In an epic meeting of economic intellects, Peter Schiff and Roy Sebag talk about Goldmoney’s recent acquisition of SchiffGold and the coming revolution in value transactions. Peter and Roy also discuss the special properties of gold that make it the best standard for backing currency, Goldmoney’s potential to change the way we buy, sell and save, and how crypto currencies and the internet are making banking systems irrelevant.
In light of the Fed rate hike news finally dropping this week, we can start looking ahead to the rest of the year. It’s a great time to be Fed Up with the election looming and global central banks making moves to preserve their economic health into next year.
Fed Holds Interest Rates “For the Time Being'”
In her press conference Wednesday afternoon, Janet Yellen said the Fed decided to keep rates at their current target but pushed that a hike before the end of the year was likely. The delay suggests Yellen and policy makers are continuing to keep up the illusion of economic health by maintaining an undercurrent of optimism despite the bad data continuing to come in.
“The case for an increase in the federal funds rate has strengthened,” she said, citing a need to “wait for further evidence of continued progress” in the economy. Despite the renewed optimism express by Yellen, most economists are still skeptical of a November hike, given that it’s just before the election.
Many investors wonder whether they can use their retirement funds for buying physical precious metals. It’s important for those who want to diversify their portfolios and reap the wealth-retention benefits of gold and silver. The answer depends mostly on what type of retirement fund you have.
India has traditionally been one of the largest gold markets on the planet, second only to China. However, the high price of the yellow metal is threatening India’s status as a leading importer of gold. Indian gold bazaars are the common places of exchange, and lately, their owners have seen a mass movement of people selling their gold jewelry. The market has transformed from whole sellers and brokers to everyday individuals looking to take advantage of the high price of gold, up 22% this year so far.
A Florida court recently found Robert Escobio and his companies, Southern Trust Metals and Loreley Overseas Corp guilty by the U.S. Commodity Futures Trading Commission (CFTC) of bilking customers in a precious metals scam. Escobio was accused of stealing $600,000 from 35 customers from July 2011 through May 2013. Over the time period, the defendant and his companies received more than $2.6 million from the plaintiffs, according to South Florida Business Journal.
Escobio, Southern Trust, and Loreley were banned from commodity trading and ordered to pay more than $2.1 million in penalties.
If this week’s any indication, it seems as if the Fed is a divided house. Former dovish members are now suggesting tightening while others want to stay the course of QE and low interest rates. What’s more, the Fed itself is likely to become a political football if Donald Trump has his way. The Republican presidential nominee took aim at Fed Chair Janet Yellen this week, saying she was a puppet for Obama. All of this and more in this week’s Fed Up Friday.
Peter Schiff appeared on the Next News Network to give some insights into the possible US war in South China, Hillary Clinton’s recent health problems, international trade, ObamaCare, and quantitative easing.
The drama at the Fed continues to unfold after another high-ranking official, Governor Lael Brainard, expressed comments suggesting the US economy was still too vulnerable for a rate hike. At this point, the governing body seems divided about the health of the economy, which seems odd given their self-proclaimed “data dependency”. Either the data is indicating a growing economy or a shrinking one. Lack of consensus suggests a division in leadership and a delay in any rate hike at least until the end of the year.
Janet Yellen and company are still claiming to make so-called “data dependent” decisions, yet new bad economic data is calling into question their true motives. In his latest podcast, Peter Schiff explains why the Fed is bluffing when it comes to raising interest rates. He also dispels myths about the benefits of a rate hike to the financial markets and why you should avoid them.
Last Friday the stock market tanked following another monetary policy maker’s statements about interest rates. It seems investors are, yet again, willing to believe the Fed intends to raise interest rates despite the reality of a bad economy. Policy makers continue to keep the idea of rate hikes alive despite the knowledge they are powerless to do anything.
In a speech Friday morning, Boston Fed President Eric Rosengren suggested the time for a rate hike was getting closer and delaying could dampen economic gains: “A reasonable case can be made for continuing to pursue a gradual normalization of monetary policy,” he stated. “Failure to continue on the path of gradual removal of accommodation could shorten, rather than lengthen, the duration of this recovery.”