So, the US curling team won Olympic gold!
I have to admit, I’ve always kind of liked curling. It’s a cerebral sport – kind of like chess played on a big sheet of ice. And then there’s the fact that it looks like the kind of sport any of us could play on a Friday night while drinking beers.
The new Fed chairman has swooped into Washington D.C. like a hawk this week.
In his first testimony before Congress, Powell talked up the economy. He’s also indicated he plans to continue pushing interest rates higher. In fact, many analysts are now talking about four rate hikes in 2018, with the first on tap for this month. Powell said his personal outlook for the economy has strengthened since December, and he sees little risk for a recession.
In his latest podcast, Peter Schiff said Powell couldn’t be more wrong.
The federal debt keeps climbing upward and there is no indication that this has raised even a slight concern in Washington D.C.
We’ve been focusing a lot on the federal debt in recent weeks. We’ve explained that debt is a cancer on economic growth. We’ve raised the question: who is going to buy all of the Treasuries the government will have to sell to finance all of the debt. And we’ve talked about the impact of rising bond yields on the US budget as the cost of servicing the massive debt rises.
There’s a lot of bearish economic news when you factor the federal debt into the equation. But the spiraling debt might actually be bearish for gold. In fact, over the last two decades, there is a positive correlation between increased federal debt and the price of gold.
Jerome Powell came out pretty hawkish in his public debut yesterday. The new Federal Reserve chairman said he sees little risk of recession and reaffirmed plans to continue tightening the money supply through interest rate increases and quantitative tightening.
My personal outlook for the economy has strengthened since December. I don’t see [the recession risks] as at all high at the moment.”
But there are signals that Powell’s optimism is unwarranted and that the monetary blanket knitted together with nearly a decade of easy money may be about to unravel. In fact, the deceleration in the growth of the money supply orchestrated by the Fed matches the trend just prior to the 2008 crash.
Mises Institute academic vice president, and Pace University professor of economics Joseph Salerno explains in an article originally published on the Mises Wire.
Total household debt has climbed to a record $13 trillion. One factor driving overall American indebtedness higher is the ever-increasing burden of student loans, and a policy change being mulled by the Trump administration could cause that student loan bubble to pop.
Student loan debt stands at a staggering $1.4 trillion, owed by some 44.2 million borrowers. The average class of 2016 graduate has $37,172 in student loan debt. That represents a 6% increase from the previous year.
In our Fun on Friday post last week, we teased a special on Royal Canadian Mint Wildlife of the Canadian Arctic coins. Since Punxsutawney Phil saw his shadow predicting six more weeks of winter, we might as well embrace the winter theme.
And today’s the day!
Starting this morning we’re offering beautiful quarter-ounce fractional coins featuring the Canadian arctic fox, polar bear, and snow falcon at extremely low premiums.
Earlier this month, we reported that American household debt increased to a record $13 trillion in the last quarter of 2017. If you spread that out evenly, every man woman and child in America would owe about $40,000. Add to that their portion of the US government debt – $63,000 – and every American, on average, is carrying a six-figure debt load. As U.S. Global Investors CEO Frank Holmes put it, the level of debt in America is a “head-spinning sum.”
It’s easy to look at these numbers and say, “Yeah, yeah, there is a lot of debt out there. But does it really matter? We’ve been talking about debt for years now and it hasn’t really made a difference.”
But the truth is, all of this debt is a ticking time bomb. The question is will the Fed let it blow?
We’ve been enjoying a big party and it’s about to come to an abrupt end.
Russia has passed China to become the world’s fifth-largest gold-holding country.
According to a Bloomberg report, the Bank of Russia added nearly 20 tons of gold to its stash in January, raising its total to 1,857 tons. The People’ Bank of China reported holdings of 1,843 tons.
Russia has bought gold every month since March 2015 in an effort to diversify its foreign currency holdings and minimize its dependence on the US dollar.