Tag Archive for Inflation

Core PCE measure gives the Fed green light – Sober Look

This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big moves…

The Spin on Cyprus Gold Sale Rumor Is “Back Asswards” – Aaron Krowne – The Implode-o-Meter

by Aaron Krowne Founder, The Implode-o-Meter There’s been plenty of press about the gold (and silver) “crash” of April 12 and 15th, most of it yielding a not-so-subtle schadenfreude stench.  This is not so surprising, as anyone who has been openly positive about the precious metals’ prospects given today’s “new normal” of unprecedented “high-powered” money-printing…

Dangers of Janet Yellen as Next Fed Chair – Chris W. Street

Thomas M. Hoenig, the Vice Chairman of the Federal Deposit Insurance Corp, wrote an editorial today in the Washington Post complaining it is unfair that the huge too-big-to-fail banks have less scrutiny by investors because they receive government deposit insurance guarantees, borrow from the Federal Reserve at virtually no cost and have gained public confidence…

Drought To Slow Economy & Cause Inflation – Chriss W. Street

Despite the hammering from a late spring storm that blanketed much of the Mid-West and East Coast with 4 to 8 inches of snow, the National Oceanic and Atmospheric Administration [official name of the weatherman] just predicted that the 2nd worst drought since the Great Depression will continue to lay waste to wheat and corn…

Why Veteran Trader Says Inflation in 2013 Is Imminent – Money Morning

Is a spike in the monetary base – currency in circulation plus bank reserves at the Fed – the first sign of imminent inflation?

Art Cashin, the well-respected director of floor operations at the New York Stock Exchange for UBS, recently told King World News the increase in the monetary base may well be a sign of impending inflation.

Monetary base, sometimes called high-powered money, is the basis for the bank lending that drives our economy. When interest rates are normal, banks use their reserves for lending.

Unfortunately, these are not normal times. The U.S. Federal Reserve and other central banks around the world continue to hold interest rates at zero.

Zero interest rates mean zero returns. Investors don’t get paid for investing. Banks don’t get paid enough interest to compensate for the risk of lending money into the economy. Looking at it another way, there is no penalty for doing nothing with your money.

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