The Fed Tightens Last Wednesday the Federal Reserve (or Fed) made a major announcement that they will begin unwinding their $4.5 trillion-dollar balance sheet that is made up of mortgage-backed securities and U.S. Treasury bonds. The plan is to start by selling off $10 billion per month of those holdings and increasing the amount in … Read more
The Petroyuan Is Coming As I was writing last week’s update about the potential end of the petrodollar system, Venezuela announced that they are planning to sell their oil for a different currency other than the dollar. Not even forty-eight hours later, they announced they will be selling their oil exclusively for Yuan. That decision … Read more
China, Gold, Oil and the End of the Petrodollar Last year China launched a program that will soon allow oil to be traded for gold-backed Yuan (Chinese currency) that, if successful, will have major implications for gold, oil, the U.S. dollar and the petrodollar system. Many of you know that I believe gold will significantly … Read more
Central Bank Collusion In the early days of central banking, none of the central bankers really knew what they were doing, because there wasn’t any policy or procedures to follow. One could make that same argument today, expect central bankers now have mandates that they hope to achieve. While history has proven their inability to … Read more
When Buyers Become Sellers The biggest generation in the history of the United States, or Boomers, are heading into retirement, with the first group of Boomers turning seventy and a half this year. They have created unparalleled economic growth over their working careers which has translated into incredible amounts of prosperity for our country. Now, … Read more