When the Dodd-Frank law was adopted with its vast increase in bank regulatory authority, the “too big to fail” problem was made permanent. In the name of never bailing out the banks again, new regulations have been imposed and some other financial services (like hedge funds and insurance companies) have been swept into the same
It is becoming even more clear that Establishment economists are now equating the rate of inflation to prosperity. Across the board, they are clamoring for the Fed to take action that will result at least 2 percent inflation.
Charles Plosser and Richard Fisher, presidents of the Philadelphia and Dallas Feds, respectively, announced plans to retire, leaving the Fed in the hands of inflation doves who seemingly have no fear of inflation.
The foundation is being laid for massive worldwide inflation. Expansive money creation programs in the world’s major economies have been under way for years, now the Eurozone is about the rejoin the game.
China is the latest to join the money printing binge, this time printing the equivalent of $81 billion. The goal: to fillip an economy that grew in August at “only a 6.9 percent” annualized rate. If the US economy were growing at 6.9 percent, the Dow would be at 25,000. The world’s central bankers are
Fears of financial crises aside, the primary reason for owning gold is as a hedge against inflation, inflation being defined as an increase in the money supply. As more money is printed, the dollar loses value and prices rise. A excellent example of this principle is the menu at an iconic restaurant in Phoenix, Durant’s.
In July 2012, Mario Draghi, president of the European Central Bank, steadied European money markets simply by saying, “. . . the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” Apparently, simply promising to do whatever it takes was enough because the ECB had
Precious metals are now three years into what I believe is a correction in a very long bull market that has still further to go. Yet suffering through such dismal price action after ten years of rising prices is trying, despite predictions of higher prices. I have one client who regularly emails me with questions
Reports abound that Tuesday’s (Sept. 2) drop in the price of gold was due to a ceasefire between Ukraine and separatist forces, or whatever you wish to call them. Russian proxies–even Russian soldiers–would be more accurate. It is unlikely that any resolution to the Ukrainian conflict will please the West. Vladimir Putin holds all the
The Congressional Budget Office (CBO) recently changed its projection for fiscal year ending September 30 to show a deficit of $506 billion. Despite the national debt now being north of $17.6 TRILLION and having doubled since Obama took office, statist economists, columnists and apologists immediately praised the $506 billion number. The LA Times; “. .