Federal Reserve

The ISM has once again expanded.  Policy is working, so please Dear Mr. Bernanke, begin to withdraw not only a token amount of Treasury bond asset buying in October; make a real statement for the ‘organic’ economy.  Pull all T bond purchases and stop buying some MBS to boot.  You’ll not only help the Fed’s … Continue reading

Last week the Fed treated us to a whipsaw as market perceptions apparently were not in line with the FOMC policy statement, which was basically a punt.  Then the very next day the Fed’s James Bullard  jawboned the media about a possible October Federal Reserve tapering.  Hence, a letter writer was left with images of … Continue reading

In the current policy and media stoked market environment, anything is possible.  It’s  the wonderful, magical world of hands-on policy making.  5 years after the financial crisis, but still not enjoying a ramping economy like the good old (and long gone) days of the last great secular bull market (RIP 2000)?  Just sit back, relax … Continue reading

The editor of the GloomBoomDoom report and interview guest of our show, Marc Faber discusses the Fed’s non-taper in this 8 min interview with Bloomberg….  

The following is excerpted from a commentary originally posted at www.speculative-investor.com on 8th September 2013.

In light of today’s positive economic data out of China, I thought I would reproduce a segment from NFTRH 255 (9.8.13) that speculated upon the possibility of a new up cycle in inflation expectations based in large part on China and its credit growth cycle (on which central planners have announced a planned clampdown).  China … Continue reading

The destruction culminating in late June in the gold price brought out the usual suspects to school us ever since about why gold is all done as a worthy investment in an era of economic revival, compliments of heroic policy making by Ben Bernanke and Associates.  Perceptions are now fully cemented toward policy maker control … Continue reading

We have used the ‘continuum’ (monthly chart of the 30 year yield) for years now to define tops in inflation expectations (red arrows at or around the EMA 100) and tops in deflationary fears (green arrows). 30 yr yield & 30 yr – 2 yr spread With the help of a MACD cross over (not … Continue reading

China has been notably relaxed about her own people acquiring gold, and the government itself appears to be absorbing all of China’s mine output. Russia is also building her official reserves from her own mine supply.

It’s not correct to think of today’s currencies as being ‘backed’ by the international reserve assets held by the central bank or government.