Stocks Rise After Fed Minutes Release, But This Dead Cat Can’t Bounce Forever
Stock markets rose Wednesday in the aftermath of the release of the minutes from last month’s FOMC meeting. Overall, markets viewed the minutes as a positive, confirming that the Fed intends to pause the reduction in its balance sheet and will likely not hike rates again this year. FOMC participants found it strange that balance sheet normalization had gone on...
Is Europe’s SWIFT Alternative the Beginning of the End for the Dollar?
After threats to establish its own alternative system to enable trade with Iran failed to move the United States government, the European Union went ahead with its plans to operate a “special purpose vehicle” to enable European countries to trade with Iran. The vehicle, known as the Instrument in Support of Trade Exchanges (INSTEX) will initially focus on pharmaceutical,...
Potential for Tighter Gold Supply in 2019 Should Lead to Rising Gold Prices
Those familiar with gold markets know that it’s becoming increasingly difficult and expensive to mine gold. Output of gold from mines is expressed in grams per tonne, with the highest-grade underground mines producing 15 to 21 grams of gold per tonne of rock mined, while open-pit mines only produce 4.5-7.5 grams of gold per tonne. Think about that for a...
Chinese Government Joins the Global Gold Buying Spree
Venezuela is trying to sell its gold while Russia and Europe are buying. Overall, central banks added over 651 tonnes of gold to their coffers in 2018, more than any other year since 1971, the year the gold window closed. Flying under the radar, however, is China, which has started adding gold to its reserves in greater quantities this...
The Taxes That Soak the Rich Will Eventually Trickle Down
With the Democratic takeover of Congress calls have come for new taxes on income and wealth. From calls to raise the highest tax bracket to 70% on the ultra-rich to proposals for an annual wealth tax on the wealthy, ideas abound for ways to soak the rich and get more money for various government programs and projects. On the one...