What is the Real Purpose of the Federal Reserve?
The Federal Reserve- Is the Federal Reserve really doing such a bad job… or does it actually do exactly what it’s supposed to do, but the average American is in the dark about what that is? The Federal...
View ArticleBernanke’s Bigger Bubble: QE-3 and the Coming Economic Crash
Why monetarist theory is flawed Federal Reserve Chairman Ben Bernanke really means it this time. He will rescue the economy. Ben S. Bernanke for the first time pledged that the Federal Reserve will buy...
View ArticleGold and the Federal Reserve
Gold-US Dollar Link The $1800 per ounce level continues to be a major technical resistance area for gold. After hovering near $1800 recently, gold moved sharply away from that level last week to close...
View ArticleIn 1929, Deflation Started in Europe Before Overtaking the U.S.
Marcus Aurelius was the last of the “Five Good” Roman emperors and is also considered one of the most important members of the Stoic philosophers. He ruled Rome from 161 to 180 AD. He brilliantly...
View ArticleWhat are “Foreign Exchange Reserves”?
Will the U.S. Dollar Be Replaced as the World’s Reserve Currency? Foreign Exchange Reserves are foreign money held by International banks for use in international trade and in an effort to diversify...
View ArticleSequestration, Currency Wars, Inflation and Ben Bernanke
By Douglas French Laissez Faire Club Only in government speak can more = less We thought for sure the shrill cries of Sequestration hell, fire and brimstone were going to get Congress to hit the panic...
View ArticleThe Effects of Tapering Off the FED’s Stimulus Program
Here’s an economic irony for you. Less inflation means lower prices for you and I. However, to some who work for the Federal Reserve, that means things are off target and the economy still needs more...
View ArticleRising Inflation vs. FED Tapering
Up until recently we rarely heard the word “tapering” but now it seems to be everywhere. Why? Because in June FED chairman Ben Bernanke floated a “trial balloon” and mentioned “tapering”. By this he...
View ArticleThe Case of the Disappearing Gold
When I was in the 6th grade (many, many years ago) my class took a field trip to New York City and visited the NY FED. The highlight of the trip for me was a ride down the elevator (or more precisely...
View ArticleHow The Federal Reserve is Making Us Poorer
In today’s article Lacy Hunt looks at the Federal Reserve’s economic model and a few important questions regarding their policy, including, “How accurate have the FED’s previous predictions been ?” and...
View ArticleTaper Caper: Conspiracy Theory
By John Mauldin Last Thursday, prior to the FOMC announcement, I was invited to come sit with another group of friends and traders everyone was sure there would be some type of tapering. That message...
View ArticleTaper Caper: Has the FED Been “Politicized” or “Captured”?
By Ben Hunt, Ph.D. Two things happened this week with the FOMC announcement and subsequent press conferences by Bernanke, Bullard, etc. – one procedural and one structural. The procedural event was the...
View ArticlePushing on a String, Velocity of Money and Money Multiplier Conspire Against...
Under certain circumstances such as high national indebtedness, fear of bad economic times or when interest rates approach zero, monetary policy becomes ineffective in enticing consumers into spending...
View ArticleFED Looks for New Ways to Crank Up Money Supply
With all the talk about “Tapering” you’d think the FED was actually considering reducing it’s money pumping. But in actuality that is not it at all. The FED is afraid that it is creating a a bubble in...
View ArticleInflation Expectations and the FED
As inflation expectations rise the FED has less and less “wiggle room” to stimulate the economy. But how do you measure “inflation expectations”? In today’s article, Chris Ciovacco will show us. ~Tim...
View ArticleHow “Excess Reserves” and the Money Multiplier Could Trigger Inflation
Banks have $2.5 trillion parked in “excess reserves”. This is money on deposit with the FED. The FED pays a miniscule amount of interest on these reserves but the banks are willing to loan it to the...
View ArticleTaper Caper: The Consequences of Institutionalizing Q.E.
By Ben Hunt, Ph.D. Previously, we discussed the Bureaucratic Capture of the FED and the institutionalizing of QE. QE is adrenaline delivered via IV drip … a therapeutic, constant effort to maintain a...
View ArticleIs the Federal Reserve Right About Inflation?
The Federal Reserve no longer uses the Consumer Price index to calculate its monetary policy adjustments and instead use the Median CPI. So instead of calculating a weighted average of all of the...
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Various Methods of Calculating Inflation
Why are There So Many Different Ways to Calculate Inflation? We’ve all heard the old saying, “Figures don’t lie but liars figure” or perhaps “You can make numbers say anything you want“. Both of...
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What are Excess Reserves and How Could they Spark Inflation?
How can you possibly have too many reserves? You would think that the more reserves the healthier the institution and so there would be no such thing as “excess reserves”. We’ve mentioned this in...
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