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Archive for the ‘Business cycle’ Category

US 10-year Treasury yield falls to record low

05 Jul

This is not a sign of a healthy economy as money flows into “safe” government bonds. Gold is popping again this morning.  With all the new money central banks have created since the Great Recession of 2007-2009, the financial system has had to absorb trillions of dollars of additional cash, which propelled asset prices highers for the past seven years.  In other words, we are in another bubble.  

“U.S. sovereign bond prices were higher Tuesday, after being closed Monday for the July 4 holiday, resuming a strong “safe-haven” bid.”

Source: US 10-year Treasury yield falls to record low

 
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Posted in Business cycle, Central banks, Economy, Federal Reserve, Inflation, Money

 

Time for a breather for the roaring gold and silver markets?

04 Jul

The move in metal prices has has been spectacular.  It would not surprise me that we see a correction in the weeks ahead.

“Gold rose as political turmoil following Brexit supported prices after activity in China pushed them back towards last week’s high.”

Source: Gold pushes back towards 2 year high, silver crosses $21/oz

 
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Posted in Business cycle, Central banks, Economy, European Union, Federal Reserve, Interest rates

 

An outstanding lesson in economics for the Federal Reserve

01 Jul

Economist Mark Thornton explains interest rates.

 

Source: EconomicPolicyJournal.com: In The Wall Street Journal: Mises Scholar on the Natural Interest Rate

 
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Posted in Business cycle, Central banks, Economy, Interest rates

 

Central bankers have lit a fuse of historic importance

29 Jun

The $11.7 trillion invested in negative-yield bonds was 12.5 percent higher than at the end of May, according to Fitch Ratings.

Source: There are now $11.7 trillion worth of bonds with negative yields

 
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Posted in Business cycle, Central banks, Interest rates, Politics

 

Greenspan Warns A Crisis Is Imminent, Urges A Return To The Gold Standard

28 Jun

Greenspan is reverting to his 1966 analysis, Gold and Economic Freedom.

 

“We’re dealing now in very early days a crisis which has got a way to go.  If we went back on the gold standard and we adhered to the actual structure of the gold standard as it exited prior to 1913, we’d be fine.  Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we’ve had in the United States, and that was a golden period of the gold standard.”

Source: Greenspan Warns A Crisis Is Imminent, Urges A Return To The Gold Standard

 
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Posted in Business cycle, Economy, Federal Government, Federal Reserve, Gold standard, Stock market, U.S. Dollar

 
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