Contact us
CALL US NOW 1-888-GOLD-160

Fed Up Friday: Rate Hike Likely, But Fed Still Recession-Deniers

  by    0   0

Across the world this week, many different political strains were generating economic challenges. Venezuela is producing a cautionary tale about hyperinflation, while Italy began expressing its own populist movement. Meanwhile, the Fed has begun nervously testing the waters of the future Trump administration.

Venezuela Issuing 20,000 Bolivar Notes to Combat Worthless Currency

Venezuela’s Runaway Inflation is continuing to force policy makers to come up alternatives. One of the alternatives is the issuing of six new bills, which includes a new 20,000 bolivar. The super note will be worth 200 times more than the cash-heavy country’s current highest denomination.

Venezuela’s inflation is expected to triple in 2017. Currently, 4,400 bolivars will get you one US dollar.  There seems to be no end in sight for the free-fall currency, which is creating shortages in food and medicine.

Fed Up Friday

Trump Economic Advisor wants Fed to Get out of Economic Driver’s Seat

Judy Shelton, co-director of the Sound Money Project and Trump economic advisor wants the Fed to take a back seat to the economy, according to an interview with CNBC. Shelton said she thinks effective growth will come from increased productivity and tax reform, rather than the Fed’s failed monetary policies.

Markets seem to be buying into the game plan with asset prices continuing to climb, but there’s little thought being given to the effects of Trump’s planned fiscal stimulus, which would increase the deficit during an increase in interest rates. Still, Shelton doesn’t believe that the expected small rate hike next week will derail the rally.

5 Things to Watch for at the Fed’s December Meeting Next Week

As the December Fed meeting looms next week, the unanimous consensus is that we will have a new, higher rate at the end of it. But why the hike now? The main reasons could be the recent uptick in the markets, as well as investors’ positive outlook for Trump’s policies. Bloomberg columnist and chief economic advisor at Allianz SE Mohamed A. El-Erian created a useful article of the five key things to look for at the meeting.

Fed’s Recession Denial Making Them Nervous about Trump

The Fed may have backed the economy into the corner, but they still don’t see it. In a recent Fortune article, one Fed official stated “The economy is not in recession today,” despite mounting evidence to the contrary. The Fed is in denial of America’s addiction to easy credit and the bubbles their policies have created.  

Peter Schiff put it best: “The problems haven’t been solved, and they can’t be solved unless we’re willing to bite the bullet and allow a painful economic restructuring that is going to be necessary for to pave the way for real economic growth.”

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Arizona Governor Signs Bill to Repeal State Capital Gains Taxes on Gold and Silver

Good news for precious metals investors in Arizona. On Monday, Gov. Doug Ducey signed a bill into law that eliminates states capital gains taxes on gold and silver specie. It tax repeal will not only benefit Arizonans who invest in gold and silver, it will also facilitate their use as currency and undermine the Federal […]


Moody’s Drops China’s Credit Rating as Debt Piles Up

The US government isn’t the only one piling up debt. We’ve reported on the ticking debt bomb in the US. Apparently, the timer is ticking in China as well. This week, Moody’s downgraded the country’s credit rating from A1 to Aa3, and changed its outlook from stable to negative. It was the first downgrade of […]


Jim Rickards: Don’t Watch the Circus in D.C., the Real News Is Gold

Over the last few weeks, the media has fixated on whether or not firing FBI director James Comey and allegations of Russian collusion will turn into Donald Trump’s Watergate. But in a recent column, economic analyst Jim Rickards said that really isn’t the most significant thing that‘s happened. While everyone is focused on the Washington […]


Trump, Watergate and Gold

Could Trump be facing his own Watergate? The president’s firing of FBI director James Comey in the midst of probes into the administration’s possible connections with Russia set off a political firestorm. There has even been talk of impeachment in recent weeks. While at this point, much of the rhetoric spinning around the Beltway is […]


Everything’s Better in Gold! Even Toilets

Everything is better when it’s dipped in gold! So, how about a $1 million gold toilet? The rapper Birdman has one. He posted a photo of it on Instagram. And that’s just one of the crazy things coated in gold recently highlighted on CNBC’s “The Filthy Rich Guide.” Related


Comments are closed.