Has the Federal Reserve Lost Control of Interest Rates?
One of the keys to the mainstream’s faith in the financial system is the belief that the Federal Reserve is actually capable of managing interest rates. The Fed eases policy to lower interest rates and tightens policy to raise interest rates. But what happens if the Fed loses control of interest rates? What happens if the Fed’s purchases and...
If Economic Growth Is Really Strong, Why Is the Gold Price Rising?
Last Friday saw a stronger than expected headline GDP figure, with economic growth coming in at an annualized rate of 3.2%. That was well above estimates but, as with any other rosy economic data, pulling back the curtain to get a closer look at what’s behind it demonstrates that not all is well with the economy. What many analysts found...
Massive Unfunded Liabilities Will Continue to Weigh on Taxpayers
How much money does the US government owe? If you answered $22 trillion, you’re right… but only partially so. The national debt is hovering at around $22 trillion, a staggering figure of itself, and one that exceeds the nation’s entire economic output. But that’s not the full amount the government will have to pay in the future. A recent report...
Why High-Flying Stock Markets Aren’t Benefiting Retirees
Stock market bulls in the financial media love to tout high stock prices as proof that the economy is doing well and that good times will continue indefinitely. But while high stock prices (and the amazing volatility of the past year) have benefited many traders on Wall Street, they haven’t benefited investors and retirees. After stocks reached all-time highs last...