just a minor bump in the road toward endless economic prosperity.

But of course the truth is that the ridiculously high debt-fueled standard of living that we are enjoying now is not sustainable, and after this bubble bursts it will be an extremely painful adjustment for our society. Read More

04.17.17- The Illusion Of Liquidity
Lance Roberts

I thought the following quote from Janet Yellen’s Q&A at the University Of Michigan this week was interesting regarding the lessons I thought were learned from the financial crisis.

“First, we supervise banking organizations and some other financial enterprises to make sure that they operate in a safe and sound fashion. Second, we monitor potential threats to financial stability. We certainly don’t want to have another financial crisis and we want to redress threats in the environment that could lead to one. We had a system in which banking organizations were not monitoring and controlling risk appropriately. They had too much capital and were overleveraged.”

Silly me. Read More

04.15.17- Yellen’s Setting Up the Markets For Their Third Fed-Fueled Crash
Graham Summers

Janet Yellen is playing with matches next to a $20 Trillion Debt Bomb.

During her speech at the Gerald R. Ford School of Public Policy in Michigan, Yellen stated that the biggest risk to monetary policy is for the Fed to “get behind the curve” regarding inflation.

To that end, the Yellen Fed has already raised interest rates twice in the last six months.  And it is pushing for yet another rate hike in June. Read More

04.14.17- Pulling Levers to Steer the Machine
Bill Bonner

Ticks on a Dog

A brief comment on Fed chief Janet Yellen’s revealing speech at the University of Michigan. Bloomberg:

“Before, we had to press down on the gas pedal trying to give the economy all of the oomph that we possibly could,” Yellen said Monday in Ann Arbor, Michigan. The Fed is now trying to “give it some gas, but not so much that we’re pushing down hard on the accelerator.” […]

“The appropriate stance of policy now is closer to, let me call it neutral,” Yellen said in response to questions during an event at the Gerald R. Ford School of Public Policy at the University of Michigan. Yellen said she expected the economy to continue to grow at a moderate pace and that gradual interest rate increases “can get us where we need to be.” Read More

04.13.17- Shovel Ready: How The Fed Makes Us Dig Our Own Graves
Daily Bell

I just read an article from what the mainstream considers a reputable source of news, the New York Times. The article talked all about monetary policy and didn’t say a thing about the real world.

Because the Federal Reserve is not operating in the real world. They are operating in a world of currency manipulation that they pass off as saving the economy. They act like they are guardians of the dollar when in fact they are just bandits for the government. Read More

04.12.17- The End of Ultra-Easy Money?
C.Jay Engel

After eight years of extremely loose monetary policy, the economy is great again and we are to enter into a post-stimulative era of monetary policy. So said Yellen at a recent discussion at the University of Michigan. In her words, the Fed had given the economy all the "oomph [they] possibly could" and it was time to "allow" the economy to coast along.

Paying no attention to their own econometric constructs such as the GDP, the Fed has declared that the economy is fantastic. After all, the unemployment rate has leapt downward over the last several years (just don't look at the denominator — the labor participation rate) and the Fed's inflation measures are right around their arbitrary 2% level. Allegedly, these two pieces means everything is great! Read More

04.11.17- Federal Reserve Bank-Most Dangerous Criminal Enterprise In the World
Sol Palha

Many individuals falsely assume that the Federal Reserve is a Federal Entity/government entity, but it’s not. It is, however, a private entity whose sole mission is to enslave mankind.  This was achieved by replacing real money with Fiat. Instantly, they had the power to buy anyone or anything. Imagine being able to create money out of thin air. If you can do this, then paying someone a million or billion dollars comes down to creating new money and this can be done with the click of a mouse.  Just click the button and you can  create a billion out of thin air.  This system has allowed a small group of corrupt individuals to rule the world and enslave the rest of humanity. Read More

04.10.17- Fed’s “Backdoor” Rate Hike
Just Became Official

Birch Gold

Markets are reacting sharply to an unexpected decision revealed in the Fed’s newly disclosed meeting minutes. The decision could drastically change the economy’s direction over the coming months, and cause rates to rise far faster than anticipated.

Last month, we discussed how the Fed could implement a “stealth” or “backdoor” rate hike by trimming its balance sheet. At the time, nobody thought the Fed would take such action in the near term, but the meeting minutes reveal it’s coming soon.

Here’s what this news means for Americans and their money. Read More

04.08.17- And Now, for Something Entirely Different: Just A Taste: Clash of Civilizations
Joseph P. Farrell and Catherine Austice Fitts

View Video

04.07.17- If The Fed Sells Treasury's...Who Will Be Buying? Answer: "Other" (Seriously)!
Chris Hamilton

From 1776 through 2007, the US issued just over $9 trillion in US Treasury debt to pay for stuff which "we" wanted but "we" were unwilling to tax ourselves to pay for.  The buyers during that period are depicted in the first column of the chart below.  During that time, the majority buyer of that debt was the Intra-Governmental Surplus funds (primarily Social Security) as depicted by the green area in the first column below.  These funds were mandated to buy "governmental accounting series" non-marketable debt. Read More

04.06.17- Short And Sweet: Fed's New Policies A Longer-Term Positive For Gold Price
Michael J. Kosares

The Fed's public relations department has to be working overtime altering, amending and otherwise explaining its new stance[s] on monetary policy. While disinflation and the possibility of deflation occupied market sensibilities, the Fed pointed to its target inflation rate of 2% as proof that stimulus was still on its agenda. Now that producer prices have exceeded that level (and rather significantly as reported in this newsletter last month), articles began to appear in the financial press about a new, much higher inflation target in the 4% range. Read More

04.05.17- Where the Dollar Is Really Headed
Michael Carr

Many analysts announced that the dollar entered a bear market last week. Bloomberg noted on March 28 that its “Bloomberg Dollar Spot Index — which tracks the dollar’s movements against 10 leading currencies — has slid below its 200-day moving average and given back most of its postelection gains. The index was up 5.7% from Election Day to December 31; it’s down 4.1% this year through Monday.”

A week later, it looks like the bears were premature. The brief decline we saw in the dollar now looks like an ordinary pullback in an ongoing bull market. Instead of worrying about the dollar, there are actually a number of technical and fundamental reasons to expect continued dollar strength. Read More

04.04.17- Systemic Depression Is A Clear Choice
Jeffrey P. Snider

Looking back on late 2015, it is perfectly clear that policymakers had no idea what was going on. It’s always easy, of course, to reflect on such things with the benefit of hindsight, but even contemporarily it was somewhat shocking how complacent they had become as a global group. In the US, the Federal Reserve “raised rates” for the first time in a decade on the same day they released industrial production figures suggesting the grave possibility of looming recession. In Japan, it was merely more of the usual Keystone Cops routine.

On October 11, 2015, BoJ Governor Haruhiko Kuroda told CNBC that he expected expanded QQE undertaken the previous year would despite all the global turmoil be more than sufficient to finally end Japan’s “deflationary mindset.” He actually said, “I think we can approach 2 percent inflation sometime next year”, meaning 2016. Read More

04.03.17- And Now, for Something Entirely Different: How to Grow
the Most Flavorful Tomatoes

Dr. Mercola

Tomatoes are the most popular garden vegetable (technically tomatoes are a fruit, but they’re used more like a vegetable) in the U.S., with 95 percent of home gardeners planting them in their backyards.

About 4 of 5 people say that out of all homegrown foods, tomatoes are their favorite.1 Indeed, the flavor and texture of a supermarket tomato can’t compare to that of a homegrown variety.

Not to mention, tomatoes are exceptionally healthy, especially when they’re grown organically at home, and incredibly easy to grow. Read More

04.01.17- Multiple Bubbles Are Going to Bring America to Its Knees:
“The Warning Signs Are There”

Daniel Lang

If you’ve been paying attention to the ongoing degradation of the American economy since the last financial crisis, you’re probably flabbergasted by the fact that our economy has managed to make it this far without imploding. I know I am. I find myself shocked with every year that passes without incident.

The warning signs are there for anyone willing to see, and they are flashing red. Even cursory research into the numbers underlying our system will tell you that we’re on an unsustainable financial path. It’s simple math. And yet the system has proven far more durable than most people thought. Read More

03.31.17- Jim Rogers warns clueless Federal Reserve will be the ‘ruin of us all’
Andrew Moran

The Fed doesn’t have any idea what it is doing, and this ineptness will be “the ruin of us all,” says Jim Rogers, co-founder of the Quantum Fund, and perhaps the most charming man in the financial world.

Speaking in an interview with Bloomberg on Tuesday, Rogers explained that the United States central bank has driven interest rates to historical lows, causing the rest of the world to follow down the same path. This monetary policy experiment has also enabled debt to skyrocket unlike we have ever seen before. Read More

03.30.17- The Fate Of The Federal Reserve Is Now
Up For Grabs

Gary D. Halbert

The mainstream media is intently focused on the fate of President Trump’s Supreme Court nominee Neil Gorsuch. Judge Gorsuch is imminently qualified to serve on the Supreme Court and, if confirmed, he would fill the seat of the late conservative Justice Antonin Scalia.

Yet the Democrats seem prepared to fight tooth and nail to block Judge Gorsuch’s confirmation at every turn, including a possible filibuster of his nomination. This seems odd given that Gorsuch would be replacing a conservative Justice, and the fact that he was unanimously approved by both Republicans and Democrats for his current position on the 10th Circuit of Appeals. So what don’t the Dems like now? Read More

03.29.17- Central Banks Losing Credibility Fast
Kenneth Schortgen

The last two weeks have been extremely fascinating to watch as two of the world’s most powerful central banks showed themselves to be naked before the world in regards to their ignorance and ineptitude in trying to deal with the West’s current and future monetary policies. 

The first public spectacle took place in Europe on March 9, when ECB Chairman Mario Draghi stood pat with interest rates in the wake of rising inflation and a slowing EU economy, while stating that the central bank would continue to buy bond issuances through the end of this year. Read More

03.28.17- Two Trends That Will Force The Fed To Start Buying Stocks
John Rubino

While the Japanese and Swiss central banks have turned themselves into hedge funds by loading up on equities, the US Fed has stuck to supporting the stock market indirectly, by buying bonds. It's worked, obviously, with all major US indexes at record highs. But it won't work going forward, thanks to two gathering trends.

First, the main way bond buying supports equities is by lowering interest rates which, among other things, allows corporations to borrow cheaply and use the proceeds to buy back their own stock. Companies avoid paying dividends on the repurchased stock and the government gets capital gains tax revenue from a bull market. From a short-sighted Keynesian perspective, it's a win-win. Read More

03.27.17- “The USDollar Has NEVER Been In Greater Danger!”
Jim Willie

The USDollar has never been in greater danger for losing its dominant position as global reserve currency and payment standard.Challenges to its supremacy are many and with each passing month, more threats are put in place. While the volumes of trade payment in Chinese RMB grow slowly, and the banking reserves in non-USD bonds grow slowly, the risk for the USDollar to be marginalized has increased significantly in the last two to three years.

Basically speaking, a fiat currency run by a corrupt, thieving, and dishonorable hegemonic regime for the sole purpose of exploiting the rest of the world cannot stand the test of time, and will be dismantled. Read More

03.25.17- Just a quick reminder: the Federal Reserve is almost insolvent.
Simon Black

September 10, 2008 was one of the last “normal” days in the world of banking and finance.

That afternoon, the US Federal Reserve published its routine, weekly balance sheet report, indicating that the central bank had total assets worth around $925 billion.

Just a few days later, Lehman Brothers filed for bankruptcy, kicking off the most severe economic crisis since the Great Depression. Read More

03.24.17- Russian Roulette, Central Banks,
and Gold

Gary Christenson

Grab your ultra-reliable 357 magnum revolver and load the cylinder with six, not one, rounds of ammunition. Point the gun at your head if you are a member of the struggling middle-class. Imagine pulling the trigger and hoping …

Do you feel lucky?

The Six Loads of Ammunition for your 357 revolver are:

#1: Central banks and commercial banks exert a huge influence over all aspects of our financial lives. Paper currencies issued by central banks, digital currency units, credit card debt, pension funds, retirement accounts, checking accounts, Quantitative Easing, bond monetization, congress, regulators, Presidents, and the list goes on. Read More

03.23.17- Yellen's Dangerous Glass-Steagall Repression
Craig Wilson

The threat from too big to fail banks has now elevated to the point that ignoring a modern Glass-Steagall Act is too dangerous to repress any longer.  As massive Wall Street banks continue to inflate in size, the bipartisan negligence guided by the U.S central bank, has allowed the global economy, markets and businesses to be put at risk.

Last week the Federal Reserve under leadership of Chair, Janet Yellen raised interest rates by a .25% percentage.

While speaking in a rare but insightful Q&A session on the state of the economy after the hike, Yellen was asked by a reporter about too big to fail policy and what it meant for the economy and the Federal Reserve going forward? Read More

03.22.17- The Fed’s Half-Hearted Attempt at Monetary Tightening
Thorsten Polleit

On 15 March, the Federal Reserve (Fed) raised the federal funds rate by 0.25 basis points, bringing the band of the official rate to 0.75 – 1.00 percent. The move was widely expected. However, the market seemed surprised when the Fed reaffirmed that it would stick to its plan to raise rates no more than three times this year because inflation has already taken off. In February, the consumer price index was up 2.7 percent compared to last year, while the “core inflation rate” stood at 2.2 percent — well above the 2 percent mark typically seen as the level of “targeted” inflation. As a result, the current short-term interest rate in the US, when adjusted for current inflation, stands at around minus 1.7 percent. Read More

03.21.17- Is the Federal Reserve System Part of the Government?
Stephen Zarlenga

Students of our monetary system quickly encounter this important question, normally phrased as whether the Federal Reserve System is part of the U.S. Government or is a private organization. The importance people are placing on the answer is indicated by the over 36,000 web sites the question raises on internet search engines.

We’ll examine evidence in the Federal Reserve legislation; in how the Fed operates; from Congressional testimony; from statements from the Federal Reserve’s publications; in statements by former Chairmen of the House Banking Committee; and in official rulings by US courts. Read More

03.20.17- What the Fed’s “Stealth” Rate Hike Means for You
Birch Gold Group

As expected, the Federal Reserve raised interest rates on Wednesday. More hikes are anticipated for this year, but now there is growing concern about the possibility of an additional “stealth” rate hike. What is a “stealth” rate hike and how would it be carried out? Here’s what you need to know.

What Does Yellen Have Up Her Sleeve?

Moving on an aggressive new strategy to raise rates multiple times in 2017, just this week the Fed raised the key interest rate for the third time since the Great Recession. Read More

03.18.17- Banks Are Evil, and it's time to get painfully honest about this
Adam Taggart

I don't talk to my classmates from business school anymore, many of whom went to work in the financial industry.


Because, through the lens we use here at PeakProsperity.com to look at the world, I've increasingly come to see the financial industry -- with the big banks at its core -- as the root cause of injustice in today's society. I can no longer separate any personal affections I might have for my fellow alumni from the evil that their companies perpetrate.

And I'm choosing that word deliberately: Evil. Read More

03.17.17- Here’s What the Fed Does Next
James Rickards

The Fed raised rates yesterday, as I predicted back in December. The market dismissed it at the time, and only just caught on within the past couple of weeks. So basically, the market caught up with my forecast.

I don’t say this to pat myself on the back.

The point is, I use a rigorous scientific method to analyze and predict markets. I don’t guess or take positions just to get attention. I constantly apply new data to test my original hypothesis. If the data confirms my hypothesis, I stick with it. If the data conflicts with it, I step back and re-evaluate. You have to stay nimble. Read More

03.16.17- Gold & Silver Soar After
the Fed’s Clown Show

Dave Kranzler

The Federal Reserve’s FOMC predictably nudged the Fed Funds rate up 25 basis points (one quarter of one percent) to set its “target” Fed Funds rate level at .75%-1%.   Nine of the faux-economists voted in favor of and one, Minneapolis Fed’s Neil Kashkari, voted against the meaningless rate hike. Or is it meaningless?  Ex-Goldman Sachs banker Neil Kashkari was one of the Treasury’s Assistant Secretaries when the Government made the decision to bail out Wall Street’s biggest banks with nearly $1 trillion in taxpayer money. Read More

03.15.17- Everyone is Talking About the Wrong Central Bank and the Wrong Rate Hike
Graham Summers

The Fed meets this week on Tuesday and Wednesday.

The market believes that there is an 86% chance the Fed will be hiking rates during this meeting. The Fed has been broadcasting this for a month straight. It is possibly THE most expected rate hike in years. The consensus is that we will see a 0.25% rate hike bringing the Federal Funds Target rate to 0.75%-1.00%.

BORING. Read More

03.14.17- FED Hike in March may not be Bad News for Gold
Helder Guimaraes

After a challenging Q4 in 2016 in a context of rising bond yields and a stronger US dollar, gold seems to be getting its shine back in Q1. The technical picture is beginning to look a little more constructive and the “reflation trade”, spurred on further by expectations of higher infrastructure spending and tax cuts in the US, has thus far also benefited gold.

From a technical perspective, there are indications that the low at $1045.40, incidentally printed just ahead of the first Fed hike in December 2015, was significant and now provides medium-term support as indicated by the price channel in the chart below. Read More

03.13.17- 50-Year Look at the Dollar’s Purchasing Power vs. Gold
Kettle Moraine Precious Metals

(Editor's Note: The abomination called inflation is the result of a criminal act, perpetrated against the middle class, by a relatively small group of megalomaniacal putzes, as a means to intentionally steal the wealth from the people and deposit it in the vaults of the central bankers at the behest of their puppet masters. Inflation is not a natural occurrence, serves no positive purpose, and will destroy the economy of the United States within the next two to five years. To hear "what I really think" please follow this link - JSB)

To understand the impact of inflation on the US dollar, it’s helpful to compare its purchasing power to gold over time. Fifty years ago, the dollar’s value was quite substantial, but over time artificially low interest rates and money printing by the Fed have helped erode the greenback’s potency. In contrast, gold’s unique ability to preserve wealth and purchasing power is easy to see when compared to the dollar over the same time period. Read More

03.11.17- Market Report: Waiting on the Fed
Alasdair Macleod

Gold and silver continued to decline over the week, along with base metals and oil. Gold fell $40 from last Friday’s close to $1195, and silver by 112 cents to $16.85 in early European trade this morning (Friday).

The bears are quick to point out that $1200 and $17 levels respectively are being breached, and the downtrends are being resumed. This view suits the large bullion banks, which have been running short positions, because it has panicked the managed money crowd into closing their longs on Comex. Read More

03.10.17- Why the 21st Century Sucks –
Turtles All the Way Down

Bill Bonner

A Truly Sucky Century

BALTIMORE – What an awful century! Worst we’ve ever seen. Household incomes are down. Employment is down, with 7 million people in the U.S. of working age without jobs. Productivity growth is down. GDP growth is down – to only about 0.5% per capita last year.

Even life expectancies are down. Drug overdoses are up. Suicides are up. One out of every eight children lives in a family getting food stamps. One of out every eight adults takes psychoactive drugs. Read More

03.09.17- Are Central Banks Losing Control?
Charles Hugh Smith

Eight years after the crisis of 2008-09, central banks are still injecting $200 billion a month into the global financial system to keep it from imploding.

If you want a central banker to choke on his croissant, read him this quote from socio-historian Immanuel Wallerstein: "Countries (have lost the ability) to control what happens to them in the ongoing life of the modern world-system."

Stated another way, Wallerstein is asking: what do central banks no longer control? Read More

03.08.17- A Massive Liquidity Illusion
Steven Vannelli, CFA

Since the election we’ve heard the rally in stocks characterized as a “Trump Trade” or a “reflation” trade. We think there is a really important element missing from this analysis that could change very quickly over the next several weeks.

On March 16, 2017 (the day after the Federal Reserve is expected to raise interest rates for the third time) the US Federal debt ceiling comes back into law at $20.1 trillion. At the end of January, total federal debt was $19.93 trillion, and in real-time using US Debt Clock it is $19.93 trillion. Read More

03.07.17- The Gong Show
Captain Hook

As Dr. Steve Pieczenik (former CIA) explains in this brilliant clip, the larger US bureaucracy, deep state, and shadow government, the centralized 'super-state' that conquered the not just America, but the world, are essentially dying. The consequences of all the corruption, fraud, and excesses are coming home to roost, where significant change is coming Trump or no Trump, as will become evident as the global decentralization process accelerates in years to come. Thing is though, these people in the bureaucracy like their overpaid jobs and privilege, where they will not go quietly. This is what you are seeing right now as Trump attempts to 'drain the swamp' – the treason, backstabbing, and betrayal – where the daily antics in Washington these days are beginning to resemble a bad episode of The Gong Show, not the management of a country. Read More

03.06.17- Central banks and gold
Alasdair Macleod

The very near future is likely to see a sea-change in central bankers’ attitude to the gold allocation in their reserves. The failure of G20 monetary policy since the financial crisis is causing a general rethink, which may eventually lead to a new policy direction.

For now, that is undecided, beyond a growing acceptance that today’s monetary policy does not work and the assumptions of recent decades, that gold as money should be phased out, might have been a mistake. Read More

03.04.17- Nomi Prins: Here's How to Prosper in the Age of Artisanal Money
Craig Wilson

Nomi Prins joined the Mises Institute together with Jeff Deist where she discussed Prospering in the Age of Artisanal Money and what she views as the threat of central bank power to the financial system.

“She began her discussion highlighting cash and the financial system by stating, “There is an outside group of central bankers… That have not just the ability but the wherewithal and lack of any understanding to decide how much the value of cash is. How much interest you can receive for keeping your cash at a bank – which is nothing. In fact, you actually pay money to banks for the luxury of keeping your money. Read More

03.03.17- Fake Risk, Fake Return
Axel Merk

With seemingly everyone from the blogosphere to the Tweeter-in-chief chiming in on fake news, have investors considered their risk/return profile may also be “fake”? When it comes to investing, who or what can we trust, is the market rigged, and why does it matter?

For eight years in a row now, an investment in the S&P 500 has yielded positive returns.1 In recent years, expressions like “investors buy the dips” and “low volatility” have become associated with this rally. Read More

03.02.17- You Can’t Make the Fed Better by Hiring Different People
Daily Bell Staff

Trump’s Fed Can Start a Central Bank Revolution … President Donald Trump will select three members of the Federal Reserve board during his term in office, including a replacement chair for Janet Yellen when her appointment expires early next year. He should seize the chance to refresh the Fed with faces from the business community, adding executives to the roster of PhD economists who currently run monetary policy in most of the world. -Bloomberg

The Federal Reserve and its defenders are changing the subject. At one point Trump had talked about auditing the Fed and others had talked about using the audit to damage the Fed so badly that it would have to shut down. Read More

03.01.17- The Stench Inside The Fed
Douglas French

The Trump rally has stocks at all-time highs. The VIX (which reflects the volatility of the S&P 500) is at 10-year lows. The headline unemployment rate is 4.8%. Everything must be A-OK in the U.S of A.

Head Keynesian Janet Yellen, the Fed’s Chair, may be sleeping soundly, as she and her Ph.D. monetary mandarins continue to gin up a robust wealth effect.  At 70 years old, described by Danielle DiMartino Booth as “Bernanke in lipstick and a skirt,” Yellen is far from retired, pulling down $201,700 per year to push the buttons and pull the chains of monetary policy.

The typical retiree, however, not so ably employed as Ms. Yellen and not wanting to play in Wall Street’s big casino to provide sustenance in their golden years, are suffering under the Federal Reserve’s financial repression. Read More

02.28.17- The FED is Clueless
David Morgan

View Video

02.27.17- Macroeconomics and Psychology
Marc Chandler

Price pressures are gradually increasing, though the Fed's preferred and targeted measure of inflation, the core PCE deflator is likely to have remained at 1.7% in January, the base effect warns of topside risk in the coming months. Meanwhile, the labor market continues to improve. The four-week moving average of weekly jobless claims fell to a new cyclical low the same week the BLS conducted the survey for non-farm payrolls, which will be released on March 10.

The Federal Reserve raised rates once in 2015 and once in 2016. This year will be different. The shift in opinion is not so much in the increase of the likelihood of a March increase or June increase, but in a move in May. As we have noted, the advantage May is that it would be part of the normalization process when every meeting must be live. Read More

02.25.17- Round and Round She Goes
Jesse’s Café Américain

The Fed’s minutes came out today, and they were yet mildly hawkish in that vague sort of way that has preceded twenty-nine of the last two actual rate increases.

There is a theory about that because of the failure of the EU and alternatively China, the inflows of monies into dollar assets are bound to continue to drive the major stock indices higher, and will prompt the Fed to raise rates higher than many think.

This is a variant of the ‘money on the sidelines’ theory that, for whatever reasons, will be compelled to toss their wealth into overpriced assets because they have ‘no other choice.’ Read More

02.24.17- In A Battle Between Trump And The Federal Reserve, Who Really Wins?
Brandon Smith

As a part of the increasingly obvious set-up of conservative movements by international banking interests and globalist think-tanks, I have noticed an expanding disinformation campaign which appears to be designed to wash the Federal Reserve of culpability for the crash of 2008 that has continued to fester to this day despite the many claims of economic “recovery.”  I believe this program is meant to set the stage for a coming conflict between the Trump Administration and the Fed, but what would be the ultimate consequences of such an event? Read More

02.23.17- The Fed’s “Third Mandate”
Andrew Hoffman

Lately, the Cartel has been throwing everything – including the kitchen sink – at Precious Metals; in silver’s case, vigorously defending its latest “line in the sand,” at the 200 DMA of $17.96/oz; and in gold’s, at its 200 day and 200 MONTH moving averages, both of which are roughly $1,266/oz.  And despite, as I mocked yesterday, the dollar index “rising” this week – due to heightened fear of a Eurozone breakup – they’ve been having an immense amount of trouble holding them down. Read More

02.22.17- QE4 Is Coming...
Chris Vermeulen

The Congressional Budget Office (CBO) keeps two sets of books.  There is the official book which is presented to the public and the other book, the one on debt which is never released. Included in the debt book, are Social Security, Medicare and Medicaid. Washington D.C. politicians prefer it this way as it conceals their real costs. The general public is only concerned about the “official debts”, however, they should be concerned about our total debt structure.  The official indebtedness is $211 trillion.  Today, the U.S. is financially broke. Read More

02.21.17- Greenspan on Gold: Three Stages
Gary North

"When our friends get elected, they aren't our friends any more." - M. Stanton Evans

My deceased friend Stan Evans became deservedly famous for this law of politics.

This law applies to high-level appointments.

Back in the days when I was starting out in my career, Alan Greenspan wrote an article for Ayn Rand's Objectivist newsletter. It was pro-gold standard. It has been reprinted all over the Web. Back then, only a handful of us knew about it. I reviewed it in 2007 here. Read More

02.20.17- The IRS Has Just Made Obamacare’s Individual Mandate Optional
Eric Pianin

When President Trump signed an executive order shortly after taking office designed to weaken the Affordable Care Act, some questioned whether the instructions to federal agencies to look for ways to ease the law’s burden on businesses and individuals would have any real bite.

But on Tuesday, there can be little doubt Trump is succeeding in hastening the demise of a program that currently insures more than 9 million Americans. That’s because the Internal Revenue Service responded by weakening the health care law’s requirement that individuals either acquire health insurance or pay the penalty. Read More

02.18.17- Whatever Happened to Inflation after All This Money Printing? It Has Arrived!
Wolf Richter

Consumer prices surged 0.6% in January from December, double the consensus forecast of a 0.3% rise. The sharpest monthly increase since February 2013, according to the Bureau of Labor Statistics.

Energy prices jumped 4% month over month, including gasoline which jumped 7.8%. Food prices edged up 0.1%. Within this group, “food at home” was unchanged, but prices for “food away from home” – restaurants, taco trucks, and the like – rose 0.4%. In just one month, the prices of apparel rose 1.4%, of new vehicles 0.9%, of auto insurance 0.8%, of airline fares 2.0%. Shelter rose “only” 0.2%, as the national numbers are now feeling the downward pressure on rents in some of the most expensive rental markets in the US. Read More

02.17.17- Flying On A Wing And A Tweet
David Stockman

I never believed that the Great Disrupter made any sense on the fiscal issues. In fact, in Trumped! I called out his blather about rebuilding defense, slashing taxes and mounting a giant infrastructure program as far more reckless than Ronald Reagan’s 1981 “riverboat gamble.”

I also said back when the book was published that whatever he had in mind would quickly end up smothered in the Swamp.

I do not claim clairvoyance, but I am pretty sure that a “gong show” is exactly what is unfolding. On CNBC recently I described it as a “trainwreck from the Oval Office,” meaning a furious burst of activity which is sowing animosity, confusion, doubt, discord and pushback throughout the Imperial City. Read More

02.16.17- Insider Exposes The Evils Of The Fed
Adam Taggart

Danielle DiMartino Booth, former analyst at the Federal Reserve Bank of Dallas, has just released the book Fed Up: An Insider’s Take On Why The Federal Reserve Is Bad For America.

In it, Danielle describes how the Federal Reserve is controlled by 1,000 PhD economists and run by an unelected West Coast radical with no direct business experience. The Fed continues to enable Congress to grow our nation’s ballooning debt and avoid making hard choices, despite the high psychological and monetary costs. And our addiction to the “heroin” of low interest rates is pushing our economy towards yet another collapse. Read More

02.15.17- Get Rid of the Fed
Daily Bell Staff

Booth says many books about the Fed’s actions following the financial crisis have been written to make Fed officials look as good as possible because they are often written by the principals themselves.

A former Fed adviser in Dallas has criticized central bank economists for not understanding economics. Danielle DiMartino Booth was a financial journalist who warned about a real estate crash due to overly low interest rates. Read More

02.14.17- What Will Trump Do About the Central-Bank Cartel?
Michael Snyder

The US is by far the biggest economy in the world. Its financial markets — be it equity, bonds or derivatives markets — are the largest and most liquid. The Greenback is the most important transaction currency. Many currencies in the world — be it the euro, the Chinese renminbi, the British pound or the Swiss franc — have actually been built upon the US dollar.

The world is effectively on a US-dollar-standard, and the US Federal Reserve (Fed) has risen to the unofficial status of the world’s central bank. The rise of the Greenback has to a large extent been propelled by international banking, which has basically “dollarized” in terms of its lending and issuing activities. Read More

02.13.17- Gas Doesn’t Cost More . . .
Our Dollars Are Worth Less

Eric Peters

Did you know that gas is cheaper now than it was 50 years ago?

It may not feel like it . . . but:

Find an inflation calculator; for example the federal government’s Bureau of Labor statistics Consumer Price Index calculator (here). Select 1965 as your starting year. Enter 30 cents – the cost of a gallon of gas back then (here). Then select 2016 (2017 data isn’t yet available) and – look at that – $2.29.

About what a gallon of unleaded sells for today. Read More

02.11.17- The Crash Will Be Violent
David Stockman

It is almost impossible to overstate the level of unhinged mania in the stock market, but still the robo-machines and knucklehead day traders just can’t seem to let go.

They are essentially 12-year-olds on a bicycle defiantly screaming, look ma — no hands and a blindfold, too!

Worse still, these daredevils have been indulged by the Fed and other central banks so long that they surely have come to believe flying blind is completely safe. After all, we can count at least 60 “dips” since March 2009 that resolved to the upside over and again. Read More

02.10.17- Fed Comes Under Fire As Silver Soars
McAlvany Financial

View Video

02.09.17- The Costs of Dragon Maintenance
Gary Christenson

The next time you:

  • Pay your mortgage, which is mostly interest;

  • Pay your outrageously large auto or student loan;

  • Pay an exorbitant amount for health insurance;

  • Pay an even larger co-pay for a minor hospital procedure;

  • Buy groceries for $100 and compare that purchase to what $100 bought in 1971;

  • Realize that a four person family’s share of the U. S. national debt is nearly one-quarter million dollars … Read More

02.08.17- Republicans Reeling in Fed?
Daily Bell Staff

There seems to be some question as to whether Trump will move ahead with auditing the Fed. This would be too bad, as those who control a government’s money supply basically control the country.

But it certainly seems clear as this article points out, that Trump wants more control over the Fed. The Fed is committing to international agreements that are not signed off on by any formal authority in the US other than the Fed itself.

And the Fed is not a formal part of the US government. It takes order from the US government in some ways but that is not the same thing. Read More

02.07.17- End of Fed Independence! House Financial Services Committee Sends Warning Letter to Yellen “This is Unacceptable”
Mike "Mish" Shedlock

The Trump team wasted no time in telling Fed Chair Janet Yellen what is and is not acceptable.

Patrick McHenry, the vice chairman of the House financial services committee, sent Yellen a letter of admonishment regarding international negotiations the Fed conducts in secret, with no oversight.

One line stands out: “This is unacceptable”. The preceding paragraph tears into the Fed’s secret negotiations with foreign bureaucrats, “without transparency, accountability, or the authority to do so.” Read More

02.06.17- Trump: Federal Reserve Must Stop Ripping Off Americans
usapoliticsnow admin

President Trump has put the Federal Reserve on notice for violating the new administration’s America First policy, claiming the central bank has been operating illegally and ripping off Americans.

A warning letter, written by top Republicans and obtained by the Financial Times, accuses the Federal Reserve of burdening American businesses and workers with bad financial deals made with global central banks “without transparency, accountability, or the authority to do so” Read More

02.04.17- And Now, foe Something Entirely Different: FBI Insider: Pizzagate Pedophile Ring Arrests Are Now Imminent
Jay Greenberg

30 politicians & 40 others in DC, VA & NYC to be arrested

An FBI whistleblower has confirmed that 30 politicians and 40 other individuals are to be arrested in Washington D.C., Virginia, and New York City in connection with the Pizzagate pedophile ring. Clinton Campaign Chair, John Podesta, has been at the center of the Pizzagate scandal

The insider at the Federal Bureau of Investigation claims that the FBI has just finished(3 pm 2/2/17) submitting paperwork to the Department of Justice in preparations for the arrests which will begin as soon as Jeff Sessions assumes his role as Attorney General. Read More

02.03.17- Meanwhile, over in Zimbabwe. . .
Simon Black

On April 12, 2009, the government of Zimbabwe officially abandoned its currency.

You probably remember the stories; starting in the early 2000s, the Zimbabwe central bank began printing massive quantities of money in order for the government to make ends meet.

This resulted in one of the worst episodes of hyperinflation in modern history.

Zimbabwe’s rate of inflation in 2001 was more than 100%. Prices basically doubled. Read More

02.02.17- The Us Dollar Had It's Worst Start In Three Decades

The U.S. Dollar has been losing purchasing power ever since the Federal Reserve (aka Banksters) was invented. It is inflation theft though the Fed's fiat dollar that slowly erodes our wealth.

The dollar could recover only a little ground on Wednesday, after recording its worst start to the year in three decades on concerns the United States was poised to ditch a two-decade old “strong dollar” policy.

The greenback skidded 2.6% against a basket of major peers in January, its worst showing since 1987, falling first on worries over U.S. President Donald Trump’s protectionism and then on mounting concerns that the new administration was set on talking down the currency. Read More

02.01.17- I Have Never Done This Before!
Andrew Hoffman

Yes, I know…it’s a very provocative title – which I’ll get to momentarily.  However, in the context of its subject – the desperation of the collapsing “powers that be” to preserve a dying status quo; in which the “1%” maintain the world’s power and wealth, at the expense of an increasingly angry “99%”; their attempts to buy a few more nanoseconds via unprecedented levels of market manipulation have never been more obvious, for the entire world to see.

And nowhere more so, than in the fraudulent; fractional-reserved; massively naked shorted; and for all intents and purposes, unregulated paper markets for the historical mortal enemy of fiat currency. Read More

01.30.17- Thoughts about the Fed's Balance Sheet
Marc Chandler

The Federal Reserve meets this week, but there is, for all practical purposes, no chance that a rate hike is delivered. Whatever the Fed means by the gradual pace of normalization of policy, it precludes rate hikes at two successive meetings.

Most market participants do not expect a hike at the next meeting in mid-March either. Bloomberg's calculation suggests a 33% chance while the CME estimates the market has discounted a 20% chance. Our own interpolation is closer to the CME than Bloomberg. Read More

01.30.17- The Fraud Behind The Fed
Daniel R. Amerman, CFA

Frauds are the most painful on the back end, not the front end. 

In Part One of this analysis we compared two sets of books that the U.S. government keeps, and identified a $5.4 trillion financial "fraud" with regard to the Social Security and other government Trust Funds, including military and civilian federal employee retirement programs. 

While not legally a fraud, because this was the United States government doing it, nonetheless, the savings have all been spent over the previous decades and what is left is the hollow shell of one branch of the government having a financial claim on another branch of the government. Read More

01.28.17- The Trap Is Set: “Both Sides Are Utterly Unprepared For What’s Coming”
Mac Slavo

If there’s one thing that should be absolutely clear in the current political environment in America, it’s that  there exists a deep division between the people of this nation. Both of sides of the aisle argue vehemently about what’s best going forward, sometimes to the point of physical violence. And though the election of President Donald Trump speaks volumes about the sentiment of Americans, the following video report from Storm Clouds Gathering warns that both sides are utterly unprepared for what’s coming. Read More

01.27.17- Beware, Dissenter to
the Monetary Regime

C. Jay Engel

In a cry of desperation, Tim Duy takes to Bloomberg to warn the world about the possibility of “hard-money” advocates getting into the Fed. Why, there’s potential that new Fed governors might not be “divorced from political pressures.” Wouldn’t that be a radical shift.

The hilarity of this article is that the “hard money” label is being applied to defenders of a policy rule; specifically, John Taylor of “Taylor Rule” fame. Yes, the advocates of formula based interest rate shifts, who deride the true hard money of the classical gold standard, are now in the extremist hard money camp. Read More

01.26.17- Central Banks Banking On Blockchain
Jan Skoyles

“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust ”Satoshi Nakamoto (Unknown person or persons who designed bitcoin and created its original reference implementation, Bitcoin Core)

Fiat currency debasement and failure is why gold has survived and thrived for thousands of years  and indeed in recent years. It is why bitcoin is becoming more popular, with its growing market cap and ever-expanding ecosystem. Read More

01.25.17- The Yellen-Trump Showdown
James Rickards

The odds of the U.S. avoiding both a recession and inflation for the next four or five years are small. So it’s safe to say the Fed will intervene in markets again if either of those outcomes emerges.

This raises the question of potential cooperation or conflict between the Fed and the White House, or more specifically, between Janet Yellen and Donald Trump in the new year. Initial indications are that this relationship is more likely to be one of conflict than cooperation.

This is a danger sign for markets and investors. Read More

01.24.17- The Sinister Agenda Behind the Washington War On Cash
F. William Engdahl

It’s kinda sneaking up on us like an East Texas copperhead pit viper. It began to get some wide attention in 2016, with prominent economists and financial media suddenly talking about the wonderful benefits of a “cashless society.” Then the government of Narenda Modi completely surprised his citizens by suddenly announcing withdrawal of larger denomination currency notes from circulation, forcing Indians to put their cash into banks or lose it. Now, everywhere we turn, it seems, someone is arguing the Nirvana benefits of a cashless, “digital” money world. It reminds me in an eerie way of a statement attributed to then US Secretary of State, Henry Kissinger in the 1970’s. He reportedly stated, “If you control oil, you control entire nations; if you control food, you control the people; if you control money, you control the entire world.” Consider the following in this regard. Read More

01.23.17- Real Markets Are Not ‘Pop Economics’
Daily Bell Staff

The Ways That Pop Economics Hurt America  … Someone needed to write a book about how economic theory has been abused in American politics. And someone finally did. James Kwak’s “Economism” is a very important and timely book, and anyone who is interested in public affairs should pick up a copy and read it.  Kwak, a law professor at the University of Connecticut, spins a tale of how simple supply-and-demand theory fed a free-market ideology that led to a financial crash, a dysfunctional health-care system, spiraling inequality and a threadbare social-safety net. – Bloomberg

The idea that America has free markets is laughable. But this book apparently starts with the idea that people simply want to reinforce what America already has and add to it. In fact, as long as America has monopoly, “Federal Reserve” money, free markets won’t exist in the US. Read More

01.21.17- Weekend Rant:
Making America Great Again

Paul Nehlen and Stefan Molyneux

View Video

01.20.17- Fielding my grandson’s questions about gold and banking
George F. Smith

My grandson had quite a day at school.  He had learned that the economy had been suffering from things called Panics, capital P, during the 19th century and had another big one in the early 20th century.  He had been told that responsible, public-spirited men like J. P. Morgan had organized a central bank to prevent those Panics.  He and other bankers finally got the government to go along with their idea and pass it into law in late 1913.  And wouldn’t you know it — we’ve had no more Panics since then. Read More

01.19.17- In FX poker, central bankers are Jokers and “the Donald” is trump
Michael O’Neill

The 2017 World Series of Poker is still six months away but FX market poker is in full swing. At this table, the central bankers are the jokers and the new US president is trump.

On December 14, 2016, the Summary of Economic Projections was released alongside the policy statement. The dot-plot chart indicated three rate hikes in 2017, instead of two that were previously forecast.

That may not be enough, if the FOMC minutes can be used as a guide. The minutes, released on January 4, 2017, have Committee members expressing concern that the upside risks to the forecast had increased. Read More

01.18.17- 7 Federal Reserve Tools and Why They’re All Flawed
James Rickards

[Ed. Note: Jim Rickards latest New York Times best seller, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis (claim your free copy here) transcends politics and the media to prepare you for the next crisis] 

In recent decades, the Fed has engaged in a series of policy interventions and market manipulations that have paradoxically left it more powerful even as those interventions left a trail of crashes, collapses and calamities.

The following is a survey of seven Federal Reserve tools in the Fed toolkit to stimulate the economy if recession or deflation gains the upper hand and why their toolkit is flawed. Read More

01.17.17- Why Fractional-Reserve Banking Would Be Limited in an Unhampered Market
Frank Shostak

The so-called multiplier arises as a result of the fact that banks are legally permitted to use money that is placed in demand deposits. Banks treat this type of money as if it was loaned to them, thus loaning it out while simultaneously allowing depositors to spend that money.

For example, if John places $100 in demand deposit at Bank One he doesn't relinquish his claim over the deposited $100. He has unlimited claim against his $100. Read More

01.16.17- The Federal Reserve and the Destruction of the American Dream
Danielle DiMartino Booth

“Government is a just execution of the laws, which were instituted by the people for their people’s preservation: but if the people’s implements, to whom they have trusted the execution of those laws, or any power for their preservation, should convert such execution to their destruction, have they not the right to resume the power they once delegated, and to punish their servants who have abused it?” -John Wilkes, The North Briton, October 19, 1762

No truer words have ever been penned to the betterment of a people struggling to break free of tyranny. Indeed, John Wilkes is considered by some historians to be the primary source of inspiration for revolutionary colonial Americans given his staunch defense of religious liberty, prisoners’ rights and freedom of the press, rights we hold dear to this day.Read More

01.14.17- Surmount Impending Markets Shocker to Profit & Protect
Deepcaster, LLC

Deepcaster has, from its founding ten years ago, aimed to provide Investors Truth about the Economy and Markets so far as we could determine it. Not an easy job given the deluge of Bogus Official Numbers and Mainstream Media Spin or outright distortion or Censorship.

Fortunately, there are Alternative Sources of Accurate Information.

Well, an examination of the Real Economic Numbers and Key Market Realities today leads to a Startling Conclusion. Soon in 2017 we expect Investors to experience a Great Shocker—a Great Profit Opportunity for the Cognoscenti, and a Threat to the Wealth of the Unknowing. Read More

01.13.17- The Fed Needs Competition, Not Rules
Tho Bishop

In December the Federal Reserve raised interest rates for the first time in 2016, once again failing to meet its own expectations it set the year prior. Unfortunately forecasting failures at the Fed is nothing new, for years it has routinely missed on both rate hikes and GDP projections. While it’s unfair to expect Fed economists to be fortune tellers, crying wolf does have consequences. The markets have learned to take the Fed’s projections with a grain of salt, with Chairwoman Janet Yellen herself having to admit that “forward guidance”, a tool championed by her predecessor Ben Bernanke, has lost its potency.

This reality, combined with the Fed’s unprecedented actions following the financial crisis, has led to ever increasing calls for reforming the institution. Most of the attention has focused on limiting the discretion of the Fed by imposing a rules-based monetary policy. Read More

01.12.17- Three factors will shake up the Federal Reserve in 2017
Michael Gapen

Change is coming. Fiscal policy, trade policy, and regulatory policies are all on the table and up for review in the Trump administration. In addition, we foresee significant changes on the horizon for the Federal Reserve and how it conducts monetary policy.

We see these changes at the Federal Reserve as coming on three fronts. The first is the normal rotation of voters within the Federal Open Market Committee, or FOMC.

While all committee members attend and exchange views at the Fed’s policy meeting, a lesser known fact of the way the FOMC operates is that only a subset of the larger group has the authority to vote on monetary policy. Read More

01.11.17- Black Magic Fraud to be exposed in 2017
– Gold up 300x

Tyler Durden

At the beginning of a new year it would be totally natural to forecast what the likely events and trends will be for 2017. A lot of experts around the world will predict a number of “new” events as if a lot of things will change just because we are entering a new year.

But sadly, I will disappoint everyone and not change direction in any single area that I have been talking about for many years. Trends don’t change because we are in a new year. The principal long term trends take a long time to develop and longer to reach a turning point. Read More

01.10.17- Here’s a unique sign of inflation
Simon Black

I remember the first time I ever saw a $100 bill.

It was back in the early 80s, I must have only been 5 or 6 years old.

My parents took my sister and I to a fancy restaurant, and I distinctly remember a man dressed in a dark business suit a few tables over paying his bill with a crisp $100 note.

He pulled it out of his wallet, slid it onto the table, and walked away.

I was dumbfounded. It was more money than I had ever seen in my young life. Read More

01.09.17- 'Audit the Fed' bill gets
new push under Trump

Tim Brown

The majority of power and influence that exists in our world today lies within the grasp of five wealthy families and their descendants, many of whom were complicit in the creation of the Federal Reserve. That has led to a devaluing of real money, replacing it with fiat currency and untold wars and corruption. Now, Kentucky Senator Rand Paul, along with Representative Thomas Massie, are following in the footsteps of Ron Paul and have introduced legislation that would audit the Fed.

The Hill reports:

Rep. Thomas Massie (R-Ky.) and Sen. Rand Paul (R-Ky.) have re-introduced legislation to "Audit the Fed," after a similar effort stalled in the last Congress. Read More

01.07.17- Grudge Match 2017: Trump vs. Yellen
Dave Gonigam

Looks as if it’s game on — Trump versus the Deep State.

“Deep State” is a term that originated in Turkey to describe certain actors within the structure of government who were unseen but who wielded the real power irrespective of who won elections. A few years ago, a retired congressional aide named Mike Lofgren appropriated the term to describe a similar phenomenon here in the United States. Others, including Agora founder Bill Bonner, find it a useful prism through which to view the passing scene.

As you’re likely aware, President-elect Trump has expressed skepticism about the “Intelligence Community” and its claims that Russia “interfered” in the 2016 campaign for purposes of electing Trump. Read More

01.06.17- The Fed’s Playbook for 2017
James Rickards

[Ed. Note: Jim Rickards latest New York Times best seller, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis (claim your free copy here) goes beyond the election and prepares you for the next crisis]

Fed forecasting is surprisingly easy despite the sturm und drang of the talking heads. It’s a matter of considering what we know, and what we don’t know, and observing the indications and warnings that presage the unknown.

What we know is that the Fed is biased toward rate increases as long as the economy is growing. This is because the Fed needs to raise rates to 3.25% before the next recession in order to cut them back to 0% when the recession hits; approximately the amount of cutting needed to pull the economy out of recession. Read More

01.05.17- 42 Years of Fractional Reserve Alchemy
Craig Hemke

It has now been 42 years since The Global Bankers successfully alchemized gold through the advent of futures trading so we begin the new year by looking back at how we got into this position in the first place.

To that end, let's start 2017 by going back to 1974.

Over the past few years, you've often heard me reference the HISTORY and FACT of gold price suppression and manipulation. Whenever it comes up in an interview or presentation, it often goes like this: Read More

01.04.17- Nomi Prins: Central Banks and the Artisanal Money Era
Craig Wilson

Financial journalist and bestselling author, Nomi Prins disparages on what the future of the global financial system will look like in what she has defined as the Artisanal Money Era.  In attendance at the Library at the Royal College of Surgeons in London, together with affiliates at Agora Financial’s UK office, she unleashed in depth analysis on central bank policy and what it means for the U.S, Europe and the global financial environment.

While in discussion at the beginning of December she started out by noting, “As long as these the central bank leaders are still in their positions the same or similar policies will continue. They really don’t know what else to do. To abandon them now, particularly when they have not been working, would be an admission. Read More

01.03.17- The Fed’s Troubled Road Ahead
James Rickards

In recent decades, the Fed has engaged in a series of policy interventions and market manipulations that have paradoxically left it more powerful even as those interventions left a trail of crashes, collapses and calamities.

Needless to say, for the past 20 years the Fed has gone beyond its dual mandate of price stability and full employment to engage in full-scale manipulation of markets and the macroeconomy.

On Dec. 5, 1996, Alan Greenspan, then Chairman of the Federal Reserve, gave a speech in which he mused about whether valuations in the stock market reflected a degree of “irrational exuberance.” The irony was that stocks measured by the Dow Jones index doubled in value over the next three years before crashing over 40% from their peak on Dec. 31, 1999. Read More

01.02.17- Forecast 2017:
The Wheels Finally Come Off

James Howard Kunstler

Apart from all the ill-feeling about the election, one constant ‘out there’ since November 8 is the Ayn Randian rapture that infects the money scene. Wall Street and big business believe that the country has passed through a magic portal into a new age of heroic businessmen-warriors (Trump, Rex T, Mnuchin, Wilbur Ross, et. al.) who will go forth creating untold wealth from super-savvy deal-making that un-does all the self-defeating malarkey of the detested Deep State technocratic regulation regime of recent years. The main signs in the sky, they say, are the virile near-penetration of the Dow Jones 20,000-point maidenhead and the rocket ride of Ole King Dollar to supremacy of the global currency-space. Read More

12.31.16- Drifting into fascism
Alasdair Macleod

Most people regard governments and their central banks as forces for the good. Financial crises and suchlike are therefore blamed on capitalism, and people believe our leaders do their best to pick up the pieces from market failures, because they are elected to promote the public good.

The reality is very different, with governments acting not in the interests of their electors, but in the interest of the preservation of the administration. And the size of the administration is proportional to its degree of control over the people, so it and its burden on ordinary people just grows and grows with ever-increasing intervention and micro-management. Read More

12.30.16- The Reason the Fed is Raising Rates, and Why It Won’t Work
Mike Whitney

Why is the Fed creating incentives for US corporations to destroy themselves? Why is the Fed pushing insurance companies and retirement funds into bankruptcy?  Why is the Fed raising interest rates when inflation is still well below its 2 percent target?

Things are not always what they seem. In theory, the Fed’s low interest rates are supposed to have a positive impact on the economy by spurring a credit expansion. But it hasn’t worked out that way. Bank lending has remained stubbornly subdued throughout the post-crisis period. But what hasn’t remained subdued is corporate borrowing (via the bond market) which has exceeded all previous records increasing the probability of massive corporate defaults sometime in the next two years. Read More

12.29.16- The BIGGEST BATTLE in Washington; Trump vs. Yellen
Oliver Donaldson

In my last article I wrote at length about the near-term challenges that are threatening the recent bullish run of the so called “Trump Rally”. These economic factors will probably lead to a correction any time now and it would only be natural that the market would return higher again, as it usually does in a boom and bust cycle. Though this is the usual economic cycle for America, the Trump administration will be challenged even further by one of the most powerful forces in Washington; Janet Yellen and the Federal Reserve. Read More

12.28.16- Which Comes First -
Dow 20k Or $1000 Bitcoin?

Tyler Durden

For 10 straight days, progonosticators have promised that the Dow Jones Industrial Average will break gloriously above 20,000 for the first time in history, proving how great the economy must be (or will be) and leading investors to the next secular bull leg of this miracle of wall street.

So far it hasn't happened... (Dow +11.75% post-Trump)

But halfway around the world, Chinese fears (of capital controls and devaluation) have sparked an exodus into alternative currencies - most notably Bitcoin as it soars towards $1000. (BTC +42% post-Trump)Read More

12.27.16- The Real Reason for Government Banking Solutions
Daily Bell Staff

This is a bad season for banking around the world and especially in Italy where major banks are under water.

Central banks are supposed to protect banks but who really believes that? In the modern era especially central bank protection has often involved government refinancing.

From the point of view of central banking, the health of the whole system is more important than the health of an individual component. That’s one reason why Italy’s oldest bank was just bailed out.

The bank, Monte dei Paschi di Siena, is being bailed out by the italian parliament which has put aside up to 20 billion to ose as necessary. However the parliament dearly hopes it won’t cost so much. Read More

12.26.16- What Is Left To Go Before
The Great Reset?

Jim Sinclair

What is left to go before the Great Reset?

The Great Reset is the milestone economic event that is the final step in the restructuring of the monetary system that functions as real money is intended to.

This system in word and fact is the mechanism the sum of its parts truly functions as:

1.A Store House of value.
2.A Measure of value.
3.A Standard of value
4.A Medium of Exchange. Read More

12.24.16- Why Are Dollar Bills Worth Anything?
Frank Shostak

Why are the dollar bills in people's pockets worth anything? According to some experts, the dollar bills carry value because the government in power says so. Other experts are of the view it is because people are willing to accept it as payment.

To say that the value of money is on account of the government or on account of social convention is to say very little. In fact, what experts are saying is that money has value because it is accepted, and why is it accepted? … Because it is accepted! Read More

12.23.16- The Biggest Threat to the Trump Rally
Michael Covel

As the Dow Jones approaches 20,000 following Trump’s triumph, investors have reached a state of euphoria…

The Dow has scored 15 all-time closing highs since the election.

CNBC reports that ETFs have seen nearly $100 billion in inflows.

One of the Fox Business “analysts” even called for Dow 30,000 yesterday. Read More

12.22.16- Something Wicked This Way Comes
Jim Quinn

I stopped trying to predict markets back in 2008 when the Federal Reserve, Treasury Department, Wall Street bankers, and their propaganda peddling media mouthpieces colluded to rig the markets to benefit the elite establishment players while screwing average Americans. I haven’t owned any stocks to speak of since 2006. I missed the the final blow-off, the 50% crash, and the subsequent engineered new bubble. But that doesn’t stop me from assessing our true economic situation, market valuations, and historical comparisons in order to prove the irrationality and idiocy of the current narrative. Read More

12.21.16- Fed’s Faux Confidence Keeping Stock Bubble Afloat
Peter Schiff

In her rate hike announcement last week, Janet Yellen said the Fed was so confident in the health of the US economy that it was raising the Federal Funds rate by a paltry quarter point. Investors are on board, with a wave of irrational exuberance sending the Dow closer to its 20,000-point milestone. However, the Fed’s decision suggests the need for a strict comparison with its statements last December: a time when a similar expression of economic confidence would prove to substantially miss the mark for rate hike expectations and GDP growth. Read More

12.20.16- The War On Cash And Then
On Gold And Silver

Clive Maund

The global financial system continues to groan under the strain of the accumulated weight of trillions of dollars of debt and derivatives, which have built up to even more fantastic levels than those that precipitated the near collapse in 2008. And thanks to the policy of solving liquidity problems near-term by creating even more debt and derivatives, Quantitative Easing being the most obvious example. However, while the majority consider the situation to be hopeless, there is actually “light at the end of the tunnel.” Read More

12.19.16- Six Steps Trump Can Take Toward Better Monetary Policy
Jesse Felder

Since Nixon severed the final link to gold in 1971, the US dollar has lost more than 80% of its purchasing power, wreaking havoc on ordinary savers, conservative investors, and households on fixed incomes. Today, inflationary monetary policy continues to be a foundational tenet of all presidential administrations as politicians and central bankers have heedlessly been borrowing and printing currency without restraint in order to bankroll today’s bloated and insolvent federal government.

Movement in the direction of sound money is badly needed, and even without abolishing central banking, there are several steps that the Trump administration can take toward improving monetary policy. Read More

12.17.16- Why The Fed Is Tilting At Windmills
Jesse Felder

“My reason is now free and clear, rid of the dark shadows of ignorance that my unhappy constant study of those detestable books of chivalry cast over it. Now I see through their absurdities and deceptions, and it only grieves me that this destruction of my illusions has come so late that it leaves me no time to make some amends by reading other books that might be a light to my soul.” -Don Quixote

I grew up surfing in Southern California. Sure, I played baseball and basketball like most other boys along with a lot of soccer but these never really captured me like surfing did. I was eight years old when I first stood up on surfboard and rode a wave to the beach at Latigo Point and from that moment I was hooked. There was truly something magical about harnessing the power of Mother Nature for nothing other than the pure joy of essentially walking on water. Read More

12.16.16- Even After Rate Hike, People Still Don’t Believe the Fed
Tho Bishop

It finally happened. The Fed raised interest rates a quarter of a percentage point for the first time in 2016, after forecasting four rate hikes a year ago. The decision was highly anticipated following the market’s surge post-Trump election (Paul Krugman’s biggest miss since the success of the internet).

Of course this still leaves interest rates down three quarters of a percentage point from last year’s projection, which may be why many aren’t buying the Fed’s forecast of three rate hikes in 2017.

As Bloomberg reports, the bond market sees the Fed overplaying its hand again: Read More

12.15.16- The Fed and Dow 20,000 Plot
a Collision Course

Greg Guenthner

The Dow Jones Industrial Average tacked on another 114 points to close Tuesday trading at 19,911.

The big, round number is now staring us right in the face.

The feeding frenzy could happen as early as tomorrow as the Dow sneaks within reach of its highly anticipated 20K milestone. But now that the Big Board’s climbing higher up the bean stalk, these 1,000 points moves just don’t pack the same punch.

If you’re the thrifty type, feel free to just dust off one of your old caps instead of buying a new one. With some minor alterations, you can squeeze a lot more mileage out of ‘em: Read More

12.14.16- Money Under Fire
Chris Martenson

A reminder of the great wealth transfer underway

Today we welcome a cohort of new readers visiting PeakProsperity.com for the first time. This article is to give them our best grounding in the massive wealth transfer underway.

Our hope is that our longtime readers will likely benefit from a revisitation of the fundamentals, as well.

One serious predicament we face is that the current leaders in the halls of monetary and political power do not appear to understand the dimensions of our situation. The mind-boggling part about it is that the situation is easy to understand. Read More

12.13.16- And Now, for Something Entirely Different: Mrs. O’Leary’s Cow
Jeff Thomas

In 1871, a large portion of the city of Chicago burned to the ground. The Chicago Tribune attributed the fire to a cow owned by a Mrs. O’Leary. The Tribune stated that the cow kicked over a lantern as she was being milked, burning the barn and much of Chicago.

Whether the story is accurate is of little concern. (Somebody always has to be found to take the blame for catastrophe.) Whatever started the barn fire in Mrs. O’Leary’s neighbourhood, a seemingly minor event resulted in a major conflagration. Read More

12.12.16- Greenspan's Disastrous Legacy
David Stockman

It was nearly 20 years ago to the day that Alan Greenspan delivered his famous “irrational exuberance” speech. Little did he know how far it could go. Even less has his disastrous legacy been accorded the condemnation it so richly deserves.

At the time he mused publicly about the possibility that the Fed’s prodigious money printing during the first nine years of his tenure might fuel an excess of animal spirits in the stock market, the NASDAQ 100 stood at 850.Less than 40 months later the index peaked in late March 2000 at just under 4600. Read More

12.10.16- No Surrender in the Fed’s
“War on the Markets”

Bill Bonner

BALTIMORE – People never intend to bring disasters upon themselves. But they sometimes put themselves in situations in which disaster is the only way out.

The War Between the States was supposed to be quick and decisive. The glorious histories of the war were already written – at least in the minds of the combatants – by the time of the First Battle of Bull Run. Read More

12.09.16- Inflation Is Not About Price Increases
Frank Shostak

There is almost complete unanimity among economists and various commentators that inflation is about general increases in the prices of goods and services. From this it is established that anything that contributes to price increases sets in motion inflation.

A fall in unemployment or a rise in economic activity is seen as a potential inflationary trigger. Some other triggers, such as rises in commodity prices or workers’ wages, are also regarded as potential threats.

If inflation is just a general rise in prices as the popular thinking has it, then why is it regarded as bad news? What kind of damage does it do? Read More

12.08.16- Cracks in the Bond Market
Ryan McMaken

Foreign USTreasury Bond dumping continues, and even accelerates. China and the Saudis are selling USTreasurys in a near panic. Foreign central banks liquidated a record $375 billion in USGovt debt in the last 12 months. An American disaster lies in the making from debt saturation, debt overload, and debt dumping. It is all denied by the Washington mouthpieces and the Wall Street handlers, as they lie. The USGovt debt default is within view, dead ahead.

One month ago in October tally, the USFed update of Treasurys held in custody revealed a frightening picture of foreign sales, big sales, even accelerated sales. The total amount of custodial paper had fallen to $2.805 trillion, the lowest since 2012. One month later, foreign central banks continued their relentless liquidation of US debt paper, as measured by the same custody account. Read More

12.07.16- The Problem Is A Single Central Bank…Not A Single Currency
Steve Saville

The euro-zone appears to be on target for another banking crisis during 2017. Also, the stage is set for political upheaval in some European countries, a general worsening of economic conditions throughout Europe and widening of the already-large gaps between the performances of the relatively-strong and relatively-weak European economies. It’s a virtual certainty that as was the case in reaction to earlier crises/recessions, blame for the bad situation will wrongly be heaped on Europe’s experiment with a common currency.

The idea that economically and/or politically disparate countries can’t use a common currency without sowing the seeds for major problems is just plain silly. It is loosely based on the fallacy that economic problems can be solved by currency depreciation. Read More

And Now, for Something Entirely Different:
Fake News equals Fake Markets…

Bill Holter

Growing up in the 1960′s, I can still remember hearing and reading about Russian propaganda. While I am certain some of what the Western press reported was “spun”, even a 10-year-old could see through much of what Russia was trying to portray to its people.

Fast forward to present day, we seem to have switched places. The current mainstream media reports defy nearly any and all logic on a daily basis. Reporting has obviously been very poor for many years and it really did not matter what the subject was. Economics, finance, geopolitics, home grown politics, it has not mattered, logic has been turned on its head. I could go through example after example but would now require a book …or more likely a “series” of books. Read More

Who’s On Deck at the Fed?
Lance Gaitan

You may remember that in early September I wrote about the Federal Open Market Committee (FOMC) – basically, the Fed officials who vote on monetary and interest rate policies, which govern a massive part of our economy. They try to guide our economy through the booms and busts of business cycles (how well you think they do that probably depends on how your portfolio looks).

These all-but unknown folks have their hands on the levers of the economy, so I took a look at the FOMC voting member backgrounds and asked: what qualifies these people to decide if savers get punished with lower interest rate payments or borrowers get access to loans with reasonable repayment terms? Read More

12.03.16- Trump: what dangers does he face
from Globalists?

Jon Rappoport

As I keep emphasizing, Trump achieved two great things in his campaign for the presidency: he stopped Hillary Clinton from occupying the Oval Office, and he ran against big media, helping to further destroy its reputation.

From here on, we shall see.

How many compromises will the new president permit? How many will he seek? To put it another way, how many covert victories will arch-Globalist David Rockefeller and his associates pile up? They are, of course, aware that Trump has promised to kick the can of Globalism down the road, stop the excesses of “free trade,” and bring stolen jobs back to America. What actions will they take against Trump? Read More

12.02.16- Abolish Corporations
Daily Bell Staff

Don’t Lower Corporate Taxes. Abolish Them … Lowering the corporate tax rate appears to be all the rage. Donald Trump has promised a cut to 15 percent from 35 percent in the U.S., and British Prime Minister Theresa May has pledged to make the U.K.’s corporate tax the lowest in the G-20, which would mean taking it lower than Trump intends to … Now that business-friendly governments appear to have some leeway, they should go back to the old idea of eliminating corporate levies and just taxing personal income and consumption. Bloomberg

Bloomberg is suggesting in this article that corporate taxes should be abolished because corporations will make more money and that in turn will benefit their workers and society generally. Read More

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