Commodity Trade Mantra

Posts Tagged ‘Ben Bernanke’

Why the Government Hates Gold - Who is left to speak the Truth?

Corporations sold their products on cheap credit, made their profits from cheap credit & then depended on cheap credit to issue their bonds, buy back their own stock & pay their bonuses. Meanwhile, Washington ran deficit after deficit, made possible by cheap credit. And now, practically every sentient being in the nation needs cheap credit. Who is left to speak the truth?

Why You Should Be Prepared for Both Inflation and Deflation

Today’s investment climate is the most challenging one you have ever faced, because inflation and deflation are both possibilities in the near term. Most investors can prepare for one or the other, but preparing for both at the same time is far more difficult. What should you do? The answer is prepare for both, watch carefully and stay nimble.

Gold: The One Commodity Buffett and Bernanke Just Don’t Understand

Warren Buffett once famously said that gold has no utility. Anyone watching from Mars would be scratching their head over the Earthlings & their fascination with a metallic element. Former Fed-head Ben Bernanke once told Congress that gold is not money & it is just a precious metal — the price for which no one really understands.

Why the Dollar’s Reserve Currency Status is America’s “Achilles Heel”

Without the belief of the U.S. dollar as an acceptable world reserve currency, the U.S. is a bankrupt nation. The reserve currency is that country’s Achilles heel, and the stock and bond markets are not prepared for the consequences of the U.S. dollar, that’s backed by nothing other than faith, no longer being a reserve currency.

Meet The World's First "Undercover, Super-Secret Central Banker"

World’s most powerful central banker was so terrified of leaving a paper trail with his real name in what he realized was borderline illegal meddling in financial systems, he felt compelled to use a pseudonym!. Mr.Quince Edward (QE) was the pseudonym then-Fed Chairman Bernanke used when conferring with colleagues during financial crisis.

Will Gold Crash With The Dow... Or Soar?

The market is experiencing a divide that didn’t exist before. Until recently, there have been many people (millions) who misunderstood gold, treating it like a stock. Many of those people are disappearing from the market (having been washed out by the paper gold failure), and soon, most of those who are still in gold will be those who understand it.

Federal Reserve Policies Cause Booms and Busts

Federal Reserve monetary expansion & artificially low interest rates generated wide imbalances between investment & housing borrowing on the one hand & low levels of real savings in the economy on the other. It was inevitable that reality of scarcity would finally catch up with all these mismatches between market supplies & demands.

A New Fed Playbook for the New Normal

The Fed knows very well that the economy needs zero% rates to stay afloat. So while the market talks the talk on raising rates, the Fed will continue to walk the walk of zero percent interest rates. Since none of the Fed’s prior QE programs were followed by rate hikes but by more QE, why should this time be any different?

Why the Federal Reserve Will Launch Another Round of QE

Equity investors drove stock markets higher each time a new round of QE was announced. QE reflated US economy by pushing up asset prices. Odds are quite high that it will begin to deflate again when QE ends in Oct. Should that occur, would the Fed then launch yet another round of QE or fall back to severe recession & deflation?

How Low does this go before there’s a Currency Crisis?

We have somehow been conned into believing that the path to prosperity is for the grand wizards of the financial system to conjure paper currency out of thin air. Yet this notion of ‘money backed by nothing’ is an absurd fantasy that has failed every single time it has ever been tried before in history.

Bitcoin is Cryptographic Gold - Do You Agree?

On a conceptual level, Bitcoin has more in common with gold and silver as monetary assets than with state fiat money. The supply of gold, silver & Bitcoin, is not under the control of any issuing authority. Precisely why such assets were chosen as money for thousands of years.

At the Fed, The More Things Change, the More They Stay the Same

Yellen practically bent over backwards to reassure Wall Street that the Fed would continue its accommodative monetary policy well into any new economic recovery. The same monetary policy that got us into this mess will remain in place until the next crisis hits. When will this madness stop?

The Legacy of Ben Bernanke : A Weak and Mediocre Economy

If there was no pre-crisis credit boom, there would have been no large financial crisis and thus no need for Bernanke to have done better during and after. Bernanke’s policy is also rightly criticized as the great cost of these post-crisis policies is the intrusion of the Fed into politics and fiscal policy.

The US Economy Is Growing Much Slower Than You Think …

Spending the savings or take on more debt makes a new kind of growth today: The more you grow, the poorer you get. The economy used to grow by making people wealthier. Now, consumers go further into debt, while their incomes are stagnant or falling.

The Emerging Market Volatility May Just Be The Beginning

The volatility in Emerging Markets which began in 2013 may just be beginning as much of the excess liquidity that went in search for yield may reverse course. During the next few months to few years, we would not be surprised to see even greater stress as more volatility returns to markets.

A Central Banker Has A "License To Lie’

To mislead investors is actually a key skill required by a central banker’s job description. Revealing the true state of national finances at a time when a devaluation or comparable financial crisis is looming might be to guarantee the loss of the central bank’s entire reserves.

The New Fed Chair - Janet Yellen's Impossible Task

Janet Yellen is supposed to accomplish what simply cannot be done, namely ‘unmake’ the mistakes she and her predecessor have jointly committed (let us not forget, she was vice chair and never once dissented with the decision to implement an extremely loose policy).

What they say on Wall Street - Don’t Fight the Fed

Simply Google what they say on Wall Street – “Don’t fight the Fed,” and you’ll get 468 million results. Does the Fed Really Create the Boom-Bust Cycle? When the Fed is printing, get your money in stocks. When they take away the punchbowl, turn out the lights and sell your stocks—the party’s over.

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