The Fed has a very serious problem on its hands.
That problem concerns the fact that for seven years the Fed has spread the myth of a “recovery.”
I say “myth” because the reality is that when you remove accounting gimmicks, the US has been a “hair’s breadth” away from a recession since 2010.
The most obvious gimmick being employed is the phony “deflator” used to understate inflation and overstate growth.
By Stefan Wieler from Goldmoney. The full text with additional charts can be accessed as PDF here
Since the recent US elections gold prices in USD have sold off 7% and prices are down 13% from the year’s highs. This has led some market commentators to declare this as a turning point in the renewed upward trend in gold prices that began last year. In this note we analyze the recent move in prices within our gold price framework with specific focus on three questions:
Did Jeff Gundlach do it again? Shortly after the DoubleLine manager told Reuters yesterday afternoon that the Trump rally is ending, that "stocks have peaked" and that it is "too late to buy the Trump trade", US stocks tumbled to session lows, and have continued to drop overnight, with S&P futures down 0.3%, alongside sliding Asian and European markets; oil and the dollar are also down with the only asset class catching a bid are 10Y TSYs, whose yields are lower at 2.43% after reaching an 18 month high of 2.492% overnight ahead of today's nonfarm payrolls report.
President-elect Donald Trump is filling his high-ranking cabinet positions with all sorts of picks, ushering in an era of either utter confusion or revolutionary action. He met with a candidate who wants to end the Federal Reserve banking system and take the power away from the Elite. A tall task that has proved costly for previous presidents. Anti Media reports: On Monday, after meeting with Goldman COO Gary Cohn, the president-elect had a one-on-one with a wildly outlandish candidate for Treasury Secretary who has flown a bit under the radar.
Is Janet Yellen trying to crash stocks to screw Trump?
Ever since the $USD began its bull market run in mid-2014, the Fed, lead by Janet Yellen, has intervened whenever the $USD cleared 98.
The reason for this was the following…
Over 47% of US corporate sales come from abroad. With the $USD spiking, pushing all other major currencies generally lower, US corporate profits began to implode. As we write this today, profits have fallen to 2012 levels.
Note when this whole profit massacre began.