Friday, April 20th, 2018 MST

Category: Federal Reserve

The dollar will be destroyed

In my post No reflation?, I discussed the perma-bulls’ continued recommendation of “buying the dips.”  In support of their position, TV talking heads speak of an “improved economy and higher corporate earnings” as reasons to continue buying stocks. However, if I’m reading David Stockman’s reports correctly, what the perma-bulls are really counting on is “reflation”

Germany repatriates its gold, at least some of it

Last week Germany’s central bank pompously announced that it had completed its repatriation of $31 billion in gold from Paris and New York, ridiculing earlier speculation that the gold had somehow been compromised.  A widely circulated theory was that Germany’s gold had been borrowed by bullion houses and delivered against futures contracts that were sold

A Fed rate hike in the works?

New York Fed President William Dudley said that he supports another rate hike this year if the economy “evolves as he expects.”  He also thinks it’s reasonable for the Fed to start selling part of its $4.5 trillion portfolio, which it accumulated through several quantitative easing programs.