Yesterday, Janet Yellen stated that the Fed was “wrong” about employment and inflation.
I realize that the significance of this might be lost on many individuals. The Fed’s ENTIRE purpose is to pursue “maximum employment” and “stable prices”(aka low inflation). Indeed, these are LITERALLY the words in the Fed’s official “Dual Mandate” from Congress.
While bond notes were put forward as a panacea to diminish the flight of wealth from Zimbabwe... (as Steve Hanke noted, it was not)...
Just hours before the Trump tax plan was leaked this morning, Goldman noted that "even if this tentative budget agreement in the Senate becomes official the forthcoming proposal would have to be scaled substantially to fit within the fiscal constraints Congress is likely to impose" which we summarized as follows:
In other words, for all the hype, the final Trump tax cut - if it passes - will be a pale shadow of its initial proposal
Goldman also presented the following comparison table to summarize how the expected plan would fare in context:
As ZeroHedge readers are keenly aware, 2008 kicked off the largest financial engineering experiment in history – namely, the beginning of 12.3 Trillion in QE and the lowest interest rates in 5,000 years. The plan, hatched by Bush-era Fed Chairman Ben Bernanke and Treasury Secretary Hank Paulson, created a ‘Fed Put’ underneath the markets first made popular by Alan Greenspan – an implicit guarantee that no matter how bad things got, the Fed would actively combat financial disaster.
The ONLY Variable That Matters To The Price Of Gold
Written by Jeff Nielson, Sprott Money News
There are all sorts of positive fundamentals when it comes to the price of gold. There are the positive supply/demand fundamentals. The gold market is in a supply deficit. Mine reserves are at a 30-year low. The price of gold is below what is necessary to sustain the gold mining industry.