Janet Yellen

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Off The Cuff: The Schizophrenic Fed

Rates are going higher. No they aren't. Yes they are. No...
Friday, July 14, 2017, 12:59 PM

In this week's Off The Cuff podcast, Chris and Axel Merk discuss:

  • No Rate Hike After All?
    • Yellen sings a dovish tune this week
  • Wait, Wasn't The Fed Just Warning It Would Tighten?
    • Yep. It was talking tough up until now
  • Why Can't The Fed Make Up It's Mind?
    • Because it's in a box. Jawboning is all it can do at this point
  • The Next Fed Head
    • A complete transformation may be in store soon

Chris and Axel unpack the latest guidance from the Fed issued this week. For those listening, the Fed's inconsistency is understandably infuriating. One week it's warning about tightening ahead, the next it's telling folks rates are just fine where they are.

Axel, who has more inside access to current & past Fed officials than anyone we know, feels that the Fed is simply trying to walk a tightrope it knows will one day snap. At this point, it's trapped. It needs to normalize rates, but doing so will crash the markets. So it's using the only tool it has -- confusion -- to keep the system fooled that everything is under control. Of course, one day the ruse will be discovered. But until then, the Fed will obfuscate, vacillate, prevaricate -- whatever it can do to keep the status quo in place for one more day...

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
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The Time Thief

How the Fed steals from tomorrow (and today, too)
Wednesday, July 12, 2017, 10:14 PM

Recently, the Federal Reserve has been on a mission to boost stock prices and make sure that no financial crises ever happen again.

They’ve been doing this by explicitly propping up financial markets (and, I believe, suppressing others) in ways that enrich the speculator class generally, and the big banks specifically. » Read more

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Off The Cuff: No More Financial Crises "In Our Lifetime"

Did Janet Yellen really just say that???
Friday, June 30, 2017, 2:04 PM

In this week's Off The Cuff podcast, Chris discusses:

  • Market Jitters
    • What will happen if the central banks turn off the money?
  • No More Financial Crises "In Our Lifetime"
    • Did Janet Yellen really just say that???
  • Our States Are Falling Into Bankruptcy...
    • Illinois, Connecticut, Maine & more
  • While The Banks Get Even Fatter
    • Income from excess reserves to rise to $50 Trillion by 2019

This week, Chris takes a moment to share his thoughts in depth on where we are in the global debt saga. The overhang is getting worse, growth is not riding to the rescue as hoped, and the central banks are running out of both smoke and mirrors to keep the game continuing. Should the $200 billion monthly bonanza of central bank liquidity start decreasing -- as is now being increasingly discussed -- expect markets to go south quickly.

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
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Why The Markets Are Overdue For A Gigantic Bust

It's just not possible to print our way to prosperity
Friday, June 9, 2017, 7:38 PM

As much as I try, I simply cannot jump on the bandwagon that says that printing up money out of thin air has any long-term utility for an economy.

It's just too clear to me that doing so presents plenty of dangers, due what we might call 'economic gravity': What goes up, must also come down. » Read more

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Why This Market Needs To Crash

And likely will
Friday, March 24, 2017, 10:12 PM

Like an old vinyl record with a well-worn groove, the needle skipping merrily back to the same track over and over again, we repeat: Today's markets are dangerously overpriced.

Strange as it may sound, it's our opinion that the sooner a major market correction happens, the better. Crash now while there’s still chance of picking up the pieces afterwards and making something useful from them. The longer we push off the inevitable fall, the more destructive it will be and the more difficult it will be to recover from. » Read more

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Banks Are Evil

It's time to get painfully honest about this
Friday, March 17, 2017, 8:05 PM

I don't talk to my classmates from business school anymore, many of whom went to work in the financial industry.

Why?

Because, through the lens we use here at PeakProsperity.com to look at the world, I've increasingly come to see the financial industry -- with the big banks at its core -- as the root cause of injustice in today's society. I can no longer separate any personal affections I might have for my fellow alumni from the evil that their companies perpetrate.

And I'm choosing that word deliberately: Evil. » Read more

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Fight Cage

It's time we stop being the victims in this experiment
Tuesday, February 7, 2017, 12:51 PM

To my eye, society is fraying apart. People are confused, angry, isolated, and increasingly willing to fight each other. Formerly peaceful resistance is turning into violence. Our baser emotions like fear, anger -- rage, even-- are now bubbling at the surface.

It's entirely reasonable for people to be experiencing such emotions right now. But in most cases, their anger is misdirected. » Read more

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Off The Cuff: Multiplying Market Oddities

Rising rates are creating cross-currents everywhere
Thursday, November 17, 2016, 8:15 PM

In this week's Off The Cuff podcast, Chris and Axel Merk discuss:

  • Impact Of A Trump Presidency On The Markets
    • What will the most likely trends be?
  • Plummeting Bond Prices
    • Good or bad?
  • The Unbearable Lightness Of Stocks
    • Rising prices in the face of rising interest rates
  • Gold's Prospects
    • Inflation? Higher rates? What will it mean for gold?

Axel and Chris address the increasing sell-off in the bond market, which can also be described as the sudden rising of interest rates. In an over-indebted financial system as ours, rising rates will make it more expensive to service the outstanding debt, placing increasing headwinds on economic growth. Right now, the stock market is ignoring that -- instead, it's pricing for perfection. Axel warns that this "oddity" will need to correct soon, one way or the other.

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today. » Read more

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Off The Cuff: Rate Hike!

What does it portend?
Friday, December 18, 2015, 1:00 PM

In this week's Off The Cuff podcast, Chris and Charles Hugh Smith discuss:

  • Rate Hike!
    • The Fed raises interest rates for the 1st time in a decade
  • Shock Wave
    • Even a small rate increase can disrupt today's highly-leveraged economy
  • The Beginning Of The End
    • The 'Debt Is Good' Era May Finally Be Ending
  • Modern Game Of Thrones
    • How The Power Structure Clings To Its Control

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today. » Read more

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Pop! It’s Time.

The end of the (most recent) bubble era is here
Monday, December 14, 2015, 1:51 AM

The Federal Reserve is a serial bubble blower; and it has done it again. As we’ve been saying for a long time (too long, it seems), when this bubble comes apart, massive disruption and economic pain will follow.

Based on recent events, it seems that the time has finally arrived to say: This is it.

It’s done. Put a fork in it. It’s over. » Read more