04.16.21- Federal Reserve Propaganda Hour Fail
JHAnders

It's that time again when CBS's 60 Minutes pretends to do financial journalism by asking coordinated preplanned "hard-hitting questions" to manipulate their mostly aged and elderly tell-a-vision viewers.

We've covered other softball public relations pieces that 60 Minutes has produced on this SD Bullion channel; you might recall seeing a short video we produced in early 2020 entitled, "JPMorgan Silver Crime Charges to NY Fed REPO Loan Ramp." Read More

04.15.21- The Middle Class Has Finally Been Suckered Into The Casino
Charles Hugh Smith

The Fed's casino isn't just rigged; it's criminally unstable.

The decay of America's middle class has been well documented and many commentators have explored the causal factors. The bottom line is that this decay isn't random; the income of the middle class isn't going to suddenly increase at 15 times the growth rate of the income of the top 0.1%. (see chart below) Read More

04.14.21- Inflation Is in Sight
Bill Bonner

Like pilgrims crossing the Atlantic, we keep our eyes on the horizon, watching for land.

Consumer price inflation… it must be out there somewhere.

We’ve been headed in that direction for many years. And lately, huge gusts of big spending/big printing… from Donald Trump and Joe Biden… have been driving us forward. Read More

04.13.21- Rabo: When It Comes To Inflation,
What One Does And Doesn’t See Is All Political

Michael Every

On Sunday on ‘60 Minutes’, Fed Chair Powell said “We can wait to see actual inflation before we raise interest rates.” Well, today is the US inflation report. The market consensus is headline prices will rise 0.5% m/m, which would be around 6% y/y annualised, and on a straight y/y basis CPI will go from 1.7% to 2.5%. Of course, excluding food and energy CPI is seen rising just 0.2% m/m, or around 2.4% annualised, and up from 1.3% to 1.5% y/y. Yet the Fed won’t see any actual inflation in those numbers. When it comes to inflation, what one does and doesn’t see is all political. Read More

04.13.21- Rabo: When It Comes To Inflation,
What One Does And Doesn’t See Is All Political

Michael Every

On Sunday on ‘60 Minutes’, Fed Chair Powell said “We can wait to see actual inflation before we raise interest rates.” Well, today is the US inflation report. The market consensus is headline prices will rise 0.5% m/m, which would be around 6% y/y annualised, and on a straight y/y basis CPI will go from 1.7% to 2.5%. Of course, excluding food and energy CPI is seen rising just 0.2% m/m, or around 2.4% annualised, and up from 1.3% to 1.5% y/y. Yet the Fed won’t see any actual inflation in those numbers. When it comes to inflation, what one does and doesn’t see is all political. Read More

04.12.21- Today’s Inflation is
Deliberate and Disastrous

Bill Bonner

(Editor's Note: Inflation is theft. A little inflation is a little theft, and a lot of inflation is a lot of theft. There is nothing natural about inflation. The Federal Reserve is the only cause of inflation in the U.S.A., and a major cause of inflation throughout the world. Everyone involved with the Federal Reserve are thieves. The IRS is the collection agency for the Federal Reserve. They, too, are thieves. Not one in a hundred working there realizes it. But that hardly matters. We are talking about thousands upon thousands of thieves. No wonder we are in such a mess. - JSB)

Emma’s Note: As Bill has been outlining this week, the feds are conducting a dangerous monetary experiment. They’re seeing how much fake money they can pump into the system before it blows up. Read More

04.10.21- Is a Cultural Revolution Brewing in America?
Charles Hugh Smith

The lesson of China's Cultural Revolution in my view is that once the lid blows off, everything that was linear goes non-linear . There is a whiff of unease in the air as beneath the cheery veneer of free money for almost everyone, inequality and polarization are rapidly consuming what's left of common ground in America.

Though there are many systemic differences between China and the U.S., humans in every nation are all still running Wetware 1.0 and so it is instructive to consider what can be learned from China's Cultural Revolution 1966-1976. Read More

04.09.21- “I Don’t Know What the Blank I’m Doing”
Brian Maher

“I don’t know what the [expletive] I’m doing.”

Here you have the confession of a stock trader. A stock trader with three days’ experience.

“I just know I’m making money,” — perhaps $300 per day, he gloated. Read More

04.08.21- And Now, for Something Entirely Different: Who’s to Blame for America’s Decline?
Bill Bonner

Our view, for the benefit of new readers, is that the U.S. went badly off the rails around 20 years ago.

Since then, by almost every measure, it has been slipping and sliding downward. In everything, from life expectancies to income to GDP growth to freedom… to marriage rates and church attendance… America has lost ground. Read More

04.07.21- Is the Fed hiding something? Why weekly money supply data just got discontinued
Steve Hanke

View Video

04.06.21- Central Banking as an Engine of Corruption
Thomas DiLorenzo

Much has been written about the famous debate between Thomas Jefferson and Alexander Hamilton over the constitutionality of America's first central bank, the Bank of the United States (BUS). This was where Jefferson, as secretary of state, enunciated his "strict constructionist" view of the Constitution, making his case to President George Washington that since a central bank was not one of the powers specifically delegated by the states to the central government, and since the idea was explicitly rejected by the constitutional convention, a central bank is unconstitutional. Read More

04.05.21- And Now, for Something Entirely Different: Fox News star reveals “shot caller”
behind Joe Biden

Walter W. Murray

Obama has been the man behind the curtain (Wizard of OZ) from day one and most folks have been well aware of it.  Placing BUY-DEM and HAIRA$$ in the places they are in should tell all that, together, they haven’t got the brain cells to light a match.  Obama buying that mansion so close to the White House – having Valerie Jarrett move into as well should tell the story that this was all WELL PLANNED after HILLARY lost to Trump.  The fraudulent elections – that Kerry was illegally negotiating with foreign governments during the Trump administration – this was all well planned out and set up to take CONTROL and turn America into a MARXIST/COMMUNIST – ANTI CHRISTIAN – nation.  What better hand puppets than BUY-DEM & HAIRA$$ for the VENTRILOQUIST OBAMA to talk thru? Quite honestly,  Charlie McCarthy had more brain cells than those two have. Read More

04.03.21- The Property-Based Social Order Is Being Destroyed by Central Banks
Zachary Yost

Readers of the Mises Wire are no doubt familiar with the negative consequences of central banking and the inflationary capacity of fiat currency and how such a system drives malinvestment and leads to boom-bust cycles. Not only does the business cycle lead to the misallocation of resources from their natural ends of the structure of production, but it also drives resources into financialization, rather than the “real” economy. This financialization, which has been taking place since at least the First World War, has served, over time, to structurally undermine the morality of property in the eyes of the general public. As the increased popularity of socialism, at least in rhetorical terms, among the youth indicates this “evaporation” of property may reach a critical mass within the not-too-distant future. Read More

04.02.21- Say’s law and the destruction of savings
Alasdair Macleod

This article explains the fundamental mistake behind Keynes’s General Theory, the vade mecum for all macro and mathematical economists today. It is no exaggeration to say that his casual rejection of Jean-Baptiste Say’s economic theories in his off-hand interpretation of them, that demand creates its own supply, is at the root of thew global economic and monetary crisis today.

There never could be a simple aphorism that captures the writings of Say, whose Treatise ran to six editions in his lifetime, continually expanded as his carefully reasoned analysis evolved. Read More

04.01.21- February Money-Supply Growth Hit Yet Another All-Time High
Ryan McMaken

In February, money supply growth hit yet another all-time high. February’s surge in money-supply growth makes February the eleventh month in a row of remarkably high growth, and came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages. Read More

03.31.21- And Now, for Something Entirely Different: Bottom Line: Democrats are Afraid of You
Christopher Chantrill

I’m having a problem deciding whether the Biden administration is stupid or evil or just flat-out afraid of us Commoners.

And then I realized that it’s all three. Here’s why.

Our liberal friends never imagined that a Trump could happen. Nothing in their world prepared them for him. So what happens when you are confronted by something completely unexpected? You stop dead in your tracks. Read More

03.30.21- Exposed! The Hidden Inflation Eating Your Money
Adam Taggart

Do you feel like no matter how hard you work, it’s harder and harder to get ahead?

There’s a good explanation for that. And it’s maddening.

The government intentionally & dramatically underreports the true cost of living, and that fake low number is what most employers use when they set the wages they pay. Read More

03.29.21- The Investment Lessons We Forgot
Bill Bonner

People are neither always good nor always bad, but always subject to influence – A Diary dictum

YOUGHAL, IRELAND – There are not many benefits to growing old. We can hardly think of any at all.

You can’t play professional basketball. You won’t get the leading man role in community theatre. You have aches and pains everywhere…Read More

03.27.21- MMT Has Lit the Fuse on This Inflation Powder Keg
Peter Reagan

An economic framework called Modern Monetary Theory (MMT) governs the financial world today, but fails to account for the consequences of its practices. In fact, MMT is leading us to an extremely dangerous financial situation that could blow up at any time.

What is MMT?

Before we get to that, it helps to know what MMT means. It is a theory that states: Read More

03.26.21- Rabo: "Central Banks Are Gonna Need A Bigger Boat"
Michael Every

You’re gonna need a bigger boat” is still a classic movie scene that makes the hair on the back of my neck stand up. Clearly not just me: the meme still resonates with my generation, and John Williams’ instrumental sound of the shark still gets people my age straight out of the water.

It seems an appropriate title today given one wonders who said that about the vessel still blocking the Suez Canal: was it trying to do a U-turn? If one ever wanted to imagine what blockading the Suez Canal looked like physically, and what it would deliver to already-strained global supply chains economically, well, enjoy. This obviously risks exacerbating the cost-push inflation pressures we are already seeing in many sectors. Read More

03.25.21- An Inflationary Boom Is Coming
Bill Bonner

YOUGHAL, IRELAND – The Germans have marvelous words for things. Katastrophenhausse, for example. Even without knowing the language, you know you’re not going to like it.

Yesterday, colleague Tom Dyson reported seeing a glimpse of it coming:

The bond market expects the Consumer Price Index (CPI) to increase by 2.5% per year for the next five years, judging by the difference in yields between the 5-year Treasury and the 5-year inflation-protected Treasury (TIPS). That’s a 12-year high. Read More

03.24.21- The Federal Reserve Is Wasting Tons of Money
Bill Bonner

“Go too far. Stay too long. Can’t get back.” – Words of an old preacher

YOUGHAL, IRELAND – The bond market is on the move.

It packed up in August of last year, which now appears to have marked the top of the bull market in bonds that began 41 years ago.

And last week, Treasury yields (which rise and fall inversely with bond prices) topped 1.75% after Federal Reserve chief Jerome Powell let it be known that he was okay with rising inflation threats. Read More

 

03.23.21- Yield Curve Control: Another Recipe For Stagnation
Daniel Lacalle

Central banks do not manage risk, they disguise it. You know you live in a bubble when a small bounce in sovereign bond yields generates an immediate panic reaction from central banks trying to prevent those yields from rising further. It is particularly more evident when the alleged soar in yields comes after years of artificially depressing them with negative rates and asset purchases. Read More

 

03.22.21- Fed and Treasury Steer Their Unsinkable Ship toward Iceberg
David Haggith

This past week we got to observe Fed Chair Jerome Powell and the US stock market and the US bond market do everything I said they would do in their complicated shuffle of ships-and-icebergs:

“I’m sure many helium-headed stock investors believe the lilly-livered Fed will turn tail and run from its goal of letting inflation rise as soon as bonds begin to clobber stocks more seriously…. I believe the Fed is more committed than ever to raising inflation as it has been saying it wanted to do for years.” Read More

03.20.21- Peak in Yields Is Close
David Brady

When it comes to FOMC meetings, I always say “Don’t trust the first move” immediately after the announcement and the follow-up press conference. Yesterday was no different.

The initial response to the announcement was that the Fed was “uber dovish.” Bond yields eased back from their peaks earlier in the day, the dollar dumped, and Gold rose from the 1720s to 1750s. Silver and the miners followed suit. I didn’t buy it, citing 1760-65 in Gold as resistance and this: Read More

03.19.21- Spend Baby Spend! Fed Balance Sheet Up $113 Billion In A Single Week,
$450 Billion In Under 4 Months

WallStForMainSt

View Video

03.18.21- US 10-year Treasury yield tops 1.7% as Fed forecasts reverberate
Adam Samson

The 10-year Treasury has not held above 1.7% since before the market ructions triggered by the coronavirus crisis

Inflation expectations push borrowing costs to highest level since January 2020

Long-term US government bonds weakened sharply on Thursday after the Federal Reserve raised its growth and inflation forecasts but stuck to plans to keep short-term interest rates low until at least 2024. Read More

03.17.21- Inflation Outlook: Likely Worse Than Expected
Gregory van Kipnis

Though money supply has been growing rapidly over the period since the Great Recession in 2008, not much of it has been put to productive use through credit extension to finance economic activity. Instead, the Federal Reserve Bank (Fed) has incentivized the banking system to hold excess reserves at the Fed. The Fed’s policy was to provide a safe yield – the so named IOER, or interest on excess reserves – if reserves were parked in an account at the Fed. Required reserves. Read More

03.16.21- Stocks in Bondage but Fed Not Fazed
David Haggith

Chairman Powell of the People’s Bank of the USSA would have you believe inflation is no concern because the Federales are in control. The bond vigilantes, with their pistols shoved into his back, would have you believe Powell is their prisoner and is being hauled off to the stockade where his friends in stocks are looking a bit worried about their futures.

I’ve been slow in getting things written this month because we moved off our farm, and my wife broke her leg at the same time; so I had her share of the packing, moving and organizing to do on top of my own plus her caregiving and an all-day hospital journey for her surgery, though I got some much-needed help from family members. Read More

03.15.21- Fifty Basis Points To Disaster
MN Gordon

Fiscal stimulus, including the latest $1.9 trillion American Rescue Plan Act, is a terrible joke.  And the means for financing it is a terrible fraud.  A massive deficit, piled upon a mammoth debt, made possible by dollar debasement.

Extreme credit market intervention by the Federal Reserve is a prerequisite.  So, too, is the utter denial of price inflation by the Bureau of Labor Statistics.  This week’s consumer price index (CPI) propaganda reported the all items index increased 0.4 percent in February and 1.7 percent over the last 12 months. Read More

 

03.13.21- The Greatest Problem of Investors
Brian Maher

“The financial memory,” argued John Kenneth Galbraith, “should be assumed to last, at a maximum, no more than 20 years.”

Why 20 years?

This is normally the time it takes for the recollection of one disaster to be erased and for some variant on previous dementia to come forward to capture the financial mind. It is also the time generally required for a new generation to enter the scene, impressed, as had been its predecessors, with its own innovative genius. Read More

03.12.21- So This Is How The U.S. Dollar Dies…
Michael Snyder

Our leaders are killing the U.S. dollar, and it is being done to thunderous applause…

Our leaders are killing the U.S. dollar, and it is being done to thunderous applause.  The House and the Senate have now both passed the 1.9 trillion dollar “COVID relief bill”, and it will go to Joe Biden’s desk for his signature.  Of course we don’t actually have 1.9 trillion dollars to spend on yet another “COVID relief” package.  In fact, we don’t even have one dollar to spend on another “COVID relief” package.  Every single dollar that is spent will have to be borrowed, and that will soon push our national debt beyond the 30 trillion dollar mark.  Sadly, our politicians seem convinced that giant mountains of dollars can be printed, borrowed and spent indefinitely without any repercussions, and most Americans fully support what they are doing.  In fact, one recent poll found that a whopping 78 percent of all Americans support more stimulus checksRead More

03.11.21- The Fedcoin is Coming
Keith Weiner

Before we talk about Fedcoins, let’s look at the old school non-digital, non-blockchain, coin. Gold. And silver.

Since January 4, the price has dropped about $244. And the price of silver has fallen about $4. Are these buying opportunities? Or the end of the brief gold bull market of 2020 (i.e. Covid)? It helps to return to the idea that gold is the unit of measure of value. Not as a rhetorical device to sell gold, but because it gives a clearer picture. Read More

03.10.21- Powell And Yellen – Team Fed
Kelsey Williams

Flashback 11/21/2017:

“President Trump nominated Jerome H. Powell as the new Chairman of the Federal Reserve Bank. Don’t look for much to change. And Janet Yellen’s announcement that she will resign from the board upon Mr. Powell’s induction as board chair is pretty much a non-event.” (see New Fed Chairman, Same Old Story) Read More

03.09.21- Approaching Zero Velocity! The Federal Reserve’s Destruction Of The Purchasing Power of the US Dollar
Anthony B Sanders

Since its creation in 1913, The Federal Reserve has helped obliterate the purchasing power of the US Dollar.

And just wait for Biden’s $1.9 trillion in government spending (the first of many) to hit the economy. 

Now you can see why investors seek out gold, silver, Bitcoin and other sources of protection from The Federal Reserve. Read More

 

03.08.21- Money And Statistical Delusions
Alasdair Macleod

"I can prove anything with statistics, except the truth"

-- Lord Canning, c. 1819

Does Canning’s aphorism still hold true, given that data collection and statistical analysis have progressed beyond all recognition in the last two hundred years? This article tests that proposition. Read More

03.06.21- "Own Gold" - Dylan Grice Warns "Central Banks Are Going To Overcook The Economy"
Mark Dittli

Dylan Grice is concerned. The co-founder of Calderwood Capital and former strategist at Société Générale sees smaller and larger bubbles emerging all over financial markets. «There are clear signs of excess», says the author of the monthly «Popular Delusions» report. Still, Grice characterizes his current investment stance as reluctantly bullish: «Central banks will overcook the economy, everything is set for a few years of overstimulation in monetary and fiscal policy.» Read More

03.05.21- The Pain Is Almost Over
David Brady

My apologies for the tardiness of my article this week, but given my focus on bond yields and the implications for precious metals and miners, I wanted to wait to hear what the chief ‘Facilitator of Spending’, Fed Chair Powell, had to say during a Wall Street Journal conference today.

Here are the highlights with my comments below:

“We expect that as the economy reopens and hopefully picks up, we will see inflation move up through base effects,” Powell said. “That could create some upward pressure on prices.” Read More

03.04.21- When Does This Travesty Of A Mockery Of A Sham Finally Implode?
Charles Hugh Smith

The mutually reinforcing crises aren't in the future, they're here now, and Jay Powell's shuck-and-jive has lost its magical powers to cloak the rot with speculative bubbles.

How many more times do we have to watch Jay Powell claim his speculative bubble isn't a bubble, and that his massive expansion of billionaires' fortunes will magically create jobs for all those living in the real world he's created of stagnation, depression and inequality?Read More

03.03.21- Stagflation Cometh
Doug French

A gentleman who does work for us sent me a text recently saying the price of his supplies has increased 20 percent, so he wants to increase his monthly fee 10 percent. It was a nice way to ask, and I said sure, especially given that he’s willing to take a haircut on his labor to make the increase more palatable.

Chairman Jerome Powell would be happy to hear this story, as the Federal Reserve prints mightily to push the CPI (Consumer Price Index) to 2 percent and beyond. Though perhaps Chairman Powell would prefer my tradesman to pass a full 20 percent price increase to me.Read More

03.02.21- Sisyphean Printing Will Kill
the Dollar & Bonds

Egon von Greyerz

Understanding four critical but simple puzzle pieces is all investors will need to take the flood that leads to fortune.

Why then will the majority of investors still take the wrong current and lose their ventures?

Well because investors feel more comfortable staying with the trend than anticipating change.Read More

03.01.21- Despite The Fed, The Bond Market Is Hiking Rates
Lance Roberts

Last week, we discussed that the market was likely starting to adjust for higher rates. As we stated, historically, there is little room for error as higher rates undermine one of the critical “bullish supports” that low rates justify high valuations.

This past week, rates jumped higher, putting a further pause in the stock rally for now. As we stated over the last few weeks, the upside remains limited with the money-flow sell signal still intact. (The vertical dashed blue line denotes when the signals initially triggered.)Read More

02.27.21- 'Brace For Rampant Inflation': Hedge Fund Billionaire Stunned At "Market Craziness", Sees "Trouble Ahead"
Tyler Durden

In 2012 Elliott Management's Paul Singer correctly warned that financial system leverage and technology would "serve as an accelerant in the next crisis":

"The major message that I want to give you (and I’ve invited challenge on both parts of my thesis here and I’ve never had anybody challenge it): The major financial institutions in the US and around the globe are utterly opaque; and The next financial crisis will happen faster, more suddenly."

Risk did indeed happen fast, numerous times since.Read More

02.26.21- Don’t Fight The Fed?
Bill Blain

“The wilder and more ridiculous something is, however, the firmer and more solid the evidence will have to be.”

There is an old market rule – don’t fight the Fed. Jay Powell has been crystal clear: rates are staying lower for longer. But the ongoing sell-off in Treasuries, and rising global bond yields, paints an interesting story of a market unconvinced rates can be held down, and therefore the cosy rationale behind the current stock market is over. Unconvinced is not the same as certain.Read More

02.13.21- The Foundation for Potential Price Hyperinflation Is Being Laid
Peter Reagan

The Federal Reserve sure seems to have a tough time finding and reporting signs of rising inflation — especially when it’s hidden in other sectors like a lack of demand for energy.

A recent example of the Fed’s “inflation blindness” comes from a speech Chairman Jerome Powell gave to the Economic Club of New York. According to a MarketWatch piece that reported on that speech: Read More

02.12.21- The Fed Faces Two Choices
Brian Maher

A man shipwrecked bobs along in his lifeboat…

The cruel sun cooks him. His thirst tortures him. His sufferings are doubled, tripled and quadrupled by this impossible irony:

Water, water is everywhere — yet there is scarcely a drop to drink. Salt water in any quantity would murder him. Read More

02.11.21- Fed’s Near-Zero Rates Might Sound Good (Until This Happens)
Birch Gold Group

In some cases, the idea of a “near-zero interest rate” is a good thing. For example, if you qualify for 0% interest when you buy a car, you save money.

But it’s much different when your retirement savings depends on getting a return on investment (ROI). In that case, near-zero interest rates can put pensions and other retirement accounts in serious jeopardy. Read More

02.10.21- And Now, for Something Entirely Different: Debt and the Demise
of the Middle Class

Charles Hugh Smith

Unfortunately for those at the top who've benefited immensely from speculative bubbles, speculative bubbles don't create a vibrant middle class--they push what's left of the middle class off a cliff. 

What exactly is the Middle Class and what unique role does it serve in the economy?Given that the Middle Class is constantly invoked by politicos and economists, you'd think the status quo had a solid understanding of the Middle ClassAlas, it isn't that simple.  Read More

02.09.21- Government’s Money Monopoly and the “Great Reset”
Dr. Thorsten Polleit

The unbacked paper money system is an economically and socially destructive system—with far-reaching and harmful economic and social consequences beyond what most people would imagine. Fiat money is inflationary; it benefits some at the expense of many others; it causes boom-and-bust cycles; it corrupts the morality of society; it will ultimately end in a major bust; and it leads to overindebtedness. Read More

02.08.21- And Now, for Something Entirely Different: Proof That the US November Election Was Stolen Exists in Abundance
Paul Craig Roberts

The official narrative that there was no election theft is likely the largest lie ever perpetrated on the world.  The lie is so vast and so fragile that everyone who disagrees with the official narrative is suppressed, deplatformed, kicked off social media, ostracized, and fired from their job in order to protect the lie from examination and exposure.  In Michigan the state attorney general is attempting to debar attorneys who represented cases of electoral theft. Massive effort was made—including an orchestrated “storming of the Capitol”—to insure that the evidence would not be presented and that the majority of the population would never encounter the evidence. Read More

02.06.21- The U.S. Dollar Could Be Nearing Its “End Game”
Birch Gold Group

From foreign countries trying to dethrone the dollar’s hegemony as global reserve currency, all the way to rising inflation weakeningit… the U.S. dollar is in trouble.

Pundits like Jim Rickards said(back in 2016): “The dollar won’t lose its reserve currency status overnight” — and he was right. But a new and disturbing signal could finally be revealing the end game.Read More

02.05.21- Inflation Is Coming. Here’s How I’m Getting Ready
Brett Owens

If you’ve read my articles in the last few weeks, you may have noticed I’ve been writing about inflation more lately. I’m doing so because your income portfolios—especially your bonds!—are at risk as a result of recent money printing.

My recent monetary focus has taken many readers by surprise. After all, we haven’t seen sustained inflation in 40 years. Nothing like a four-decade lull to lure an investor into a false sense of “60/40 retirement portfolio” security! Read More

02.04.21- “It Can’t Happen Here”
Jim Rickards

The Federal Reserve printed $4 trillion in the years following the 2008 crash, expanding its pre-crisis balance sheet of about $900 billion to roughly $4.5 trillion. Many people thought, if hyperinflation were ever going to happen in the U.S., it would have already.

Well, it never happened. Today, in response to the pandemic and the economic lockdowns that followed, the Fed has cranked up the printing press to even higher levels. It’s printed almost as much money in one year as it printed in the several years after the financial crisis. Read More

02.03.21- Yellen Gets Ethics Waiver To Lead Regulator Meeting On Gamestop Insanity After Taking $810K From Citadel
Tyler Durden

Once it became clear - just a few seconds after AOC first rage-tweeted about RobinHood refusing to let "the people" trade more shares of $GME and $AMC before adding that she'd support a public hearing on what had just happened - that all the key players in the "WallStreetBets"/"Gamestop"trading saga would soon be dragged in front of Congress like a gaggle of tech CEOs, the newly elected Democrats and their hand-picked economic team were faced with a critical question: who exactly was going to preside over these proceedings on the regulatory side, since they are virtually all compromised by key connections to the financial services industry, and not just the big banks. Read More

02.02.21- Fed Chair Powell: Inflation Can Rise In 2021…So What Happens to Gold?
Arkadiusz Sieron

The first FOMC meeting in 2021 has concluded without any changes in monetary policy, while Powell sent a few dovish signals during his press conference.

The FOMC released on Wednesday (January 27) its newest statement on monetary policy. Generally speaking, the statement was little changed. The main alteration is that the U.S. central bank has acknowledged that “the pace of the recovery in economic activity and employment has moderated in recent months”. Wow, how did they notice that? They really must hire professionals! All jokes aside, this modification in the FOMC statement is dovish. Read More

02.01.21- And Now, for Something Entirely Different: No Good Reason to Be Short
Ted Butler

The current short position in COMEX silver is mostly held by 8 major financial firms. We can only guess who they are because their identities are protected. According to the COT reports, the biggest 4 are short nearly 60 thousand contracts and the next 4 are short nearly 20 thousand contracts. That’s a total of 400 million silver ounces. Annual mining production of silver amounts to less than 800 million ounces. The short position in silver dwarfs any other commodity. Furthermore, it is concentrated in a few hands and thus open to manipulation.  Read More

02.30.21- The Federal Reserve Is Manipulating the U.S. Stock Market
Dan Denning

Emma Walsh here, managing editor of the Diary.

Psychologists use the term “gaslighting” when a manipulator is trying to get someone else (or a group of people) to question their own reality, memory, or perceptions.

Today’s guest editor believes the feds are using this strategy to distract the American public from a massive power grab by the government… And COVID-19 is the Trojan Horse inside which all their monetary and technological fantasies have been smuggled. Read More

01.29.21- The Dollar's Reserve Currency Status Won't Last Forever
Doug French

The Federal Reserve and the confederation of central banks which follow Chair Powell and his lieutenants at the Eccles Building have flooded the world with fiat script which is only limited by Keynesians' and modern monetary theorists' imaginations. In this flurry of metaphorical printing, one country, Russia, has loaded its central bank balance sheet not with the speculation de jour, bitcoin, but instead with the barbaric relic gold.

Tellingly, Russia’s stockpiling began in 2016, and on the eve of the president’s departure from the White House, Vladamir Putin and Elvira Nabiullina, president of Russia’s central bank, had more gold than US dollars stockpiled. Read More

01.28.21- Understanding the Roots and Causes of Inflation
Ludwig von Mises

If the supply of caviar were as plentiful as the supply of potatoes, the price of caviar—that is, the exchange ratio between caviar and money or caviar and other commodities—would change considerably. In that case, one could obtain caviar at a much smaller sacrifice than is required today. Likewise, if the quantity of money is increased, the purchasing power of the monetary unit decreases, and the quantity of goods that can be obtained for one unit of this money decreases also. Read More

01.27.21- The Fed's Ever-Growing
Golden Footprint

Michael Lebowitz

A special thank you to Alexander Stahel for providing us historical data on real interest rates.

What is a Dollar?

The value of a dollar is a figment of your imagination. A “greenback” is a worthless piece of paper backed by an intangible promise- the “full faith and credit” of the U.S. government. Its value rests on a necessary belief that one can transact with it today and tomorrow. Therein lies the value of any fiat currency. Read More

01.26.21- The Interest Rate Threshold
Keeps Dropping

Michael Pento

Initial Jobless claims totaled 900,000 for the week ending January 16th, after shedding 965,000 in the week prior. These numbers are over four times greater than they were a year ago. I find this to be not only sad but also remarkable in that we are still losing close to one million jobs per week a year after the Wuhan virus first broke out. More signs of economic stress were found in the December Retail Sales report. Sales dropped 0.7% last month, and the data for November was revised down to show a decline of 1.4%, instead of the 1.1% previously reported. Figures such as these illustrate just how fragile the economy still is, which will put upward pressure on the level of outstanding debt. Read More

01.25.21- Inflation Is Spreading Broadly into the Economy. Amid Surging Costs, Companies Raise Prices, and Customers Pay them, Despite Weak Economy, 10 Million Missing Jobs
Wolf Richter

“Not only have the last two months seen supply shortages develop at a pace not previously seen in the survey’s history, but prices have also risen due to the imbalance of supply and demand.”

The signs of inflation building up in the economy are now everywhere. IHS Markit, in its release of the Flash PMI with data from companies in the services and manufacturing sectors, added to that evidence. Read More

01.23.21- How the Fed Fails
Charles Hugh Smith

The Fed has a binary choice: preserve America’s global hegemony or further enrich the billionaires. You can’t have both.

The Fed will fail as a result of two dynamics: diminishing returns and the U.S. dollar’s role as a global reserve currency. The Fed’s reign as the godhead of financier-banker supremacy has been fun and games for the past 12 years of stock market euphoria, but that’s about to change. Read More

01.22.21- Hunger Games and COVID Games
Gary Christenson

At a glance:

  • COVID Games have devastated large sections of the economy, as well as
    state and federal budgets.


  • Declining federal revenues plus massive expenditures have increased debt and forced the Fed to “print” to fund deficits.

  • Gold and silver prices will rise. A currency crisis is possible. Read More

01.21.21- The destructive force
and failure of QE

Alasdair Macleod

This article concludes that quantitative easing as a means of stimulating economies and financing government deficits will fail. The underlying assumption is that the transmission of additional money to non-banks in order to inflate financial assets, and to banks to cover government finances, will become too great in 2021 for it to succeed without undermining fiat currencies and financial markets. Admittedly, this opinion stands in stark contrast to the common Keynesian view, that once covid is over economies will start to grow again. Read More

01.20.21- Will Biden 'Extinguish' The Dollar?
Egon von Greyerz

If president Biden wants to save the US economy, his first measure should not be to print $trillions of worthless new money but instead tell his secretary of the treasury Janet Yellen to withdraw all debased currency from circulation just as Aristophanes suggested in 405BC, Copernicus in 1517 and Gresham in 1560.

There is only one problem with withdrawing the debased dollars… THERE WOULD BE NO MONEY IN CIRCULATION AT ALL since all dollars are totally debased. Read More

01.19.21- Inflation Breeds Even More Inflation
Thorsten Polleit

I. Warning against Fiduciary Media

Early in the 20th century, Ludwig von Mises warned against the consequences of granting the government control over the money supply. Such a regime inevitably creates money through bank credit that is not backed by real savings—a type of money that Mises termed “fiduciary media.” Read More

01.18.21- "Simply Insane" Central Banks Attack Cryptocurrencies
Daniel Lacalle

The main central banks of the world are increasing money supply in an uncontrolled and unjustified way in what is so far the largest transfer of wealth from savers to governments ever. While savers see their deposits disappear with negative real rates and devaluations, while central banks seek at all costs to impoverish their neighbors through devaluations to benefit deficit-ridden states, financial repression continues to generate responses from citizens, who seek to safeguard their savings from the monster confiscator: devaluation and inflation. Read More

01.16.21- And Now, for Something Entirely Different: What to Expect in 2021... Madness, Mayhem, Manipulation and More Tyranny
John W. Whitehead

“Twelve voices were shouting in anger, and they were all alike. No question, now, what had happened to the faces of the pigs. The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.”
George Orwell, Animal Farm

What should we expect in 2021? Read More

01.15.21- "The Fed Is In A Fantastic Position Where The More It Fails, The More It Is Needed"
Michael Every

The Fed’s Powell made it clear yesterday: “Now is not the time to be talking about exit. I think that another lesson of the global financial crisis is be careful, not to exit too early.” Folks, that is the *only* lesson the Establishment has learned from the GFC: like it is always “more cowbell”, it is always more central bank regardless of the song being played.

  • Inflation? More central bank: 2% CPI here we come one day, honest.
  • Inequality? More central bank (in more ways than one, ironically).
  • Climate change? More central bank: 2 degrees Celsius is another target now. Read More

01.14.21- US Government Runs Biggest December Deficit in History
Peter Schiff

The US government ran the biggest December budget deficit in history last month.

The December budget shortfall came in at $143.6 billion. That compares with a $13.3 billion deficit in December 2019, according to the Monthly Treasury StatementRead More

01.13.21- Is Inflation In Your Best Interest,
Or The Fed's?

Michael Lebowitz

“We want to see American citizens pay higher prices for milk, butter, eggs, bread, and toilet paper. To reach our goal, we will adjust monetary policy to make these goods and other goods and services more expensive in the future.”

How long before mobs storm the Mariner Eccles building (Fed headquarters) if Jerome Powell were to make such a statement?  Read More

01.12.21- Big-Spending Democrats Will Solidify COVID-19-Induced Monetary Policy
Bill Bonner

The price tag will be high.– President-elect Joe Biden

WEST RIVER, MARYLAND – Wow… What a week! What a way to begin a new year!

Many people were outraged and appalled by last week’s shenanigans in Washington. And this morning, calls for impeachment, destitution, or lynching are still running riot over the internet. Read More

01.11.21- The Tyranny Nobody Talks About
Charles Hugh Smith

All the tricks to hide our unaffordable cost structure have reached marginal returns. Reality is about to intrude.

There is much talk of tyranny in the political realm, but little is said about the tyrannies in the economic realm, a primary one being the tyranny of high costs: high costs crush the economy from within and enslave those attempting to start enterprises or keep their businesses afloat. Read More

01.09.21- Issues 2021
Doug Nolan

Fragility. Last year exposed myriad fragilities. The U.S. stock market went from all-time highs to an emergency FOMC meeting in ten sessions. The S&P500 lost more than a third of its value in just 21 trading days. Q2 GDP collapsed at a 31% annualized rate. Financial conditions tightened dramatically, with illiquidity and dislocation erupting throughout the markets – equities and fixed income. The year demonstrated the fragility of social stability. Frail confidence in our institutions was similarly revealed. Read More

01.08.21- And Now, for Something Entirely Different: Did Peaceful Rally End
in False Flag With Antifa?

Ginny Garner

About one million Trump, election integrity and Constitution supporters including this writer peacefully protested in Washington DC on January 5 and 6 at the Save America Rallies. The fake news media predictably is focusing on the US Capitol break-ins and ignoring the peaceful protests which constituted time-wise 99% of the two day events and why they were there – to protest election fraud and support the US Constitution and President Trump. Read More

01.07.21- The Worse Things Get, The More The Stock Market Likes It
Michael Snyder

No matter how bad things become, stock prices just keep going up and up and up.  In 2020, we experienced the worst public health crisis in 100 years, the U.S. economy was plunged into the worst economic downturn since the Great Depression of the 1930s, Americans filed more than 70 million claims for unemployment benefits, and civil unrest raged in major cities all across the United States.  Meanwhile, we witnessed the greatest stock market rally in American history.  No matter what happened, nothing could seem to dampen the wild euphoria on Wall Street.  Read More

01.06.21- Will the Fed Support Gold Prices in 2021?
Arkadiusz Sieron

Gold ended 2020 at $1,891, partially thanks to monetary policy easing. In 2021, the Fed may not trigger a comparable rally in gold, but it should offer gold prices some support.

Welcome to 2021! I hope that it will be a wonderful year for all of you; a much healthier, calmer and normal year than 2020 was. And even more profitable of course! Indeed, at least gold bulls could be satisfied with the last year, in which the price of gold jumped from $1,523 to $1,891 (London A.M. Fix)! It means that the yellow metal gained more than 24 percent, as the chart below shows. Read More

01.05.21- And Now, for Something Entirely Different: Giving Up the Ghost
James Howard Kunstler

Things are shaking loose. Secrets are flying out of black boxes. Shots have been fired. The center is not holding because the center is no longer there, only a black hole where the center used to be, and, within it, the shriekings of lost souls. Will the United States go missing this week, or fight its way out of the chaos and darkness?

Whatever occurs in this strange week of confrontation, Joe Biden will not be leading any part of it. Where has he been since Christmas? Back to hiding in the basement? Did the American people elect a ghost? Even if this storm blows over, could Joe Biden possibly claim any legitimacy in the Oval Office? And then what happens with the rest of the story — which is an epic economic convulsion sharper than the Great Depression — as time is unsuspended and the year 2021 actually unspools?  Read More

01.04.21- Will The Fed Destroy The Dollar?
Adam Taggart

The two smartest Fed-watchers we know share their forecasts

The Federal Reserve’s official target rate of inflation is 2% per year.

Put another way, that means that if the Fed hits its target, the value of today’s dollar will only be worth around a third of its current value in 50 years.

Think that can’t happen? It already has. Read More

01.02.20- Is 2021 the Death of Fiat Currency?
Marin Katusa

Do you have FOMO yet?

If you didn’t put your cash to work in 2020, then you’re fighting the tide ignited by the Fed.

Never in the history of the world has so much money been printed.

Plus, if you’re an accountant and love seeing balanced books, you’ve likely never had your eyelids twitch more than this year. Read More

01.01.21- Will The Fed Lose Control In 2021?
Alasdair Macleod

The most important event in the new year is likely to be the Fed losing control of its iron grip on markets. The dollar’s declining trend is already well established against other currencies and commodities, leading to this outcome.

Events in 2021 will be the consequence of a developing hyperinflation of the dollar. Foreign holders of dollars and dollar assets - currently totalling $27.7 trillion - are sure to increase the pace of reducing their exposure. This is a primal threat to the Fed’s policy of using QE to continually inflate assets in the name of promoting a wealth effect and continuing to finance a rapidly increasing federal government deficit by suppressing interest rates. Read More

 

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