interest rates
In this week's Off The Cuff podcast, Chris and Axel Merk discuss:
- No Rate Hike After All?
- Yellen sings a dovish tune this week
- Wait, Wasn't The Fed Just Warning It Would Tighten?
- Yep. It was talking tough up until now
- Why Can't The Fed Make Up It's Mind?
- Because it's in a box. Jawboning is all it can do at this point
- The Next Fed Head
- A complete transformation may be in store soon
Chris and Axel unpack the latest guidance from the Fed issued this week. For those listening, the Fed's inconsistency is understandably infuriating. One week it's warning about tightening ahead, the next it's telling folks rates are just fine where they are.
Axel, who has more inside access to current & past Fed officials than anyone we know, feels that the Fed is simply trying to walk a tightrope it knows will one day snap. At this point, it's trapped. It needs to normalize rates, but doing so will crash the markets. So it's using the only tool it has — confusion — to keep the system fooled that everything is under control. Of course, one day the ruse will be discovered. But until then, the Fed will obfuscate, vacillate, prevaricate — whatever it can do to keep the status quo in place for one more day…
Off The Cuff: The Schizophrenic Fed
PREVIEW by Chris MartensonIn this week's Off The Cuff podcast, Chris and Axel Merk discuss:
- No Rate Hike After All?
- Yellen sings a dovish tune this week
- Wait, Wasn't The Fed Just Warning It Would Tighten?
- Yep. It was talking tough up until now
- Why Can't The Fed Make Up It's Mind?
- Because it's in a box. Jawboning is all it can do at this point
- The Next Fed Head
- A complete transformation may be in store soon
Chris and Axel unpack the latest guidance from the Fed issued this week. For those listening, the Fed's inconsistency is understandably infuriating. One week it's warning about tightening ahead, the next it's telling folks rates are just fine where they are.
Axel, who has more inside access to current & past Fed officials than anyone we know, feels that the Fed is simply trying to walk a tightrope it knows will one day snap. At this point, it's trapped. It needs to normalize rates, but doing so will crash the markets. So it's using the only tool it has — confusion — to keep the system fooled that everything is under control. Of course, one day the ruse will be discovered. But until then, the Fed will obfuscate, vacillate, prevaricate — whatever it can do to keep the status quo in place for one more day…
In this week's Off The Cuff podcast, Chris and John Rubino discuss:
- Unpacking Today's Rate Hike
- What will the impact be?
- When Is A Rate Hike Not A Rate Hike?
- The Fed's hikes aren't really pulling liquidity out of the market
- Every time The Fed Talks Gold Goes Down
- Manipulation (for optics) is alive & well
- Can The Fed Engineer A Soft Exit?
- Hardly likely
Chris and John break down today's Fed announcement of a 0.25% rate hike, plus its presented schedule for starting to reduce it's $4.2 trillion balance sheet.
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
Off The Cuff: What Today’s Rate Hike Means
PREVIEW by Chris MartensonIn this week's Off The Cuff podcast, Chris and John Rubino discuss:
- Unpacking Today's Rate Hike
- What will the impact be?
- When Is A Rate Hike Not A Rate Hike?
- The Fed's hikes aren't really pulling liquidity out of the market
- Every time The Fed Talks Gold Goes Down
- Manipulation (for optics) is alive & well
- Can The Fed Engineer A Soft Exit?
- Hardly likely
Chris and John break down today's Fed announcement of a 0.25% rate hike, plus its presented schedule for starting to reduce it's $4.2 trillion balance sheet.
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
In this week's Off The Cuff podcast, Chris and Mike "Mish" Shedlock discuss:
- Fake, Fictitious Markets
- None of today's prices is justified by the underlying data
- Death By Drowning
- Too much liquidity is killing our markets
- Housing Bubble Trouble?
- Prices now declining in the San Francisco Bay Area
- Buy The @%&^ Dip!
- What will happen when this universal strategy no longer works?
After last week's brief re-emergence of volatility in the financial markets, the world's various sovereign plunge protection teams have been hard at work flooding liquidity into the system to push prices back up. Losses will not be tolerated!
And so the "Buy the dip!" crowd is victorious once again. This strategy, mindless as it is, has worked extremely well over the past 6 years — due to an ever-present influx of 'thin air' $billions supplied by the central banks. But for many reasons, that mindless approach can't — and won't — continue forever. And likely not for much longer.
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
Off The Cuff: Buy The @%&^ Dip!
PREVIEW by Chris MartensonIn this week's Off The Cuff podcast, Chris and Mike "Mish" Shedlock discuss:
- Fake, Fictitious Markets
- None of today's prices is justified by the underlying data
- Death By Drowning
- Too much liquidity is killing our markets
- Housing Bubble Trouble?
- Prices now declining in the San Francisco Bay Area
- Buy The @%&^ Dip!
- What will happen when this universal strategy no longer works?
After last week's brief re-emergence of volatility in the financial markets, the world's various sovereign plunge protection teams have been hard at work flooding liquidity into the system to push prices back up. Losses will not be tolerated!
And so the "Buy the dip!" crowd is victorious once again. This strategy, mindless as it is, has worked extremely well over the past 6 years — due to an ever-present influx of 'thin air' $billions supplied by the central banks. But for many reasons, that mindless approach can't — and won't — continue forever. And likely not for much longer.
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
Danielle DiMartino Booth, former analyst at the Federal Reserve Bank of Dallas, has just released the book Fed Up: An Insider's Take On Why The Federal Reserve Is Bad For America.
In it, Danielle describes how the Federal Reserve is controlled by 1,000 PhD economists and run by an unelected West Coast radical with no direct business experience. The Fed continues to enable Congress to grow our nation’s ballooning debt and avoid making hard choices, despite the high psychological and monetary costs. And our addiction to the "heroin" of low interest rates is pushing our economy towards yet another collapse.
This reckless monetary policy pursued by the Fed has resulted in the rich elite becoming markedly richer, while savers and retirees are being absolutely gutted. All while risking a coming conflagration in the bond markets that will destroy a painful percentage of the world's financial wealth:
Danielle DiMartino Booth: An Insider Exposes The Evils Of The Fed
by Chris MartensonDanielle DiMartino Booth, former analyst at the Federal Reserve Bank of Dallas, has just released the book Fed Up: An Insider's Take On Why The Federal Reserve Is Bad For America.
In it, Danielle describes how the Federal Reserve is controlled by 1,000 PhD economists and run by an unelected West Coast radical with no direct business experience. The Fed continues to enable Congress to grow our nation’s ballooning debt and avoid making hard choices, despite the high psychological and monetary costs. And our addiction to the "heroin" of low interest rates is pushing our economy towards yet another collapse.
This reckless monetary policy pursued by the Fed has resulted in the rich elite becoming markedly richer, while savers and retirees are being absolutely gutted. All while risking a coming conflagration in the bond markets that will destroy a painful percentage of the world's financial wealth:
Every year, friend-of-the-site David Collum writes a detailed "Year in Review" synopsis full of keen perspective and plenty of wit. This year's is no exception. As with past years, he has graciously selected PeakProsperity.com as the site where it will be published in full. It's quite longer than our usual posts, but worth the time to read in full.
2016 Year In Review
by David CollumEvery year, friend-of-the-site David Collum writes a detailed "Year in Review" synopsis full of keen perspective and plenty of wit. This year's is no exception. As with past years, he has graciously selected PeakProsperity.com as the site where it will be published in full. It's quite longer than our usual posts, but worth the time to read in full.
In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:
- A Bottom For Miners?
- Mish thinks this may be a good purchasing window
- Hit To Housing
- Rising interest rates are kryptonite to home prices
- Vanishing Jobs
- Trump can't replace the jobs lost to automation
- The Year Of The Iconoclast
- Anti-establishment platforms gather steam around the world
After years and years of declining/0% interest rates, the trend may be reversing. Market interest rates have risen faster over the past month than in decades.
Chris and Mish see this as having implications that will ripple through all asset classes. As Mish warns:
I’m watching interest rates just rise and rise. And the thing here is everyone’s betting on this massive inflationary scenario under Trump. I’m not sure I get it. Now, long term, we can all look at this and say, “Yeah, he’s going to take less money in in taxes, he’s going to waste more on infrastructure, he wants to increase military spending.” Of those, the only one I agree with is lowering taxes but the analysis is negative, negative, negative from Congressional CBO and all the people who figure this stuff out.
So we’ve got this surge in interest rates and money pouring into the dollar. The dollar’s going higher. I look at all of this and I think, “Hmm, a surge in interest rates. Ah, it’s likely to affect an ugly market.” The rising US dollar impacts exports in a negative fashion. The stock market is incredibly overvalued. And we know what generally happens when interest rates rise: I’m looking at a potential deflationary bust. Especially when we factor in Trump’s trade policies that might very well cause a global trade war.
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
Off The Cuff: Repercussions Of Rising Rates
PREVIEW by Chris MartensonIn this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:
- A Bottom For Miners?
- Mish thinks this may be a good purchasing window
- Hit To Housing
- Rising interest rates are kryptonite to home prices
- Vanishing Jobs
- Trump can't replace the jobs lost to automation
- The Year Of The Iconoclast
- Anti-establishment platforms gather steam around the world
After years and years of declining/0% interest rates, the trend may be reversing. Market interest rates have risen faster over the past month than in decades.
Chris and Mish see this as having implications that will ripple through all asset classes. As Mish warns:
I’m watching interest rates just rise and rise. And the thing here is everyone’s betting on this massive inflationary scenario under Trump. I’m not sure I get it. Now, long term, we can all look at this and say, “Yeah, he’s going to take less money in in taxes, he’s going to waste more on infrastructure, he wants to increase military spending.” Of those, the only one I agree with is lowering taxes but the analysis is negative, negative, negative from Congressional CBO and all the people who figure this stuff out.
So we’ve got this surge in interest rates and money pouring into the dollar. The dollar’s going higher. I look at all of this and I think, “Hmm, a surge in interest rates. Ah, it’s likely to affect an ugly market.” The rising US dollar impacts exports in a negative fashion. The stock market is incredibly overvalued. And we know what generally happens when interest rates rise: I’m looking at a potential deflationary bust. Especially when we factor in Trump’s trade policies that might very well cause a global trade war.
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
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