Reports

This post The Fed Faces Two Choices appeared first on Daily Reckoning. A man shipwrecked bobs along in his lifeboat… The cruel sun cooks him. His thirst tortures him. His sufferings are doubled, tripled and quadrupled by this impossible irony: Water, water is everywhere — yet there is scarcely a ...

By now, you’ve heard of the Green New Deal, an ambitious agenda to decarbonize the economy. The overall Green New Deal calls for ending the use of oil and natural gas, moving to electric vehicles, solar, wind and geothermal power, imposing carbon taxes to reduce C02 emissions and providing government ...

I’ve said the U.S. is caught in a debt death trap. Monetary policy won’t get us out because the velocity of money, the rate at which money changes hands, is dropping. Printing more money alone will not change that. Fiscal policy won’t work either because of high debt ratios. At ...

Many investors think that nothing can stop today’s stock market bubble. Throughout history, tighter central bank policy or tighter private sector financing terms are typically what pop bubbles. Today’s bulls rest easy with the notion that central banks “have their back.” Central bankers have promised not to raise interest rates ...

First the hedge funds. Now the major banks — perhaps the Federal Reserve itself? Like a cocksure prizefighter who has flattened his initial opponent, Reddit members are hot for higher glories… ‘Look what we did to Citadel. But that is merely the start. Our strength is our numbers. We are ...

The United States confronts a “reality crisis.” This we know because The New York Times — the Newspaper of Record — informs us it does. Subversive conspiracies are amok. The internet is a sewer of disinformation… Some even call the infallibility of the New York Times into question … as ...

There’s no universally agreed-upon definition of hyperinflation. But one widely used benchmark says hyperinflation exists when prices increase 50% or more in a single month. So if gasoline is $3.00 per gallon in January, $4.50 per gallon in February and $6.75 per gallon in March and the prices of food ...

The Federal Reserve printed $4 trillion in the years following the 2008 crash, expanding its pre-crisis balance sheet of about $900 billion to roughly $4.5 trillion. Many people thought, if hyperinflation were ever going to happen in the U.S., it would have already. Well, it never happened. Today, in response ...

There’s good evidence that the stock market is now in bubble territory. By some metrics, valuations are higher now than they were before the 1929 crash and are at a level second only to the dot-com crash of 2000. Shorting the stock market can be like standing in front of ...

Gamed speculation — using knowledge of how markets can be pushed to profit those doing the pushing — has long been decried. Declaring that the unproductive profiteering of greedy speculators will be the death of the Republic goes back to Rome, and in American history, to Alexander Hamilton’s battle in ...