We’ve seen new records in the stock market in recent weeks. The headlines tell us it’s all because of a potential trade deal, but Friday Gold Wrap host Mike Maharrey doesn’t buy it. He says it’s really all about Fed money printing. That may juice the stock market, but there’s a downside – inflation. In this episode of the podcast, Mike talks about it along with the week’s gold news.
Where’s the inflation?
The Federal Reserve printed money for nearly a decade, and yet, inflation – as measured by the government – has been “muted.”
Do we even need the Federal Reserve?
Whether on the political left, right, or in the middle, virtually everybody thinks we do. After all, without the Fed, we’ll have wild economic swings and crashes.
Economist Edward Stringham disagrees. In this It’s Your Dime Interview, he talks about it with host Mike Maharrey and makes the case that the economy would function just fine without a central bank pulling strings. In fact, as he explains, the Fed actually stirs up economic chaos.
Did you now skyscrapers can predict economic crashes?
And the skyscraper index is flashing red.
As economist Mark Thronton explained in his book, The Skyscraper Curse: And How Austrian Economists Predicted Every Major Economic Crisis of the Last Century, the so-called Skyscraper Index has a remarkably accurate record signaling economic downturns dating back to the late 19th century.
Stock markets hit new highs again this week. If you believe the headlines, the bullishness on Wall Street is mostly a function of trade deal optimism. But there’s another factor driving stocks higher – easy money courtesy of Federal Reserve (not) quantitative easing. In this episode of the Friday Gold Wrap, host Mike Maharrey talks about the impact QE4 is having on the markets and some delicious irony courtesy of a paper published by the central bank that admits its own policy might just be a problem.
America’s economy is built on consumption. Average Americans have been pushing the US economy along, spending money they don’t have. But as we’ve reported, there are signals that the credit cards might be close to maxed out. Now there appears to be another warning sign – the wealthy are reining in their spending.
It’s been a pretty dreary week on Wall Street with another round of trade war pessimism. Otherwise, there hasn’t been a lot of economic news to roil markets and precious metals have remained pretty much rangebound. But host Mike Maharrey has a silver lining for you on this episode of the Friday Gold Wrap podcast, along with a little Fed analysis.
Jerome Powell lectured Congress about the national debt last week, calling it unsustainable. The Federal Reserve chairman is concerned. He admitted that with interest rates already close to zero, the central bank has very little room to cut rates in the event of an economic downturn. Peter Schiff appeared on the Claman Countdown, along with Milken Institute economist Bill Lee to talk about Powell’s comments.
Peter said that while Powell is lecturing Congress, it’s really the Fed’s fault.
There was more optimism about a trade deal this week. There was also more pessimism about a trade deal this week. Markets reacted accordingly. But there was some other interesting news out there. Jerome Powell lectured Congress about the national debt and last month’s inflation data came in hotter than expected. Host Mike Maharrey covers these stories and more, and basically ignores the trade war gossip, on this episode of the SchiffGold Friday Gold Wrap podcast.
Consumer debt set another record in September, but the pace of borrowing appears to be slowing. This could signal trouble for an economy built on American consumers spending money they don’t have.
Total consumer debt grew by $9.5 billion in September, according to the most recent data released by the Federal Reserve. That represents an annualized increase of 2.8% and pushed total consumer indebtedness to a new record of $4.15 trillion (seasonally adjusted).