Stock Markets Give Up Gains as Fed Signals No Rate Cut in Sight
By now most people realize that the only reason stock markets have done so well over the past few years is because of the Federal Reserve’s loose monetary policy. Low interest rates have spurred companies to issue massive amounts of debt in order for them to be able to buy back their stock shares. In fact, over the past...
One Important Thing to Remember Before You Retire: Your Money Isn’t All Yours
The stock market bull run of the last three years has resulted in the creation of more 401(k) millionaires than ever before. But while it can be tempting to look at your 401(k) balance and think that you’re going to do well in retirement, you can’t forget one important thing: taxes. One of the reasons 401(k) balances grow as large...
Gold Repatriation Continues Apace: Do These Countries Know Something That We Don’t?
It’s no secret that central banks have been large buyers of gold over the past few years. Last year nearly set a record for gold purchases by central banks and the trend looks set to continue this year. But those central banks who already own gold are increasingly looking to hold onto it themselves. They no longer trust that...
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...