Rob Kirby's picture

The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system.

Chris Puplava's picture

It sure looks that way as the stimulus checks have begun to filter into the economy with minimal effect. The month over month retail sales growth has picked up modestly recently, however the year over year growth rate continues its downward trend and is likely to continue south as the affect of the stimulus checks fade.

Chris Puplava's picture

Resilient is the word to describe the U.S. economy over the past few years in its ability to shrug off rising oil prices, prices that few ever imagined would be reached this decade. Crude oil reached $60 a barrel and yet the economy rolled on, $80 a barrel and still no crushing blow was dealt.

Rob Kirby's picture

Last week began on Monday, June 9 with Lehman Brothers announcing a worse than expected 2.8 billion quarterly loss and a simultaneous announcement that they were going to raise 6 billion in new capital...

Chris Puplava's picture

A case was made for stagflation earlier in the year in a previous WrapUp, and the case for stagflation is only getting stronger. US growth is clearly slowing with a declining trend in employment and industrial production, all the while inflation continues to march ever higher.

Rob Kirby's picture

Over the past 40 or so years, our adherence to Keynesian monetary principles has necessitated and fueled the “redefinition” of how inflation is measured, and how national accounts are concocted; even the sanctity of the interest rate mechanism has been ‘neutered.’

Rob Kirby's picture

Mr. Fisher and the rest of his cronies at the Federal Reserve know very well that rapid rises in the prices of precious metals can and do ‘lay bare’ the ineffectiveness of Central Bank policy and bring into question the viability of fiat money or need for the institution itself.

Ryan Puplava CMT's picture

Oil inventories fell short of expectations last week. Supplies fell 5.32 million barrels to 320.4 million while analysts were anticipating a build. The market immediately responded and oil jumped on the release of the information and closed at $133.21 on the floor of the New York Mercantile Exchange.

Rob Kirby's picture

In the wake of the recent unprecedented and highly questionable demise of Bear Stearns, I had the opportunity to speak with Catherine Austin Fitts regarding some of the fuzzier elements surrounding Bear’s demise.

Rob Kirby's picture

Last week the Federal Reserve’s FOMC [Federal Open Market Committee] met and bestowed upon us their latest decision in monetary policy – a further cut of 25 basis points to lower the Fed Funds rate to 2%.

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