Financial Sense Blog

Fed Mandates Inflation

Much of the content of the latest Fed statement, released on September 21, echoes the central bank's previous post-credit crunch pronouncements: there is still too much slack in the economy, interest rates are still going to be near-zero for an "extended period," and the Fed will continue to use payments from its Treasury purchases to buy yet more Treasuries.

The Ride of the Keynesian Cowboys

To ease or not to ease? That is the question we will take up this week. And if we do get another round of quantitative easing (QE2), will it make any difference? As I asked last week, what if they threw an inflation party and no one came? We will take as our launching pad today's unemployment numbers, which serve to demonstrate just why the Fed may in fact be ready for some monetary shock and awe.

A Spooked Economy in October

Last week we received worse than expected unemployment numbers, challenging recent claims that the recession has come and gone. Also, as the economy continues to suffer the after effects of the Federal Reserve-created bubbles of the last decade, there is renewed interest in gold.

Damn The Torpedoes – It’s Fiat Nirvana Or Bust

The following is commentary that originally appeared at treasurechests.info for the benefit of subscribers on Tuesday, September 28th, 2010.

Th*nk*ng Yields: Some good news

Crops are up, property taxes declining, campaigns in full swing

We are looking at a record harvest in Northern Illinois in 2010. Property tax assessments cut across the board by 10%, Record number of properties up for sale. Campaign 2010 in full swing. Confused Christopher Columbus lives on 518 years later.

Bad News Is Now Good News

The markets are in the “bad news is good news” mode, meaning that the poor employment report of Friday, showing private sector job gains remain very weak, would increase the likelihood that the Fed would continue injecting money into the financial system. So sure that stocks will continue to levitate, investors snapped up equities of all stripes, pushing stocks to their best levels in five months. If and when the economic data begins to turn significantly for the better, the financial markets will be looking for a bailout from the Fed pumping liquidity (money) into the financial system.

U.S. Dollar May Rally In Coming Weeks

Lopsided Sentiment Raises Yellow Flag

When one side of any market gets crowded, it is time to prepare for a possible reversal. While there are numerous reasons to be bearish on the U.S. dollar long-term, there are some short-to-intermediate-term factors that may cause the dollar to stage a counter-trend rally in the coming weeks.

Are U.S. Investors Driving the Gold Price?

The U.S. is a world of well educated, highly sophisticated investors who use an extraordinary well developed set of markets through which to invest into every item that has a market and usually at prices that attract the world of buyers to the oil market, currencies equities bonds and the rest.

Castles Made of Sand Return to the Sea

Eventually

A short commentary on money, markets, and the importance of not being afraid of the future.

Parabolic Trends

By Trader Garrett

A miniature potential parabolic trend has emerged in the XAU recently that is driven by greed and the fear of missing out. It is unhealthy, unwise and unsustainable.

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