Federal Reserve To The Rescue?

The Fed’s Functions Since it was established in 1913 to be the Central Bank of the United States, the objectives of the Federal Reserve have changed.  Originally, the main job of the Fed was to enhance economic and price stability to lessen severe economic swings.  Since then, its mission has been amended over the years, […]

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Gold Approaches Major BUY Zone (Chart of the Day 12)

Will This Time Be Different? Precious metals have disappointed their fans and enthusiasts for YEARS.  After peaking at about $1900 per ounce in 2011, Gold is still 1/3 lower 8 years later. The 2011 runup was the result of inflation fears from Quantitative Easing (QE) by the Federal Reserve.  QE was the program of massive […]

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Is Another Financial System Crisis Dead Ahead?

Has The Fed Miscalculated, AGAIN?? The recent about-face in US Treasury rates is nothing short of stunning.  Or is it? At the end of 2015, Janet Yellen’s Federal Reserve first began the process of unwinding the prior years of stimulus.   The key “Federal Funds” rate target was hiked a full five times.  Even so, […]

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Crashing Crude Oil Prices: A Sign of Oncoming Recession?

Crude Oil in Record Setting Plunge. Just two weeks ago, a barrel of West Texas Intermediate Crude Oil (WTIC) fetched $75, a new multi-year high.  Today, that same barrel trades at just above $55, a loss of 27%.   This price collapse in Oil was the largest in that short of a time period in […]

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Peekaboo Inflation: Now You See It, Now You Don’t.

Signs of Inflation Rapidly Vanish. For the 12 months ended September, 2018, the Consumer Price Index (CPI) was reported to be increasing at an annual rate of 2.3% (https://www.bls.gov/cpi/).  The CPI is the “official” measure of how much more it costs an individual each year to maintain a consistent standard of living. Unfortunately, the CPI […]

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Are Precious Metals Finally Bottoming?

Are Precious Metals Finally Bottoming? Early this year, Gold and Silver looked like they were positioned in an outrageously bullish set up (https://markonomics101.com/2018/07/15/inflection-point-part-2-financial-assets-give-way-to-hard-assets/), but until about 3 weeks ago, they had instead, taken a huge nose dive to near multi-year lows. Recently, with the economic landscape having changed so much, the Precious Metals Sector is showing […]

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Asset Bubbles Start Popping as Interest Rates Surge.

Asset Bubbles Start Popping as Interest Rates Surge. It was “too good to be true” for “too long to be true”.  Nearly 38 years of falling interest rates (or RISING BOND PRICES) and a 9-year Bull Market in Equities appear to be beating a hasty retreat.  Lots of signs were there: this unprecedented period of […]

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Inflation: Suddenly, The Signs Are Everywhere!

Inflation: Suddenly, The Signs Are Everywhere! For what has seemed an eternity, finding tangible signs of inflation was much harder than finding the elusive “Waldo”.  Our recent piece entitled “Inflection Point (Part 5)    (https://markonomics101.com/2018/09/03/inflection-point-part-5-interest-rates-inflation-and-inflection/) looked at the amazing contradictions in the available data and raised as many questions, as answers. Suddenly, market signs of […]

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