07.31.21- The Latest Lie from on-High: An “Independent Federal Reserve”
Matthew Piepenburg

Earlier in July, U.S. President Biden came away from a meeting with Fed Chairman Jerome Powell and calmly announced that in addition to inflation being “short term,” we should fear not, as Biden also “made it clear to Chairman Powell that the Fed remains independent,” but “will act as needed.”

Whewwww. Where to even begin in unpacking the lighthouse of reality behind so much verbal fog? Read More

07.30.21- The "Real" Real Yield Is -4.15%... And We Are Stuck With It Forever
Tyler Durden

As we pointed out earlier this week, 10 year real yields spent the past few days trading around all-time lows. However, due to data limitations, we can only measure this using TIPS from 1997 onwards. So what do other measures that go back further show?

That is the question posed by Deutsche Bank credit strategist Jim Reid who plotted three real yield series; Read More

07.29.21- Shrinkflation, Inflation's Sneaky Cousin, Is On The Rise
Klajdi Bregu

Inflation has been on the rise for the past year and in the last few months it has accelerated. In June 2021, inflation, measured by the Consumer Price Index (CPI), hit the highest level since 2008. By inflation, economists refer to the increase in the general level of prices, which means that prices on average are increasing. The Bureau of Labor and Statistics (BLS) has a basket of goods and services that it tracks and uses to create a measure of the CPI. While inflation is the topic of the day in the news media and everyday conversations, many have not heard about its sneaky cousin, shrinkflation. Read More

07.28.21- If Inflation Is “Transitory” Why Is This Happening?
Peter Schiff

Federal Reserve Chairman Jerome Powell continues to insist the surge of rising prices is “transitory. But if this is true, why are inflation projections for 2022 rapidly rising? It seems the markets aren’t buying the transitory theme.

As prices continue to skyrocket, Americans paying more and getting less. Nevertheless, Powell stuck to his guns during his most recent trip to Capitol Hill. Transitory is his story, and he’s sticking to it! Powell conceded inflation “has increased notably and will likely remain elevated in coming months before moderating.” But he continued to insist we’re really only seeing significant price pressures from a few sectors such as the auto industry and they will abate.  Read More

07.27.21- The Mainstream Pundits Are the Real Stopped Clocks
Peter Schiff

Mainstream pundits sometimes accuse Peter Schiff of being a “stopped clock.” They admit he’s right occasionally, but only by virtue of sticking to the same narrative, talking about the malinvestments and misallocations in the economy and warning about an impending crisis. In this clip from his podcast, Peter said it’s the mainstream regulars on financial networks like CNBC who are the real stopped clocks.

Peter said you can never count on mainstream “financial experts” to warn you about an impending crisis. Read More

07.26.21- Judge Refuses To Identify Five Market Participants Accused Of VIX Manipulation
Tyler Durden

Long before meme stocks came along and reddit discovered what Zero Hedge readers had known since 2013, namely that to outperform the market all one has to do is go long the most shorted stocks, there were inverse VIX trades and the relentless moneymaking juggernaut that was shorting volatility, i.e. collecting stacks of cash in front of a dormant volatility steamroller. But on Feb 5, 2018 the steamroller woke up with a vengeance, and shortly after the close, the infamous volmageddon event took place when a handful of the most popular inverse VIX strategies crashed from near record highs to zero in a manner of minutes as ETN liquidation triggers were activated, sending the VIX briefly to record highs and wiping out billions in value and leaving countless retail investors stunned and facing total losses. Read More

07.24.21- As The Fed's Powell Continues To Flail, Could An MMT Fed Chair Be Next?
Tho Bishop

Inflation in America continues to rise, and with it skepticism in Federal Reserve chairman Jay Powell’s insistence that increased prices are “transitory.”

This double whammy of consumer pain and declining institutional confidence increases the odds of another challenge to the Fed’s current plans: a change in leadership. Read More

07.23.21- Inflation Shock: Are You Ready To Start Paying “$40 Or $50” For A Hamburger?
Michael Snyder

After decades of living in a relatively low inflation environment, it is hard for most Americans to believe that things have gotten so bad so quickly.  In fact, even though I write about this stuff almost every day, it is hard for me to believe it.  We are watching prices spiral out of control all over the nation, and we know precisely who is to blame.  During the pandemic, our politicians in Washington have been borrowing and spending money at an unprecedented rate, and this has pushed our national debt up to 28 trillion dollars.  Meanwhile, the Federal Reserve has been pumping trillions of fresh dollars into our financial system, and this has resulted in the Fed balance sheet nearly doubling over the course of this pandemic. Read More

07.22.21- Powell Gave Congress Dovish Signs. Will It Help Gold?
Arkadiusz Sieron, PhD

Powell admits that inflation is well above the Fed’s target, but he still considers it transitory. Gold increased in response – only to fall again.

Last week, Powell testified before Congress. On the one hand, Powell admitted in a way that inflation had reached a level higher than expected and is above the level accepted by the Fed in the longer run:

Inflation has increased notably and will likely remain elevated in coming months before moderating. Read More

07.21.21- And Now, for Something Entirely Different: The American Descent into Madness
Victor Davis Hanson

Nations have often gone mad in a matter of months. The French abandoned their supposedly idealistic revolutionary project and turned it into a monstrous hell for a year between July 1793 and 1794. After the election of November 1860, in a matter of weeks, Americans went from thinking secession was taboo to visions of killing the greatest number of their fellow citizens on both sides of the Mason-Dixon line. Mao’s China went from a failed communist state to the ninth circle of Dante’s Inferno, when he unleashed the Cultural Revolution in 1966. Read More

07.20.21- The Federal Reserve And The Imbalances It Creates
Peter C. Schmidt

Any one who has ever flown on a small aircraft should be familiar with an aircraft's weight and balance limits.  I worked on St. Croix for a year, and flying to the island always required a short flight from San Juan, Puerto Rico.  The plane was very small - it sat only five passengers, one of whom sat next to the pilot!  There were times where the airline instructed people to leave their luggage behind with the promise that it would be delivered the next day.  Typically, there was no issue with the plane's capacity to carry the weight; instead it was the result of the luggage having to be placed in a location that would upset the plane's limits on 'balance.' Read More

07.19.21- This Bout of Inflation Won’t End Any Time Soon
Kris Sayce

Emma’s Note: Despite the Fed’s reassurances, the inflation we’re seeing in the Main Street economy right now is not “transitory.”

Investors are looking for ways to get out of cash and into other assets to protect their hard-earned wealth.

Real estate, stocks, and collectibles are all seeing an inflow of money right now.

But so far, gold, the traditional inflation-hedge, hasn’t taken off. Read More

07.17.21- The Fed's "Inflation Bubble"
Joe Carson

The Federal Reserve continues to argue that the US is experiencing an "inflation bubble." Even though the uptick in consumer prices has run hotter and longer than policymakers expected, the "inflation bubble" will deflate at some point. Policymakers offer no timeline for the moderation but continue to promote the view that inflation will drift back to the 2% mark, implying that the economy has a preset ceiling of inflation and nothing more.

The Fed's inflation story is paradoxical. It comes from an institution that has long argued inflation is a monetary phenomenon. The current policy stance is the most accommodative monetary stance in history, so expectations of more inflation, not a reversal, should be expected. Also, the Federal Reserve, which has long argued that it's impossible to identify an asset bubble beforehand, can now suddenly see an "inflation bubble" and also predict its end. Read More

07.16.21- Unbridled Stimulus: Could Money Be Worthless In Just Six Months
David Morgan

Prior to the Great War, the gold standard reigned supreme. The jury is still out on whether the dollar’s long run as the world’s leading reserve currency will last much longer. However, as we’ve discussed many times, our bet is that the US dollar will be the major casualty in an era of unbridled monetary and fiscal stimulus.

Watch this video on Could Money Be Worthless In Just Six Months, then please share with your friends and family on social media and use the caption: Could Money Be Worthless In Just Six Months. Read More

07.15.21- This Bout of Inflation Isn’t Ending Soon
Kris Sayce

The Federal Reserve may need to buy a new dictionary.

Or maybe the press and public should ask more questions when the Fed uses certain words.

Last month, you heard that the 5% inflation rate was “temporary” or “transitory.”

In other words, it wouldn’t last. Read More

07.14.21- This Is The Worst Inflation Since The 1970s, And The Stage Is Being Set For The Total Collapse Of The U.S. Economy
Michael Snyder

How does it feel to live in a country with double-digit inflation?  On Tuesday, the Bureau of Labor Statistics told us that the consumer price index has risen 5.4 percent over the past 12 months, and such a high number shocked a lot of people.  But in order to make a fair comparison to the past, we have to account for the fact that the way inflation is calculated has been changed literally dozens of times over the past several decades.  According to John Williams of shadowstats.com, if inflation was still calculated the way that it was back in 1990, the official rate of inflation over the past 12 months would be about 9 percentRead More

07.13.21- Transitory Inflation Turning Into An Inflationary Spiral
Peter Schiff

Consumer prices have been rising precipitously this year. If you annualize the Consumer Price Index through the first five months of 2021, you get a CPI increase of over 6%. Federal Reserve Chairman Jerome Powell continues to push the narrative that inflation is transitory, but not everybody buys into this storyline. On the Wolf Street Report, Financial Analyst Wolf Richter said Powell’s temporary inflation is turning into an “inflation spiral.”

Richter said some measure of inflation will likely tick down in the months ahead, but to steal Powell’s term, the relief will be transitory and only serve to offer false hope before inflation starts rising again. Read More

07.12.21- Government Debt Is Starting to Look Almost as Sketchy as Payday Loans
Malachy McDermott

If there is one thing every honest money-saving advisor would agree on, it's that a payday loan is a bad idea. Taking a high interest loan backed by nothing but your word to pay off your current account to fuel consumption with no capital investment is just leading you on the road to ruin.

However this simple message of living within one’s means does not seem to have reached the gilded ears of central banks and governments around the world. As inflation rises (who could have guessed the borrowing binge of 2021 would have resulted in higher inflation?), both the EU and American governments are now caught between a rock and … well, a rock. Read More

07.10.21- And Now, for Something Entirely Different: The New Space Age Starts This Sunday
Jeff Brown

Welcome to our weekly mailbag edition of The Bleeding Edge. All week, you submitted your questions about the biggest trends in technology.

Today, I’ll do my best to answer them.

If you have a question you’d like answered next week, be sure you submit it right here.

It’s going to be an exciting weekend. Read More

07.09.21- Can the Dollar Survive Both Cryptocurrencies and China?
Alexander Herborn and Gunther Schnabl

In his book Denationalisation of Money, F.A. Hayek argued that governments have never devoted their power to providing proper money over time. They “have refrained from grossly abusing it only when they were under such a discipline as the gold standard imposed.”1

The gold backing of the US dollar as the global reserve currency was lifted in the early 1970s, and paper currencies, so-called fiat currencies, have since become the norm. Following this decision, the paper currencies have dramatically lost value against gold (figure 1). Since the turn of the millennium, this process has substantially accelerated. Read More

07.08.21- And Now, for Something Entirely Different: What if the 2020 Election Audits Show Trump Really Won?
Andrew W. Coy

We just don't know.  We just don't know what comes next.  It is all a calculated guess.  The US Constitution is silent.  Even if, if, if, it is so very clear through professional forensic election audit results, that the presidential election of 2020 was stolen and President Trump actually won, there appears to be no obvious remedy stated in the US Constitution to right this wrong.  We just don't know. Read More

07.07.21- And Now, for Something Entirely Different: Michael Saylor on Why Bitcoin
is the Key to Abundance

Peter H. Diamandis

View Video

07.06.21- Fed Tricks Markets with Trillion-Dollar Clandestine Tightening and Keeps Government Vortex Whirling
David Haggith

While the Fed’s current tightening is not exactly a well-kept secret, stock and bond markets seem willing to ignore what the Fed’s left hand is taking away as the right hand is giving. Reverse repurchase agreements, which I have been tracking here, have exploded to a trillion dollars in money that the Fed is sucking out of the financial system.

According to John Mason at Seeking Alpha, total reverse repos on the Fed’s balance sheet actually just hit $1.26 trillion this past week: Read More

07.05.21- The Fed's Socialist Monetary Policies And What Comes Next
David Stockman

Socialist central planning has been elevated to a new art form based on control of the economy from the commanding heights of finance.

Central banks were once in the money business, in the sense of securing its availability, liquidity, and stable value. But the contemporary Fed never says a peep about the place where money arises and dwells — the financial markets — while gumming endlessly about the Main Street economy and the condition of and its targets for the components and constituents of GDP. Read More

07.03.21- Cornered Fed Weighs Dilemma: Market Crash or Runaway Inflation?
Birch Gold Group

The U.S. economy is at a fork in the road.

One route leads to the return of market fundamentals and sane stock valuations, at the cost of a historic market correction.

The other route leads to runaway hyperinflation that eats up the debt almost as fast as it devours the dollar’s buying power. That would likely cause the dollar to lose its hegemony as global reserve currency and bring about a simultaneous market collapse. Read More

 

07.02.21- The Bubble Epoch Gets Worse
Bill Bonner

Yes, it’s the age of miracles. The Bubble Epoch. The silly season

And it just gets sillier and sillier.

Christine Lagarde, who holds the top spot at the European Central Bank (ECB), announced that she’s going to continue pumping up the money supply by 17 billion euros per week.

She says it is going to add 1.8% to Europe’s growth over the next two years. That is, somehow the fake money will be magically transformed into real wealth. Read More

 

07.01.21- Fed’s Reverse Repos Spike to $1 Trillion. Cash Drain Undoes 8 Months of QE
Wolf Richter

Giant sucking sound of cash.

Back on June 9, when discussing the Fed’s gigantic cash-drain operation via overnight “reverse repos,” I mused in our illustrious comments: If the Fed at its June meeting doesn’t tweak its offering rate for overnight reverse repos and the interest rate on excess reserves (IOER), “my guess is that by June 30 (end of quarter), it” – the amount of overnight reverse repos – “could spike to $1 trillion.” The Fed then increased these two rates by 5 basis points. And today, that cash-drain operation shot up to nearly $1 trillion. Read More

 

06.30.21- Fed Chair Jerome Powell is Concerned Over the Rapid Rise in Retirements
Mike "Mish" Shedlock

Population-adjusted data shows a huge surge in retirements and that has the Fed concerned.

The lead chart is from the Role of Retirement by the Dallas Fed.

Role of Retirement

Since February 2020, the economy-wide employment-to-population ratio has declined by 3.2 percentage points, or by about 8.5 million workers. About 1.6 percentage points (4.1 million people) of the decline consists of unemployed workers who will likely eventually return to employment. Read More

06.29.21- The Free Market is Dead
Adam Parsons

Introduction

Unfettered markets have not been a reality in the past century. Or two centuries. Or even longer. We can go all the way back to the Panic of 1792 to see the US government helping out when things got really bad.

06.28.21- Act Now to Inflation-Proof Your Wealth
Tom Dyson

Last week, the Federal Reserve hinted it is becoming concerned with inflation.

This surprised many traders, who had been thinking the Fed wasn’t concerned at all about inflation. There were some dramatic moves in the currency, gold, and interest rate markets as a result.

What do I think? Read More

06.26.21-“IT’S A WAR” – The “Private” FED and Central Banks Are Already Running The US Government To Destroy The Economy!
John Titus commissioned by Catherine Austin Fitts

The FED, “the money changers”, is a mafia creating chaos to distract you while they rob you of everything and become your rulers!

Central bankers are privatizing everything to gain central control of capital and political power.  I think we now know from John Titus’ work who is writing Biden’s policies and executive orders – the Central Banks.  I think we know who is paying Fauci and his friends to create chaos while the central banks pick our pockets and remove our political power. They are creating the downturn so they can come in to privatize everything by buying it with free money that they print. Read More

06.25.21- Kyle Bass Slams Fed, Sees Inflation Everywhere He Looks
Tyler Durden

With US stocks back at all-time highs as the market seemingly shrugged off the FOMC's reaction to the latest inflation numbers, Hayman Capital's Kyle Bass returned to CNBC for an interview with the "Closing Bell" crew on Thursday, where he offered a dramatically different vision of the present economic scenario vis-a-vis inflation.

In an interview where he expounded upon his claim that the US is already grappling with real inflation rates above 10%, the billionaire investor proclaimed that "in every single aspect of life, I see inflation."  Read More

06.24.21- They Are Gaslighting Us! Nightmarish Inflation Is Already Here But The Fed Is Denying That It Even Exists
Michael Snyder

They would like us to believe that what we can see happening right in front of our eyes is not actually real.  Over the past year, our politicians in Washington have gone on the largest spending binge in U.S. history by a very wide margin, and the Federal Reserve has created the most enormous financial bubble of all time by pumping trillions upon trillions of fresh dollars into the financial markets.  Of course this was going to cause very painful inflation, and prices are rising very aggressively all around us. Read More

06.23.21- The Fed In A Box, Part 1: They Cannot Raise Interest Rates
Peter Schiff

Introduction

The US has over $28 Trillion dollars in debt and it continues to grow at an alarming rate. Even before COVID-19, the problem was becoming unwieldy. Ironically, despite adding $4T+ in debt over the last year, the pandemic may have given the US Government short-term reprieve as it gave the Federal Reserve a green light to drop rates back to zero. Read More

06.22.21- The Road to Authoritarianism is Paved with Fiat Currency
Ron Paul

Last week, the Federal Reserve announced it will maintain an interest rate target of zero to 0.25 percent for the rest of 2021. The Fed said it will also continue its monthly purchase of 120 billion dollars of Treasury and mortgage-backed securities.

Some Fed board members are forecasting a rate increase by late 2022 or 2023, though with the rate still not reaching one percent. The Fed will neither allow interest rates to rise to market levels nor reduce its purchase of Treasury securities. A significant increase in interest rates would make the government’s borrowing costs unsustainable.
 Read More

06.21.21- Powell Just Made A Huge Error: What The Market's Shocking Response Means For The Fed's Endgame
Tyler Durden

Back in December 2015, just days before the Fed hiked rates for the first time since the global financial crisis, in its first tightening campaign since June 2004, we said that Yellen was about to engage in a great policy error, one which like the Ghost of 1937, would end in disaster...

... and sure enough it did, when after 9 rate hikes, Powell realized that a rate of 2.50% is unsustainable for the US economy which first cracked during the summer of 2019 repo crisis when the Fed cut rates three times, only to cut rates to zero from 1.75% in a matter of days after covid conveniently emerged on the global scene and led to an overnight shutdown of the US economy and "forced" the Fed to nationalize the bond market as well as inject trillions of liquidity into the market. Read More

06.19.21- Modern Monetary Theory Always Works. Once.
Marin Katusa

Marin’s Note: We are going to do something different with today’s missive. Today we will allow long time reader and esteemed colleague of ours (who wishes to remain anonymous), Era “the Nature Boy of Finance” Flair, our platform to make his comments. They are well thought out and his angle is worthy of consideration. Read More

06.18.21- The Fed: A Century of Looking at Inflation Through the Wrong End of the Telescope
Peter Schmidt

Wilhelm Ropke said of economists, "They look at inflation through the wrong end of the telescope and deflation through a magnifying glass."  Proof of Ropke's observation can be found by reviewing what the Federal Reserve did in the 1920s and what it is doing now.  In both cases, the Fed - myopically focused on goods prices - convinced itself there was no 'inflation' even as its monetary policies fueled two enormous bubbles.

With America's entry into World War I, prices soared and continued to do so long after the Armistice.  However, in 1920, the US economy entered an enormous deflation and prices plunged well into 1921 as the economy purged itself of the considerable war induced excesses.  Not surprisingly, in the aftermath of prices soaring and then collapsing, economists began to consider stable prices as a sort of economic holy grail.  Read More

06.17.21- Even the Federal Reserve doesn’t believe the Federal Reserve anymore
Simon Black

More than twenty years ago when I was a young Army intelligence officer fresh out of the academy, my commander summoned me to his office one afternoon because he had a ‘special mission’ for me.

I was beyond excited.

My assumption was that it would be a clandestine assignment to lead one of our unit’s counterintelligence teams in the Middle East. Or perhaps it would be temporary duty as an aide to the commanding general who would be visiting soon. Read More

06.16.21- "The Idea That Inflation Is Transitory Is Nonsense": How One Hedge Fund Manager Plans To Profit From Fed Stupidity
Tyler Durden

Ahead of tomorrow's FOMC decision, and in general, two clear camps are emerging when it comes to the increasingly acrimonious debate whether the current soaring inflation is "transitory" or not. In one camp we have the establishmentarians: those with little vision, limited imagination, and whose job precludes them from conceiving of any outcome but that accepted by the groupthink led by the Fed. As noted earlier, this now includes the vast majority of Wall Street... Read More

06.15.21- Thomas Jefferson vs. the Federal Reserve
Michael Maharrey

The Federal Reserve is the engine that drives one of the biggest, most powerful governments in the history of the world.

Without the Fed, it would be difficult, if not impossible, for the government to fund its foreign wars, its massive, unsustainable social programs, the ever-growing police state, and the tangled web of corporate welfare programs. It’s almost certain none of this would exist as we know it today – not even close. The federal government would truly be limited. Read More

06.14.21- Answering The "$64 Trillion Question":
A New Theory Of Inflation

Michael Every, Elwin de Groot and Philip Marey

A structural inflation framework outlook

Summary

  • This special report looks at the ‘hot topic’ of ‘hot’ inflation, and asks if it is really back to stay 

  • Inflation is crucial for financial markets, but we lack an accurate economic theory of what causes it, leading to inaccurate modelling and policy/forecasting errors Read More

06.12.21- Fed’s Miniscule Asset Sales May Provoke Another “Taper Tantrum”
Birch Gold Group

The last time the Fed was noticeably hawkish was back in August 2018. Starting October 3 of that year, the market imploded (you might remember the Dow losing 5,000 points).

Now there could be a “second verse same as the first.” According to CNBC, the Fed appears to be preparing markets to taper its asset purchases. This process could start as soon as next week’s FOMC meeting. Read More

06.11.21- The Fed’s Sneaky Plot
Charles Hugh Smith

For the past 22 years, every time the stock market whimpered, wheezed or whined, the Federal Reserve rushed to soothe the spoiled crybaby. There are two consequential results of the Fed as savior:

1. The Fed has perfected moral hazard: everyone from the money manager betting billions to the punters gambling their stimmy money is absolutely confident I can’t lose because the Fed will always push the market higher. Read More

06.10.21- America’s Inflation Explained
Bill Bonner

YOUGHAL, IRELAND – “Pity the American small business owner… ” writes Dear Reader H.R.E.:

“I’m dealing with it as a landlord. Can’t get parts and materials and can’t get labor. Both cost more than ever. Plumbers at $300 per hour. AC guys closer to $500 per.”

Small Business Optimism Drops on Labor Shortage and Inflation Worries

The National Federation of Independent Business Optimism Index dropped two-tenths of a point to a reading of 99.6 in May. This followed three straight monthly increases but was the second straight month in which results undershot expectations. Read More

06.09.21- Janet Yellen’s at It Again
Brian Maher

Ms. Janet Yellen is talking again. From comments Sunday:

“If we ended up with a slightly higher interest rate environment it would actually be a plus for society’s point of view and the Fed’s point of view.”

A higher interest rate environment would likely arise from a higher inflation environment.

Inflation is presently on the jump. Read More

06.08.21- Oh Lordy, Yellen Comes Out for Higher Interest Rates: “A Plus for Society’s Point of View and the Fed’s Point of View”
Wolf Richter

“We want them to go back to” a normal interest rate environment.

Starting in 2018, President Trump harangued and hammered Fed Chair Jerome Powell to end Quantitative Tightening and to cut interest rates, and Powell buckled and did his infamous “180.” And now suddenly – unless this gets walked backed again tomorrow – we’ve got the opposite. Treasury Secretary Janet Yellen said in an interview with Bloomberg News on Sunday that higher interest rates would “actually be a plus for society’s point of view and the Fed’s point of view. Read More

06.07.21- Myths of the Mixed Economy
Lewellyn H. Rockwell, Jr.

The planned economy was all the rage in 1937, when Prentice-Hall published a 1,000-page tome on The Planned Society: Yesterday, Today, Tomorrow: A Symposium by Thirty-Five Economists, Sociologists, and Statesmen. The “question that confronts us today is not if we shall plan, but how we shall plan,” wrote Lewis Mumford in the Foreword. All the contributors—Keynesian, socialist, communist, and fascist—agreed with that point, including such luminaries as Sidney Hook, Benito Mussolini, and Joseph Stalin. Read More

06.05.21- The Feds’ Bubble Will Pop
Bill Bonner

I picked a hell of a day to quit drinkin’

– Russell Casse in Independence Day

YOUGHAL, IRELAND – Bubbles, bubbles, bubbles.

Today, we look at another institution that has been zombified by the feds – the stock market.

The stock market is supposed to allow investors to exchange shares in profit-making, wealth-increasing, goods-and-services-producing businesses. Read More

06.04.21- Another Day in the Fed's Casino: How the Reddit Rowdies and Meme Mob Jumped the Shark
David Stockman

Back in the day, farmers sometimes had to slam their mules between the eyes with a 2X4 to get their attention. Alas, that treatment is being administered to the Fed heads on practically a daily basis by the stock market gamblers, yet these stubborn inflation-deniers pay no attention at all.

In fact, they keep insisting there is no inflation problem, when a virulent monetary inflation thunders all around, and insist that no material financial asset bubbles are visible, when we are in the midst of the most unhinged speculative manias of all time. Read More

06.03.21- Biden and the Fed Are Creating an Inflation Crisis
Robert L. Luddy

The Federal Reserve Bank (the Fed) and the Biden administration are systematically undermining the stability of the American economy with a variety of unwise and destructive policies. The Fed and the administration defend these policies by denying obvious economic truths, which include their own inflation data.

Treasury Secretary Janet Yellen asserts that inflation is transitory and shortages are temporary. More than 300 American manufacturers have asked the Biden administration to end disruptive tariffs to ease shortages and reduce costs. Read More

06.02.21- Two Pins Threatening
Multiple Asset Bubbles

Michael Lebowitz

“Powell Says Fed Policies “Absolutely” Don’t Add To Inequality

- Bloomberg May 2020

The headline above is but one of countless times Fed Chairman Powell and his colleagues confidently said their policies do not result in wealth or income inequality. Their political stature and use of complex economic lingo give weight to their opinions in the media. Nevertheless, a deep examination of the Fed’s practices and their consequences leaves us to think otherwise. Read More

06.01.21- The Real Agenda
Behind the Feds’ Actions

Bill Bonner

This month, we look at a number of dots, all grouped… like a constellation far out in space… as “The Great Reset.”

The various planets and stars seem so “far out,” we have a hard time believing that it will ever really affect our lives.

...A switch to windmills rather than internal combustion engines… eating bugs rather than steaks…

…getting permission to travel, rather than traveling freely… compulsory anti-racist training… gender studies for six-year-olds…

…government spending nearing 50% of GDP… Modern Monetary Theory (MMT)… and double-digit real inflation. Read More

05.31.21- The Worst-Kept Secret in America:
High Inflation Is Back

Mark Hendrickson

To most people, “inflation” signifies widespread rising prices. Economists have long argued, as a matter of technical accuracy, that “inflation” denotes an increasing money supply. Frankly, though, most people don’t care what happens to the supply of money, but they care a lot about the prices they pay, so I’ll focus primarily on the numerous rapidly rising prices Americans are paying today. Following are several examples of the current inflation:

Corn, soybeans, and wheat have been trading at multi-year highs, with corn having risen from around $3.80 per bushel in January 2020 to approximately $6.75 now. Chicken wings are at all-time record highs. It is getting more expensive to eat. Read More

05.29.21- The FED Wakes Up, Goes "WOKE"
Joseph P. Farrell

This article is, in a way, almost too good to be true, and it’s symptomatic of what’s been going wrong for quite some time, ever since, let’s say, the founding of the Federal Reserve in the middle of the night during a pending Congressional shut-down with barely a quorum in sight.  It was perhaps the first “Pelosi Moment” in American history, when we “have to vote and pass it to find out what’s in it.” But this article, shared by N.S., is a real corker, not only for what it’s reporting,  but how it’s reporting it.

What am I getting at?

Well, brace yourself. It seems that America’s private central bank, the Federal Reserve, is “going woke”: Read More

05.28.21- An Obvious Solution to America’s Economic Problems
Bill Bonner

Here’s a joke without a punchline from the Stansberry Morning Market Preview:

Democrats called on President Joe Biden to replace former President Donald Trump’s Federal Reserve picks when their terms expire later this year, potentially reshaping the central bank.

The only plausible reason for replacing the Trump picks with Biden picks would be to make the Federal Reserve more responsive to the Democratic agenda – that is, even more ready to print money to cover the cost of programs we can’t afford. Read More

05.27.21- A Friend Asks "Is the Fed Trying to Destroy the US Dollar?"
Mike Mish Shedlock

Some may mock the question both ways (of course and no), but let's discuss reality including Fed comments and bond yields.

Purposeful Currency Debasement

The Powell Fed wants 2% inflation over time and has committed to let inflation run over 2% to make up for past undershoots.  Read More

05.26.21- Fed Balance Sheet Up $92 Billion In The Last Week! Other Central Banks Growing BS
Out of Control

Jason Burack

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05.25.21- Fed To Treasury Dealers & Congress: We Can't Count On You, We're Taking Charge
Charles Hugh Smith

The Fed sees itself as trapped by the incompetence and greed of the other players and by its own policy extremes that were little more than expedient "saves" of a system that is unraveling due to its fragility and brittleness. .

There are two standard-issue narratives about the Federal Reserve's agenda: the Fed's official narrative is that the Fed's mandate is to keep inflation under control while promoting full employment. The unofficial mandate that's obvious to all is to prop up assets, especially the stock market, which has become the Fed's preferred signifier of prosperity and the rightness/goodness of Fed policies. Read More

05.24.21- Happy Anniversary, Taper Tantrum
Nick Colas

Three Markets topics to discuss today:

Issue #1: What are US markets trying to tell us? It would be tempting to say “Nothing” … That we’re only 3 percent off the S&P 500’s record close of 4,233, set all of 8 trading days ago. That there’s plenty of good news to come. That Europe is just now reopening … All these are true, but they are also broadly known and therefore already in asset prices.

The way we see it, the real issue simply is that US equities are seemingly priced for perfection in a world that investors know will always be imperfect. Read More

05.22.21- Strong Dollar? Weak Dollar? Stable Dollar? – The Fed is Ruining the Dollar!
Dr Ron Paul

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05.21.21- As another Inflation Foreshock Rattles Markets Around the World, Fed not Fazed
David Haggith

Stock markets got a jolt of the wrong kind on Wednesday when release of Fed minutes showed a little more talk of the Federal Reserve tapering its stimuli took place than what Fed Chair Jerome Powell let on earlier in the month after the FOMC meeting, which sets monetary policy.

While the news was as insignificant as a nose hair, stock markets, bond markets, gold markets, and crypto currencies all shuddered at the thought that the Fed might have to start to think about whether it should start to think about tapering sometime in the unforeseen, indefinite future. Read More

05.20.21- Bitcoin Tumbles After Treasury Unveils Stricter Crypto Reporting To IRS
Tyler Durden

Just a month after Treasury Secretary Janet Yellen's complete fearmongering lie about Crypto being used largely for illicit finance (which has been overwhelmingly proven false,especially relative to dollars)...

The Treasury has just announced a new set of rules about reporting crypto transfers because, they claim...

Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion.Read More

05.19.21- Peter Schiff Warns Tucker Carlson:
The Coming Financial Crisis Will Be Worse Than The Pandemic

Schiff Gold

Consumer Price Index (CPI) data for April came in much hotter than expected.Year-on-year, inflation is up 4.2%. The big number even prompted Federal Reserve Vice Chairman Richard Clarida to say, “We were surprised by higher than expected inflation data.”

Peter Schiff appeared on Tucker Carlson’s show to talk about the consequences of more printed money chasing fewer goods. Peter said inflation is going to hit the middle class harder than the pandemic. Read More

05.18.21- And Now, for Something Entirely Different: It Was a Test, and We Failed
Jim Quinn

“The Truth, when you finally chase it down, is almost always far worse than your darkest visions and fears.” ~ Hunter S. Thompson

I think Hunter S. Thompson is being proven right by revelations becoming obvious daily. I’m a natural skeptic, so I rarely believe anything I’m told without verifying facts, analyzing data and understanding the motivation of those making declarations and assertions. For most of my life I thought I generally understood how the world worked. Read More

05.17.21- Fed Goal: Destroy 26% of Dollar's Buying Power in 15 Years
Brian McGlinchey

As Americans warily eye new data showing both consumer and producer price inflation heating up beyond expectations, few of them realize the Federal Reserve has an explicit goal to relentlessly degrade the purchasing power of their savings.

The Fed weakens the dollar—and pushes prices higher—by creating new money and pushing it out into the economy. If the Fed hits its stated target, the U.S. dollar will lose 10% of its buying power over the next 5 years, 26% over the next 15, and 40% over the next 25. As bad as that sounds, history suggests the dollar will fare even worse than the Fed intends it to.  Read More

05.15.21- And Now, for Something Entirely Different: Escaping a System
That Traps You in Bureaucracy

Joe Jarvis

The Trial, by Franz Kafka takes the reader on a trippy, Tim Burton style trek through the bureaucratic nightmare of court proceedings.

The accused protagonist K never even learns what he is accused of. Many of the lower judges and investigators have no idea either.

K even feels sympathy for some of these low level bureaucrats, who he accidentally gets in trouble by complaining about their corruption. When K witnesses the guards who first arrested him being punished, he says he doesn’t “even consider them guilty; it’s the organization that’s guilty, it’s the high officials who are guilty.” Read More

05.14.21- It’s Getting Serious: Dollar’s Purchasing Power Plunges Most since 2007.
But it’s a Lot Worse than it Appears

Wolf Richter

Fed officials, economists “surprised” by surge in CPI inflation, but we’ve seen it for months, including “scary-crazy” inflation in some corners.

The Consumer Price Index jumped 0.8% in April from March, after having jumped 0.6% in March from February – both the sharpest month-to-month jumps since 2009 – and after having jumped 0.4% in February, according to the Bureau of Labor Statistics today. For the three months combined, CPI has jumped by 1.7%, or by 7.0% “annualized.” Read More

05.13.21- Home Prices Soar Most On Record As Fed Continues Bubble Blowing Policies
Tyler Durden

The Federal Reserve continued to increase its holdings of mortgage-backed securities by the tune of $40 billion per month, fueling a housing bubble with record-low mortgage rates and low inventory. 

Even as the housing sector has more than recovered from the downturn, Chair Jerome Powell continues pedal to the metal with MBS purchases. According to the National Association of Realtors (NAR), this has resulted in the median price for a single-family home to soar the most on record in the first quarter. Read More

05.12.21- The End of the Present Dark Age
Hugo Salinas Price

The Central Banks of the World – Russia and China both perhaps excepted – are all members of an International Club of Central Banks. This Club is run according to the rules dictated by the BIS, the Bank for International Settlements, located in Basel, Switzerland.

Events that took place years’ ago, resulted in the conversion of all currencies administered by the Banks under the sway of the BIS, into fiat currencies; that is to say, currencies which have no support or connection with the precious metals, silver or gold. Read More

05.11.21- The Coming IRS Reign Of Terror
James Bovard

(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)

The power to tax has long conferred the power to destroy political opponents. But in the glorious era of President Joe Biden, all previous cases of government abuse of power are being expunged, at least by the media and Biden supporters. That is why it is supposedly safe to vastly increase the power of perhaps the most feared federal agency, the Internal Revenue Service. Read More

05.10.21- The Fed Embraces Its Inner Zimbabwean
Doug French

May is on its way, and the old investment saw, “Sell in May and go away,” will be tested once again. Jared Blikre, writing for Yahoo Finance, provides the history behind what may or may not be good advice. “The full axiom was originally, ‘Sell in May and go away, and come on back on St. Leger’s Day,’” he explains. “It has its roots in the City of London. Financial professionals would go on holiday in May for approximately four months to escape the summer heat and return for the St. Leger derby in mid-September.” Read More

05.08.21- After Massive Government Intervention, Here’s How It Ends
Bill Bonner

Yesterday, we saw that some investments inevitably go bad.

People make mistakes. The private world of win-win deals routinely corrects them. Death, divorce, default, destitution – many are the ways it sets things right.

But the public world… the world backed by tanks and armed police… the world of wars and sanctions… regulations and money-printing… uses its considerable might to resist correction. Read More

05.07.21- And Now, for Something Entirely Different: Virologists Report Poor Man’s Amino Acid Cure For Covid-19 Would Abolish
Need For Vaccines

Bill Sardi

Move over hydroxychloroquine and ivermectin, two widely extolled prescription medicines used to treat COVID-19 viral infections.  A natural cure for COVID-19 that is widely available and affordable for even the poorest of people on the planet has been confirmed by a team of virologists who have spent a lifetime studying the underlying causes of viral infections. Read More

05.06.21- How Will the Fed Deal With This Latest Bout of Inflation
Graham Summers

Yesterday I pointed out how inflation has become deeply embedded in our financial system.

As a quick recap, inflation arrives in stages. It’s not as though it appears overnight and suddenly the cost of everything rises.

Instead, inflation slowly works its way into the financial system in price hikes in the following prices. Read More

 

05.05.21- The Feds’ Daring Investments
Bill Bonner

Last week, Charles de Vaulx, a famous value investor, was apparently so depressed by the bad performance of his fund that he jumped from the 10th floor of his office building.

The New York Post:

Shortly before 1 p.m. Monday, Charles de Vaulx entered the posh Midtown tower at 717 Fifth Ave. that had long housed the offices of International Value Advisers [IVA], an investment firm founded 14 years ago, according to police. Read More

05.04.21- Gold is Laughing at Powell
Matthew Piepenburg

Recently, my colleague, Egon von Greyerz, and I had some unabashed yet blunt fun calling out the staggering levels of open hypocrisy and policy desperation unleashed by former Fed Chairman, Alan Greenspan.

Poor Alan was an easy target of what I described as the “patient zero” of the reckless interest rate suppression and unbridled monetary expansion policies of the Fed which have always led to equally reckless boom and bust cycles in markets and economies. Read More

05.03.21- MMT: medieval monetary theory
Peter Krauth

Modern Monetary Theory or MMT, as it's better known, is a recurring theme that's not likely to go away.  However, there's nothing modern about it, it's not about money (it's about currency), and it's no longer a theory.

We've certainly not heard much about it in mainstream economics or investment publications.  But I do think it's gaining traction.  

In my view, MMT is a very big deal because of its massive implications to our economic future.  And so, I think it's worthwhile having at least a basic understanding of the concept.  Read More

05.01.21- Would the Last Market Bull With the Last Dollar Please Turn Off the Music?
Birch Gold Group

Reality always wins in the end.

It doesn’t matter if you’re excited about the economy or its outlook. Unless some economic scam is being perpetuated (unlikely), fundamentals always play a factor, and guide the U.S. economy through peaks and valleys.

Fundamentals like supply, demand, inflation, deflation, and so on. At some point, even the mainstream media “hype circus” won’t be able to manufacture enough consent to maintain any stock market illusions that things are “just peachy.” Reality always cuts through the noise, and we could be approaching that point right now.  Read More

04.30.21- The Feds Fueled Income Inequality
Bill Bonner

Finally, The Washington Postcatches on…

The Fed helped fuel a stock market boom that benefited wealthy Americans – and left behind everyone else

Ever since the Covid-19 pandemic struck, the Federal Reserve has gotten plenty of kudos for moves that have helped stabilize the economy, kept house prices from tanking and supported the stock market. But those successes have obscured another effect: the inadvertent impact the Fed’s ultralow interest rates and bond-buying sprees are having on economic inequality.  Read More

04.29.21- Fed Heads Lose Their Head
Egon von Greyerz

“Read my lips: No New Taxes” Bush Sr said in his acceptance speech for his nomination in 1988 when he promised no tax rises. As most politicians, he didn’t keep his word. In the 1992 campaign Clinton made a devastating attack on Bush’s pledge and the rest is history.

The simple rule is: Don’t listen to WHAT people say, but HOW they say it. Already 50 years ago the Mehrabian model concluded that words only convey 7% of a message, body language accounts for 55% and tone of voice delivers 38%. That is why you should never focus on the words of a speaker since the're the least important. Read More

04.28.21- Financial and Banking Cover-ups
www.wanttoknow.info

"The Federal Reserve is neither truly federal, nor a full reserve. It is not owned or directly controlled by the United States government. The fact that the words 'United States Federal Reserve System' are printed on every U.S. bank note thus raises serious questions."

How much do you know about the banking system and who issues the money you carry in your pocket? Considering the vital role money plays both in our individual lives and in the world, our educational system teaches us amazingly little about how money is created, how banks operate, and what causes the huge banking scandals and bankruptcies that have occurred.  Read More

04.27.21- Make No Mistake: Programmable Digital Currencies Are Weaponizable Money
Peter C. Earle

Earlier this year, China began to roll out a project that had long been in the works––a digital version of its currency, the yuan, is now being used in four Chinese cities. The Chinese government sees two major potential benefits to the experiment: a tangible challenge to the U.S. dollar’s global ubiquity, and a way to control how Chinese citizens spend their money.  Read More

04.26.21- And Now, for Something Entirely Different: Absolute Interference
Mike Lindell

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04.24.21- Weekend Rant: Peak National Dysfunction
James Howard Kunstler

No need to argue anymore about defunding the police. The police across America have been successfully disarmed and castrated. Why would any cop with a sense of self-preservation interfere in the commission of a crime now?

By the way: rape reports are up 322 percent in New York City over the past year, shootings were up 97 percent and murders up 44 percent. But don’t worry, Benjamin Crump and his legion of super-hero personal injury lawyers stand ready to enforce the suspension of law, seeking multi-million-dollar payouts in civil suits, such as the $27-million recently settled on the family of George Floyd, which is $27-million more than Jesus of Nazareth got for somewhat harsher treatment years back, though, according to House Speaker Nancy Pelosi, George Floyd has by far outpaced the old lord-and-savior in sheer saintliness mojo. Looks like George and Jesus will soon be vying for Speaker of Kingdom Come in the new, revised cosmos of American Wokery. Read More

04.23.21- Bond Market Troubles Will Take Away The Fed’s Printing Press
Adam Taggart

And it will happen this year, predicts money manager Bill Fleckenstein

Those cheering today’s sky-high asset prices say they don’t worry because “the Fed has the market’s back”

And they haven’t been wrong to-date. There’s no doubt that the Fed’s $trillions in monetary stimulus has pushed the prices of stocks, bonds, real estate and nearly every other asset class to all-time highs. Read More

04.22.21- US Money Supply:
More Lies from On High

Matthew Piepenburg

Upton Sinclair famously observed that, “it is difficult to get a man to understand something, when his salary depends on his not understanding it.”

After decades navigating among Wall Street sell-siders or reading the pablum that passes for financial journalism in the retail space, I discovered it was always an open secret in the big banks that if you wanted to move up the ladder, don’t rock the boat.

In short: Keep the message bullish, as bears get fired and bulls stay hired.

Such Realpolitik is nothing new; employees, be they working for the New York Times, the Federal Reserve or Goldman Sachs, have a vested interest in staying employed. Read More

04.21.21- America’s “Helicopter Parent”
Charles Hugh Smith

The decay of America’s middle class has been well documented and many commentators have explored the causes.

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%.  Read More

04.20.21- Bernie Madoff Could Have Been Fed Chair Or Treasury Secretary
Peter Schiff

When Federal Reserve Chairman Jerome Powell appeared on 60 Minutes recently, he was asked what it takes to become the head of the central bank. In a clip from podcast episode 679, Peter Schiff said that when you think about the actual qualification, Bernie Madoff would have made the perfect Fed chairman. Or perhaps the secretary of the US Treasury department.

So, what does qualify one to head up the Federal Reserve? Peter said that apparently, being clueless about economics helps. Read More

04.19.21- Uh Oh: Consumer Price Inflation
Heating Up Fast

Peter Reagan

Back in September 2020, we reported on Fed Chairman Jerome Powell's inability to see a "hidden" inflation offset in energy that camouflaged the rise in overall inflation.

That "hidden" inflation offset has now vanished, and overall inflation appears to be heating up quickly. Anyone can see it.

Robert Wenzel wrote that price inflation is coming in hot, and in his second update he put a spotlight on gas prices:  Read More

04.17.21- Jerome Powell Admits Federal Budget “Unsustainable” But Assumes We Can Fix It Later
Michael Maharrey

Through the first six months of fiscal 2021, the US government ran a record $1.7 trillion budget deficit. Federal Reserve Chairman Jerome Powell said this is sustainable – for now.

During a webinar sponsored by the Economic Club of Washington DC, Powell said the economy can handle the current debt load. But he did warn that the long-term trajectory of the US budget is unsustainable.  Read More

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

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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

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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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