We’ve seen a sharp selloff in both gold and silver. Gold was down over $40 an ounce Friday. Meanwhile, the US dollar saw a sharp increase, along with a rise in long-term Treasury yields. The catalyst for these sharp moves was a better-than-expected jobs report and expectation that it will spark a quick pivot to monetary tightening by the Fed.
The markets are moving on fantasy, not economic reality.
Gold was solidly above $1,800 an ounce this week until Fed Vice Chair Richard Clarida mentioned the economy reaching the Fed’s goals earlier than expected and raised the specter of monetary policy tightening. But is the economy really improving as much as everybody seems to think? In this week’s Friday Gold Wrap, host Mike Maharrey digs into some of the economic numbers and determines they’re faking it.
Consumer price index data came in hotter than expected. Again. The producer price index data also came in well above projections. But Fed Chair Jerome Powell continues to stick to his “inflation is transitory” story. On this episode of the Friday Gold Wrap, host Mike Maharry digs into the inflation data and highlights Powell’s comments on Capitol Hill. He concludes the story is really all they’ve got.
The markets widely interpreted the June Federal Reserve meeting as hawkish. The central bankers pushed their projections for the first interest rate hike from 2024 back into 2023. But in reality, the Fed didn’t actually do anything. Interest rates will remain at zero and quantitative easing will continue unchanged into the foreseeable future.
The fact is the US government needs the Fed to continue its loose monetary policy to sustain its out-of-control borrowing and spending. Money is control and that’s why every government wants to control the money. Of course, this never works well for the average person. As Ron Paul put it, the road to big government authoritarianism is paved with fiat currency.
The Federal Reserve wrapped up its June meeting. While the central bank didn’t raise rates, the messaging coming out of the FOMC was widely viewed as hawkish. But was it really?
We don’t think so. In fact, the Fed’s messaging was extremely dovish. And the fact that it continues to ignore inflation doesn’t bode well for the future.
The CPI data came in higher than expected again in May. Looking at the trend, this should cast some serious doubt on the notion that inflation is “transitory.” Price data has come out hotter than expected every month this year. But the market reaction appears to be the exact opposite. The worse than expected CPI report seems to have reinforced the “inflation is transitory” narrative. Everybody seems to be buying into a lie the Fed is spoon-feeding us.
We got the May Consumer Price (CPI) Index data last week. Once again, it came in hotter than expected. In this article, we break down the data and show that this surge of inflation is anything by transitory.
In the first place, it’s important to remember that the CPI is reverse-engineered to mask inflation. It doesn’t really tell the whole story. But even half the story is pretty bad.
Average Americans are worried about inflation, but the mainstream financial media doesn’t think they should be. Even though inflation is a hot topic, the conversation seems to primarily center around the notion that inflation is overblown. In this article, we explain why this mainstream media spin downplaying inflation is dead wrong.
Last week, Russia announced plans to completely eliminate dollars and dollar-denominated assets from its sovereign wealth fund. Is this another sign of erosion of dollar dominance?
The news from Russia dovetails with a warning by billionaire fund manager Stanley Druckenmiller that the dollar could cease to be the world’s reserve currency within the next 15 years.
With some positive economic data coming out this week, investors suddenly went bullish on the economy again and decided that the Fed is surely going to deal with inflation now. Will it though? In this Friday Gold Wrap Podcast episode, host Mike Maharrey speculates about the Fed’s next move. He also looks ahead and talks about the long-term future of the dollar. Can we assume it will always be the reserve currency?