Buy the Most Gold and Silver for Every Dollar You Spend ~ Precious Metals News. Why the #FederalReserve Always 'Happens' to Be Wrong. Why the Federal Reserve Always 'Happens' to Be Wrong. "The last duty of a central banker is to tell the public the truth.
" - Alan Blinder, former Federal Reserve Board Vice Chairman The Federal Reserve Board finds itself back in a quandary of its own making. When Fed chair Janet Yellen pushed through an interest rate hike this past December, she confidently cited an "economy performing well and expected to continue to do so. " The Fed set the stage for more rate hikes in 2016. But something went awry along the way - namely, the Fed's upbeat forecast. Official pronouncements of optimism don't square with the economic realities now unfolding.
Most of these warning signs were flashing back when the Fed decided to hike. The Fed's next move could be to cut rather than raise rates - perhaps even pushing them into negative territory as central banks in Europe and Japan have done. The Fed Has a Remarkable Track Record of Failed Forecasts Federal Reserve policymakers can be counted on to react to market developments, because that's all they can do. Preparing to #Barter and Trade Is NOT a Loony Idea. Preparing to Barter and Trade Is NOT a Loony Idea. By: Clint Siegner Let’s start with this fact; fiat (paper) currencies die – often spectacularly.
That is why precious metals may someday be needed for barter and trade. Anyone who thinks it is silly to worry about such a thing is putting blind faith in Federal Reserve Notes. The U.S. dollar is having a great run, no question. It will soon be 50 years since Nixon closed the gold window, thereby converting the dollar to a purely fiat currency. Humans carry a normalcy bias. If you test that assumption, it quickly gets hard to defend. Point to the exponential growth in U.S. debt, the unrestrained government spending throughout both Republican and Democratic administrations, and the extraordinary monetary policies of the Fed (particularly in the past decade) and reasonable people should acknowledge that the reign of “king dollar” is unlikely to last forever.
Most people don’t know the first thing about the dark history of fiat currencies around the world. America is no exception. “Two ways. #Gold and #Silver Spot Prices Increasingly Detached from Reality. Gold and Silver Spot Prices Increasingly Detached from Reality. Commodities / Gold and Silver 2015Jul 08, 2015 - 02:46 PM GMT By: MoneyMetals Clint Siegner writes: An insolvent Greece has defaulted.
On June 30th, officials missed repayment of billions in lMF loans and declared a banking holiday. Predictably, many Greek citizens responded to the crisis and bought gold coins. So did a lot of people here in the U.S. and around the world. The regular disconnect between the futures markets, where spot prices are set, and the physical markets reveals a growing problem.
The availability of metals in a retail form is one cause. The exchanges are supposed to be a meeting place for rational buyers and sellers evaluating fundamentals and making decisions about what is a fair price. These powerful market players aren’t trading physical metal, and they care very little about the fundamentals that motivate the rest of us. Wall Street invented high frequency trading a few years back. These options significantly influence on the underlying spot price.