janet yellen Tag

As the Federal Reserve prepares to begin paring the size of its $4.5 trillion balance sheet next month, analysts at Deutsche Bank on Wednesday warned that what they have dubbed the “great central bank unwind” is one of several candidates for creating the next financial crisis. “When looking for the next financial crisis, it’s hard to escape from the fact that we’re seemingly in the early stages of the ‘great unwind’ of global monetary stimulus at the same time as global debt remains at all-time highs following an increase overRead More

Posted On July 26, 2017By HoudiniIn Articles

Central Bankers ‘Are’ The Crisis

If there’s one myth – and there are many – that we should invalidate in the cross-over world of politics and economics,it‘s that central banks have saved us from a financial crisis. It’s a carefully construed myth, but it’s as false as can be. Our central banks have caused our financial crises, not saved us from them. It really should -but doesn’t- make us cringe uncontrollably to see Bank of England governor-for-hire Mark Carney announce -straightfaced- that: “A decade after the start of the global financial crisis, G20 reforms are building a safer, simplerRead More
The global dollar-based monetary system is in serious jeopardy, according to former Texas Congressman Ron Paul. And contrary to Fed Chairwoman Janet Yellen’s assurances that there won’t be another major crisis in our lifetime, the next economy-cratering fiat-currency crash could happen as soon as next month, Paul said during an interview with Josh Sigurdson of World Alternative media. Paul and Sigurdson also discussed false flag attacks, the dawn of a cashless society and the dangers of monetizing national debt. Paul started by saying Yellen’s attitude scares him because “central bankers are alwaysRead More
Federal Reserve Chair Janet Yellen is quite convinced that the United States will not experience another financial crisis for a very long time to come.  In fact, she is publicly saying that she does not believe that another one will happen “in our lifetimes”.  But there are other central bankers that see things very differently.  In fact, a new report that was just released by the Bank for International Settlements is warning that a new financial crisis could soon strike “with a vengeance”.  So who is right? It would beRead More
If something happens seven times in a row, do you think that there is a pretty good chance that it will happen the eighth time too?  Immediately prior to the last seven recessions, we have seen an inverted yield curve, and it looks like it is about to happen again for the very first time since the last financial crisis.  For those of you that are not familiar with this terminology, when we are talking about a yield curve we are typically talking about the spread between two-year and ten-yearRead More
The Fed has signalled that it will soon reduce the size of its balance-sheet BEFORE the financial crisis, America’s Federal Reserve held assets worth around $850bn. Today, the central bank’s balance-sheet is more than five times as large, at $4.5trn. It grew during and after the financial crisis as the Fed purchased vast quantities of government bonds and mortgage-backed securities using newly created money, most of it under a policy known as quantitative easing (QE). Now the Fed is preparing to sell some assets, and retire the corresponding money. WhyRead More
NEW YORK: Global stock markets moved cautiously Wednesday as geopolitical risks continued to gnaw at investor sentiment following last week’s US missile strike on Syria and soaring tensions on the Korean peninsula. Dealers remained on edge over a brewing crisis following the attack in Syria that has damaged ties between the US and Russia over Moscow’s backing for Syrian President Bashar al-Assad. Growing uncertainty ahead of a presidential election in France also kept investors on the sidelines, as did friction between the United States and China over how to manageRead More

Posted On April 13, 2017By HoudiniIn Articles

The End of Ultra-Easy Money?

After eight years of extremely loose monetary policy, the economy is great again and we are to enter into a post-stimulative era of monetary policy. So said Yellen at a recent discussion at the University of Michigan. In her words, the Fed had given the economy all the “oomph [they] possibly could” and it was time to “allow” the economy to coast along. [ZH: If GDP forecasts for Q1 are correct, this will be the weakest economy since 1987 in which rates were increased. In fact this could be the lowest sinceRead More
Gold rallied after the Federal Reserve announced an increase to its key short-term interest rate on Wednesday, but the metal’s price reaction isn’t quite the head scratcher that it seems to be. “It is a case of ‘sell the rumor (of a rate hike), buy the fact’,” said Ross Norman chief executive officer at Sharps Pixley, told MarketWatch by email from London after the announcement. “We have consistently seen double-digit percentage increases in gold prices post a rate hike perversely,” he said. That’s “counter-intuitive because higher rates would ordinarily beRead More

Posted On March 17, 2017By HoudiniIn News

Gold rallies to highest finish in two weeks

Metals jumped across the board on Thursday, with gold prices notching their highest finish in two weeks, on the heels of the dollar’s decline, which came after the U.S. Federal Reserve raised interest rates, but struck a less hawkish tone than expected. April gold GCJ7, -0.05%  rallied $26.40, or 2.2%, to settle at $1,227.10 an ounce, with prices ending at their highest level since March 2. The metal scored its biggest one-day percentage gain since June of last year, according to FactSet data. That is when the U.K. announced its decision to exit from theRead More