Yet Dudley was coy on just how many rate increases he envisioned, saying only that he expected the central bank to move at least more aggressively than current futures-market predictions for only one rate increase by the end of 2017.
While the world’s most influential central bank struck some confident tones in a policy statement last week, more recent data showing the US economy has expanded at an annual rate of roughly 1% so far this year emboldened those who thought the Fed would not tighten monetary policy any time soon.
Political and economic uncertainty creates a rush to buy gold (nervous nelly)
“Gold is scarce, it doesn’t corrode, it’s got these magical qualities that people prize, the ancient Egyptians loved it, the Romans loved it,” said Eric Kirzner, who teaches finance at the University of Toronto.
“It’s been something that people have held for thousands of years, in fact. But it doesn’t have investment qualities,” cautions Kirzner.
The Excess Of Less (jdargis)
Like extreme thinness, minimalism can be a boast, a way to signal that you have the resources and the time to maintain a streamlined existence. Remember how gluten-free food is more expensive? Remember the excoriation of the Moon Juice Lady, whose costly diet of food-like substances became, for a hot second, the Internet’s most gleeful hate-read?
From the “over-expansion of credit” leading to banking failures in 1255-62 in Italy to 2015’s “‘end’ of The Fed’s zero interest rate policy,” stock markets have risen and fallen and risen some more on the back of wars, manias, crises, and panics since The Middle Ages….
Inefficiencies in new economic infrastructure aren’t exactly new. Because the state doesn’t centrally plan and roll out new technologies in a completely rational fashion—matching demand, distribution, and supply—wrinkles and bubbles develop. Incentives may be available for one component of the technology but not for others. And so overinvestment in one stage of the process coincides with underinvestment in another stage. Which is why we have bubbles. The earliest telegraph lines from Boston to New York City stopped at the Hudson River—and messages had to be carried across the Hudson on a boat. In the 1990s, information would travel at rapid speeds across the country on fast cables but slow down in the last mile. (I wrote a book about this in 2007.)
In June, VW Group agreed to a $15 billion settlement with the Department of Justice. The agreement mandates that the automaker buy cars back from their owners at the price their vehicles were worth before VW Group’s cheating scandal came to light. Owners and lessees of affected diesels will also receive $5,100 to $10,000, depending on the vehicle (a graduated table of settlement payments can be found here). If CARB approves a fix for the affected diesels, owners could also opt to pass up the buyback and have their car fixed for free. That would save VW Group money out of the $10 billion set aside for buybacks.
The divide between the two parties over the issue is the widest it has been in the decades since it emerged as a public policy matter. That is all the more remarkable given that during the 2008 election, the Democratic and Republican positions on climate change were almost identical.
That year, Mr. Obama and the Republican nominee, Senator John McCain of Arizona, spoke of the need to address the human causes of global warming, and they proposed a nearly identical policy — a “cap-and-trade” plan, which would have limited carbon dioxide emissions and created a market for trading pollution credits.
Gold & Silver
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