Tag Archives for " US federal reserve "

The monster from the ID – inflation

The 1956 movie Forbidden Planet was at its core a tale of hubris; that technology can overcome nature, whether for Krell or human. The analogy for  markets might be the conceit that the business cycle can be expunged without consequence and that one can borrow oneself out of debt.  Like the ‘monster from the Id’ […]

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Rising Bond Yields & a Flattening Curve

A flattening yield curve is often seen as an ominous portend of economic doom, while a forced increase in interest rates can often ensure its delivery.  This convergence however, is the conclusion of a tale that has been in the making for a couple of decades, but one where the inflationary consequences now threaten to […]

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US debt ceiling and the point of no return

What is the drifting gold price trying to tell us, because rising inflation and reckless government fiscal policies suggests impending currency debasement? Is this just another case of cognitive dissonance, that has accompanied COVID-19(84), or perhaps a temporary phenomena such as a big holder being forced to sell gold to raise USD to cover some […]

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Fed flip-flops on tapering again – haven’t we been here before?

A solid monthly jobs report and the Fed rushes out some rumours that it may bring forward the supposed planned tapering. Yes, they’re that obvious!  From the subsequent -6% drop in the gold price, it would seem a few precious metal traders were happy to take the bait, although the lack of follow through from […]

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June employment data – enough to keep the various bull(S) spin machines fed

June’s US non-farm payroll numbers probably contain enough straws for punters to continue to spin a positive prognosis for markets.  A further  rise in monthly private sector jobs of  +662k,  suggests the US recovery is building, but the modest increase in average earnings, given these are focused on the lower paid and more transitory jobs […]

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Command economics, or just fantasy financing?

Are the lockdowns really an attempt to spare over-whelming health services, or an excuse to bail out all those bad loans sitting on bank balance sheets since 2008? Either way, as IFR data emerges and debt liabilities spiral out of control, the justification and ability to sustain these policies are crumbling. Without central bank support […]

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