Wednesday, June 19, 2019

Tag: Inflation

Trump Allies Urge Fed to Cut Balance Sheet and Revive Credit

Bond investors may have another reason to worry after Donald Trump's election last week: Some of his allies are not fans of the Federal Reserve’s big balance sheet of bonds and want the central bank to shrink it. They argue that the Fed's debt portfolio has damaged the economy by...

Global Trumpism: Why Trump’s Victory Was 30 Years in the Making and Why It...

Trump's victory was predictable, and was predicted, but not by looking at polls. Polling has taken a beating recently having failed to predict the victory of David Cameron's Conservative Party in the British general elections, then Brexit, and now the election of Donald Trump. One can argue about what’s...

Bonds bloodied as Trump spending plans spur dollar

Routs in global bonds and emerging markets intensified, while the dollar climbed with base metals as investors positioned for the wave of fiscal stimulus that Donald Trump has pledged to unleash. The yield on 30-year Treasuries rose to the highest since January, with last week’s record debt selloff bleeding into...

James Rickards: The Petro Dollar Is Dead, Dollar Devaluation, Pensions Lost, World Currency

James Rickards is the Editor of Strategic Intelligence, a financial newsletter, and Director of The James Rickards Project, an inquiry into the complex dynamics of geopolitics + global capital. He is the author of The New Case for Gold (April 2016), and two New York Times best sellers, The...

David Stockman: America Now Lives Under A Perverted Regime

The rise of Trump—and Bernie Sanders too—vastly transcends ordinary politics. In fact, it reaches deep into a ruined national economy that has morphed into rank casino capitalism under the misguided policies and faithless rule of the Washington and Wall Street elites. This epic deformation has delivered historically unprecedented set-backs to...

A Weaker Currency Is No Longer Economic Elixir It Once Was

A weaker currency, once the cure-all for ailing economies around the world, isn’t the panacea it once was. Just look at Japan, where the yen plunged 28 percent in the two years through 2014, yet net exports to America still fell by 10 percent. Or at the U.K., where the...

The Coming Bond Bubble Collapse

In this week’s podcast, Michael Pento, fund manager and author of The Coming Bond Bubble Collapse, explains how the United States is fast approaching the end stage of the biggest asset bubble in history. He describes how the bursting of this bubble will cause a massive interest rate shock that...

Fed’s Eric Rosengren Sees Reasonable Case for Gradual Rate Increases

Federal Reserve Bank of Boston president finds U.S. economy resilient despite drag from overseas. Federal Reserve Bank of Boston President Eric Rosengren said Friday that “a reasonable case can be made” for tightening interest rates to avoid overheating the economy. Holding rates at their current low level for much longer risks...

Iran’s central bank won’t bite off more than it can chew

TEHRAN, Iran — Most economists and monetary policymakers in Iran have been supportive of getting rid of the country’s dual foreign exchange rate system by as soon as March 20, 2017, when the current Iranian fiscal year comes to an end. However, there appears to be a gulf between...

The Federal Reserve is living in a fantasyland

The Fed has failed. Indeed, only the world-historical disaster engineered by the nincompoops at the European Central Bank has made America's central bank — the Federal Reserve — look remotely good lately. For eight straight years, under Republican and Democratic leadership, the Fed has behaved like nothing has changed since the...

The Federal Reserve’s moral imperative

The Federal Reserve is usually understood as the bankers' bank. But what if it was the people's bank? At the Fed's annual Jackson Hole conference last week, an assortment of community organizers, activists, labor organizations, and economists showed up to push America's most important financial institution towards putting the concerns...

The Fed has yet to take monetary reform seriously

LARRY SUMMERS is right; this year's Fed symposium in Jackson Hole was triply disappointing. In the weeks before the gathering, members of the Federal Open Market Committee (FOMC) publicly discussed their worries that the current monetary framework might leave the Fed unable to deal adequately with future slowdowns. They...

Years of Fed Missteps Fueled Disillusion With the Economy and Washington

Once-revered central bank failed to foresee the crisis and has struggled in its aftermath, fostering the rise of populism and distrust of institutions. In the past decade Federal Reserve officials have been flummoxed by a housing bubble that cratered the financial system, a long stretch of slow growth they failed...

Fed knows policy doesn’t work anymore but it won’t admit it: Strategist

The policies of global central banks received another bashing Thursday with a London-based investment strategist launching a stinging analysis of the U.S. Federal Reserve. Minutes released late Wednesday from the Fed's latest policy meeting showed some voting Federal Reserve policymakers expected a further U.S. interest rate increase will be required...

Putin: Nyet to Neo-liberals, Da to National Development

After more than two years of worsening economic growth and an economy struggling with 10.5% central bank interest rates that make new credit to spur growth virtually impossible, Russian President Vladimir Putin has finally broken an internal factional standoff. On July 25 he mandated that an economic group called...

Venezuela’s Inflation Is Set to Top 1,600% Next Year

Food shortages, weak oil prices and economic mismanagement has forced the government to declare a state of emergency. While most advanced economies struggle to lift inflation, none would want Venezuela‘s situation: Consumer-price inflation is forecast to hit 480% this year and top 1,640% in 2017, according to the International Monetary Fund. A shortage of medical...

Quantitative easing useful when all else fails, says Fed official Loretta Mester

A top official from the US Federal Reserve says quantitative easing has "proven useful", but the likely path of US monetary policy is still for interest rate rises. Talk of further unconventional monetary policies globally has increased as Japan reaches the limit of what negative interest rates and quantitative easing...

Bank of England Signals August Stimulus as Rate Kept at 0.5%

The Bank of England left its key interest rate at a record low and signaled it’s readying stimulus for August as the economy reels from Britain’s decision to quit the European Union. The nine-member Monetary Policy Committee, led by Governor Mark Carney, voted 8-1 to keep the benchmark at 0.5...

Alan Greenspan wants the US to go back on the gold standard

"Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset. The abandonment of the gold standard made it possible for the welfare statists to use the...

Why Gold Is Now In A New Bull Market

Investors’ interest in gold peaked in September 2011, when it was generally agreed upon that the endless rounds of quantitative easing policies by the world’s central banks will result in rising inflationary pressures, while concerns over a potential Euro Zone break-up ran rampant, as government finances in countries such...
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Alan Greenspan on Brexit, U.S. Economy, and Inflation

Former Federal Reserve Chairman Alan Greenspan discusses fallout the U.K.'s Brexit referendum, U.S. economic growth, wage and economic stagnation, central banks, low productivity, and his call for inflation in the U.S. economy. He speaks with Bloomberg's Michael McKee and Tom Keene on Bloomberg. U.K. policy makers miscalculated and made a...

U.S. Import Prices Rise at Fastest Pace Since 2012

May’s 1.4% jump indicates rising oil prices are contributing to firming domestic inflation. WASHINGTON—Prices for imported goods rose in May at their fastest pace in over four years, a sign that rising oil prices and the fading strength of the dollar are contributing to firming domestic inflation. May saw the third...

German Bunds Reach New Milestone as Yield Declines Below Zero

The yield on Germany's 10-year government bund, Europe's benchmark security, fell below zero for the first time on record, as investors’ seemingly insatiable demand for haven assets created another bond-market milestone. The nation joined Japan and Switzerland in having 10-year bond yields of less than zero. The plunge in yields,...
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An Overview of the Economic Outlook and Monetary Policy of the United States

Description Lael Brainard, a member of the Board of Governors of the Federal Reserve, discusses the current economic outlook of the United States and the monetary policies of the U.S. Federal Reserve. Brainard reflects on the challenges the U.S. economy faces with a potential interest rate rise on the horizon....

The Desperate Plight of Petro-States

With a Busted Business Model, Oil Economies Head for the Unknown. Pity the poor petro-states. Once so wealthy from oil sales that they could finance wars, mega-projects, and domestic social peace simultaneously, some of them are now beset by internal strife or are on the brink of collapse as oil...

China Quietly Prepares Golden Alternative to Dollar System

China, as current chair of the G-20 group of nations, called on France to organize a very special conference in Paris. The fact such a conference would even take place in an OECD country is a sign of how weakened the hegemony of the US-dominated Dollar System has become. On...

Now Is Not a Normal Time: Central Banks Buying Piles of Gold

These are not normal economic times. Interest rates have remained artificially low, plunging into negative territory in many places. Central banks continue to inflate the money supply with quantitative easing. Some policy-makers have even floated the idea of helicopter money. Worldwide money printing is reportedly approaching $100 trillion. There is no...

Fed to delay rate hike until September on tame inflation outlook: Reuters poll

The U.S. Federal Reserve will likely wait until September before raising interest rates again, stretching to nine months the time since its first hike in nearly a decade, as it waits for clear signs inflation is picking up, a Reuters poll found. This is the second time this year that...

Venezuela Doesn’t Have Enough Money to Pay for Its Money

Venezuela's epic shortages are nothing new at this point. No diapers or car parts or aspirin -- it’s all been well documented. But now the country is at risk of running out of money itself. In a tale that highlights the chaos of unbridled inflation, Venezuela is scrambling to print...

Venezuela Starts Power Rationing, Oil Production Likely to Fall

Venezuela - home to the largest oil reserves in the world - will for the next 40 days experience a four-hour blackout every single day, and there are fears that the rationing could lead to unrest and trigger a decline in oil output at a time when the country...

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