Tag Archive: Janet Yellen

A Fatal Flaw in the System

2016-04-11

The Hard Rocks of Real Life BALTIMORE – The Dow dropped 174 points on Thursday, the biggest fall in six weeks. Not the end of the world. Maybe not even the end of this year’s bounce-back bull run. As you’ll recall, stocks sold off at the beginning ...

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Gold – The Best Defense Strategy

2016-04-08

by Claudio Grass

2016-04-08

The War on Cash is on! If you are used to making visits to your bank to make your credit card payments, you may find this no longer an option in the future. Some banks are no longer accepting (or limiting their acceptance) of cash deposits. The war...

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Why Janet Yellen Can Never Normalize Interest Rates

Bill Bonner explains why the Fed will normalize interest rates. With higher rates, Yellen risks corporate profits and bond defaults. With higher rates, Yellen risks not only bond defaults, but also bank defaults.

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The Gold – Money Supply Correlation Report

2016-04-04

by Keith Weiner

2016-04-04

A Spot of Irrational Exuberance There were some fireworks last week. Gold went up on Tuesday (it was a shortened week due to Easter Monday), from a low of $1,215 to $1,244 over the day, a move of over 2 percent. Silver moved from $15.02 to $15.44, ...

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The Gold Money Supply Correlation Report, 3 Apr, 2016

2016-04-04

by Keith Weiner

2016-04-04

There were some fireworks this week. Gold went up on Tuesday (it was a shortened week due to Easter Monday), from a low of $1,215 to $1,244 over the day, a move of over 2 percent. Silver moved from $15.02 to $15.44, almost 3 percent. What happened on...

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Federal Devolution

2016-04-01

by Bill Bonner

2016-04-01

Leaning Into the Wind BALTIMORE – During our lifetime, three Fed chiefs have faced a similar challenge. Each occupied the chairman’s seat at a time when “normalization” of interest rates was in order. Recently, we remembered William McChesney Mar...

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Swiss Politicians Slam Attempts To Eliminate Cash, Compare Paper Money To A Gun Defending Freedom

2016-02-19

by Tyler Durden

2016-02-19

As we predicted over a year ago, in a world in which QE has failed, and in which the ice-cold grip of NIRP has to be global in order to achieve its intended purpose of forcing savers around the world to spend the taxed product of their labor, one thi...

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Janet Yellen Fights the Tide of Falling Interest

The Fed is going to have to take back this interest rate hike (Dec 16). The process that sets the interest rate is complex. I have written many words on its terminal decline. However, there are two simple reasons why the trend remains downward.

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Janet Yellen Lit the Fuse Report 20 Dec, 2015

2015-12-21

by Keith Weiner

2015-12-21

The prices of the metals were sagging. Silver was trading around $13.80. On Wednesday, Janet “Good News” Yellen said the magic words. The Federal Reserve hiked the federal funds rate by 25 basis points. The price of silver was surging in anticipation...

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Falling Yields, Rising Asset Prices -Rising Yields,Falling Prices

Our paper currency causes falling productivity, though not in terms of bushels per acre. What falls is productivity per dollar or euro of savings. This is the real meaning of the falling interest rate. When the rate was 10 percent, $1,000 of principal produced $100 of return. When it falls to two percent, then the same capital generates a return of only $20. Now with the Swiss 10-year bond, CHF 1,000 earns only CHF 1.3. Keith Weiner argues that one...

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A Gold Man In Monetarist Territory

Keith Weiner suggests that one should abstract from economic variables like CPI, U6 unemployment measure, M0 or GDP. We know that the Fed manipulates key variables of the economy; hence we live in a world of central planners, a socialist world, not much better than the period of Mao or Stalin. The gold standard is free of central bank manipulation.

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The Gold Standard For Democrats

Keith Weiner describes how the Fed pushes down the interest rate and due to that, it drives up prices of food and rents. This implies that businesses are clearly priviliged against workers. The gold standard does the opposite, if prefers savings and workers. Hence Democrats should be fan of the gold standard.

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Why Can’t The Fed Spot Bubbles?

The topic of whether the Federal Reserve can see bubbles in advance, and what they can do about them, is hotly debated. The price of an earning asset depends directly on the interest rate. This is because of time preference. It is better to have your cash today than tomorrow. The Fed’s problem is that the calculation depends on a rate of interest that it heavily influences. Its analysis is therefore circular and self-fulfilling. It’s like taking a...

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Fed FOMC: Who is Hawk, Who is Dove? 2015 Update

fomc voters 2014 dove / hawk scale, dove centrist hawk

Composition of the Fed's Federal Open Market Committee (FOMC composition), needed to know if the Fed is opting for quantitative easing or not.

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Why Did Ron Paul Say Gold Could Go To Infinity?

Fundamentals,FX,Gold and CHF:Week November 11 to November 15

2013-11-16

by George Dorgan

2013-11-16

FX Price Movements November 11 to November 15 2013

Fundamentals with highest importance: In Janet Yellen’s hearing at the Senate Banking Commission, the future Fed chair emphasized the need to provide support to the economic recovery and to overcome low inflation. Her speech supported equities, gold and US Treasuries. GDP in the Euro zone rose by 0.1% QoQ in line with expectations, but less …

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Fast CHF and Gold Price Movements

2013-11-01

by George Dorgan

2013-11-01

Our CHF and Gold News Bar on our home page explains daily CHF and gold price movements based on the most important fundamental indicators in a few sentences. Keep in mind that the only Swiss fundamental data that is able to move the CHF must come from the SNB and from Swiss inflation data – … Continue reading »

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Janet Yellen’s Fed Has The Makings Of A Potential Disaster

In 2013, President Obama nominated Janet Yellen to be the next Federal Reserve Chairman. We need to know what she stands for if we want to predict what the central bank will do to us next. Clearly, Yellen will continue Bernanke’s Quantitative Easing, but her papers and speeches show that she is quite different from her predecessor.

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Brad DeLong on Jackson Hole and Quantitative Easing

2012-08-22

by George Dorgan

2012-08-22

Berkeley Professor Brad DeLong has delivered a nice allegorical entry in his type pad on a quick Quantitative Easing. Letting speak old greek mythological figures he hides his personal opinion. A half now completely written platonic dialogue on what the Federal Reserve is Doing — or not Doing — Right Now DeLong explains the …

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