The Fed & Trump: A Battle of Money The view of today’s economic landscape makes little sense. The Fed is actively decelerating the money supply to fight its perceived fear of an inflationary surge. President Trump is trying to increase the money supply to reignite the economy. And to make matters worse, anti-trade policies from … Read more
Printing Our Way to Prosperity The Federal Reserve was able to print its way out of the tech and mortgage bubbles which has given investors confidence that the Fed will be able to print its way out of our next crisis. Rather than protect themselves against the next recession, investors are betting their life savings … Read more
Why the Fed Will Cause Interest Rates to Fall Few people understand what drives the value of interest rates, yet most believe that interest rates are going to continue rising. Last Friday, Dr. Lacy Hunt of Hoisington Investment Management Company spoke at the annual Strategic Investment Conference in San Diego. This conference is attended by … Read more
Going Once, Going Twice… Next Monday investors worldwide will be focused on the outcome of the planned 3-year, 10-year, and 30-year U.S. Treasury bond auctions. It will be one of the largest long-term bond auctions in the history of this country. Speculators have been heavily shorting U.S. Treasury bonds for the past month as they … Read more
The Tapped Out American Economy Following my update last week, a friend (and neighbor) asked me about productive and unproductive debt, because he was surprised to learn that nearly half of the money our government borrowed in 2017 went to pay Social Security benefits. This brought up the question: what is the difference between productive … Read more