Articles related to Monetary Policy
 
Frank Shostak
Mises Explains the Difference Between Circulation Credit and Commodity Credit
In the slump of a cycle, businesses that were thriving come to experience difficulties or go under. These errors aren't specific to any one firm. They occur in tandem with whole sectors of the economy. People who were wealthy yesterday have become poor today. Factories that were busy yesterday are shut down today, and workers are out of jobs.Businessmen themselves are confused as to why. They cannot make sense of why certain business practices that were profitable yesterday are losing money toda
Sunday, January 21, 2018
Mark O'Byrne - gold.ie
The Next Great Bull Market in Gold Has Begun – Rickards
– ‘Gold is in the early stages of a sustainable long-term bull market’ Rickards – Rickards believes the next bull market in gold will be even more powerful than those of 1971–1980 and 1999–2011 – This new rally could send gold $1,475 or higher by next summer thanks to Fed rate hikes – Warns of Peak Gold ‘Physical gold is in short supply. Refiners can’t get enough to meet demand.’ – ‘Now looks like a good time to jump on board to enjoy the ride’ – The Axis of Gold ‘continue to buy gold overtly an
Saturday, January 20, 2018
Przemyslaw Radomski CFA - SunshineProfits
Will Surge in Bond Yields Smash Gold?
Yields on U.S. Treasuries have leaped recently. It will wreck the yellow metal. Or maybe not. Yields Reach New Heights. Breakthrough for Gold? Last week, we wrote that concerns emerged that China could stop or slow buying the U.S. Treasuries. The U.S. bond yields reacted strongly. We noted that in theory it should sink gold, but the usual “correlation between bullion and Treasury yields broke down thanks to the depreciation of the U.S. dollar, which supported the gold prices”. Due to the importa
Thursday, January 18, 2018
Bullion Vault
Silver to 'Outperform Gold' in 2018 as Gold/Silver Ratio Trades 41 Above 50-Year Average
GOLD PRICES for Euro, UK and Japanese investors fell back near unchanged for 2018 so far on Tuesday and silver fell to a small loss for the New Year as world stock markets pushed up to fresh record highs. Industrial commodities fell but major government bond prices rallied from their sell-off, pulling the yield offered to new buyers down from the recent multi-month highs. Dollar gold prices trim
Wednesday, January 17, 2018
Frank Shostak
Falling Prices Are a Good Thing
There is nothing wrong with declining prices. What signifies industrial market economy under a commodity money such as gold is that prices of goods follow a declining trend.According to Joseph Salerno,In fact, historically, the natural tendency in the industrial market economy under a commodity money such as gold has been for general prices to persistently decline as ongoing capital accumulation and advances in industrial techniques led to a continual expansion in the supplies of goods. Thus thr
Tuesday, January 16, 2018
Przemyslaw Radomski CFA - SunshineProfits
Macroeconomic Outlook for 2018 and Gold
Luckily or not, 2017 is behind us. It was a positive year for the gold market, as the yellow market gained more than 12 percent. However, investors are forward-looking, so let’s focus on what the coming months will bring. The next year will be shaped mostly by the following broad economic trends: Global activity is improving.Labor markets are strengthening further.Subdued inflation is finally rising (but moderately).Central banks are slowly reducing their monetary policy stimulus.Interest rates
Friday, January 12, 2018
Frank Shostak
Why Fractional-Reserve Banking Would Be Limited in an Unhampered Market
The so-called multiplier arises as a result of the fact that banks are legally permitted to use money that is placed in demand deposits. Banks treat this type of money as if it was loaned to them, thus loaning it out while simultaneously allowing depositors to spend that money.RELATED: "Austrians, Fractional Reserves, and the Money Multiplier" by Robert BatemarcoFor example, if John places $100 in demand deposit at Bank One he doesn't relinquish his claim over the deposited $100. He has unlimite
Friday, January 12, 2018
Przemyslaw Radomski CFA - SunshineProfits
Will Chinese Dragon Boost or Devour Gold?
China may slow down its U.S. debt buying. Will gold rally or plunge, then? Dragons Love Hoarding Gold and Not Only Dragons love gold. In Greek mythology, dragons were set by the gods to guard golden treasures. It makes perfect sense, since it would be rather difficult to find better guards. Everybody who watched The Hobbit series knows that this is true – the powerful Smaug hoarded a lot and was really obsessed with his shiny treasure. The Chinese dragon is also believed to hoard a lot of gold.
Friday, January 12, 2018
Mark O'Byrne - gold.ie
Gold Prices Rise To $1,326/oz as China U.S. Treasury Buying Report Creates Volatility
– Gold prices rise to $1,326/oz on concerns China may slow U.S. Treasury buying – Equities fell sharply on the report as did Treasurys and the U.S. dollar – Chinese officials think U.S. debt is becoming less attractive compared to other assets – Trade tensions could provide a reason to slow down or halt U.S. debt purchases – U.S. dollar vulnerable as China remains biggest buyer of U.S. sovereign debt – Currency wars to return as China rejects U.S. hegemony in Asia Gold prices in US dollar (Gold
Thursday, January 11, 2018
BullionStar - Bullion Star
Why does money inflate?
People who live in developed nations have grown used to inflation of around 2% a year over the last few decades. Why do prices generally rise by that amount? What drives the purchasing power of money in these countries? Why can’t prices stay constant year-over-year rather than increasing? To help answer some of these questions, let's go far back in time. We'll divide the last one thousand or so years into three monetary eras: the silver coin period, metal-backed notes, and fiat money. How would
Monday, January 8, 2018
Chris Powell - GATA
Dollar drop could force global central banks ...
A weaker dollar could be doing the work of global central banks. The greenback begins 2018 after its worst year since 2003, and analysts at Bank of New York Mellon Corp. and Credit Agricole SA say further declines could mean central banks don't have to tighten monetary policy as much as they may now be planning. The argument goes that by forcing up rival exchange rates, a decline in the U.S. currency could slow economic growth and inflation elsewhere, creating room for interest rates to stay low
Friday, January 5, 2018
Przemyslaw Radomski CFA - SunshineProfits
Three Key Takeaways from December 2017 FOMC Minutes for Gold
Yesterday, the minutes of the FOMC December meeting were released. What do they say about the Fed’s stance and what do they mean for the gold market? The Fed Is Divided over Number of Hikes in 2018 At the December meeting, the U.S. central bank increased the federal funds rate by a quarter percentage point to a range 1.25-1.50 percent. The move was widely expected by investors, but there was no unanimity at the meeting as two FOMC members dissented. The Fed officials were also divided over the f
Friday, January 5, 2018
Alasdair Macleod - Finance and Eco.
How quickly will the dollar collapse? 
This might seem a frivolous question, while the dollar still retains its might, and is universally accepted in preference to other, less stable fiat currencies. However, it is becoming clear, at least to independent monetary observers, that in 2018 the dollar’s primacy will be challenged by the yuan as the pricing medium for energy and other key industrial commodities. After all, the dollar’s role as the legacy trade medium is no longer appropriate, given that China’s trade is now driving the gl
Thursday, January 4, 2018
Michael Ballanger
2018: The Year of Living Dangerously
There is one redeeming benefit to writing "forecasts": they invariably and inevitably reduce you to a quivering mass of humility as the hubris born of luck and circumstance is replaced with the reality of randomness. I have been reading research reports for years and the most useful portions are those where an analyst goes back and reviews his/her reasons for owning something, and then a year later explains why it was flawed. Interestingly, it is uncanny how random events otherwise known as "b
Thursday, January 4, 2018
Frank Shostak
Is Inflation Driven more by "Expectations" than by the Money Supply?
For most economic commentators the underlying driving force of inflation is inflationary expectations1. For instance, if there is a sharp increase in the price of oil, individuals may form higher inflationary expectations that could set in motion spiraling price inflation. Or so it is held.If expectations could somehow be made less responsive to various price shocks, then over time this would mitigate the effect of a price shock on price inflation, it is argued. Once we accept that inflation exp
Wednesday, January 3, 2018
Przemyslaw Radomski CFA - SunshineProfits
Gold Market Themes for 2018
2018 has just begun. What will a new year bring for the gold market? Macroeconomic Outlook Will Remain Unpleasant The current economic expansion is surprisingly durable, as it has already lasted more than 100 months. It worries many investors who are afraid of the upcoming recessions. Surely, there are many reasons to worry, and the recession will eventually come. But we are not at this point yet. The current expansion is unusually long, but it is exceptionally sluggish. This year we expect that
Tuesday, January 2, 2018
Rory Hall - The Daily coin
A Golden Anchor for the Dollar
Dr Warren Coats, former Chief of the SDR with the title Assistant Director of the Monetary and Financial Systems Department at the IMF penned an article on a return to the gold standard in 2013 – A Hard Anchor for the Dollar. Not a classic gold standard, but an “updated version” of a gold standard that would allow for entities like the IMF, World Bank and BIS to stay involved and be part of the global banking system. This would allow these global banks to continue dictating monetary policy and c
Tuesday, January 2, 2018
Mark O'Byrne - gold.ie
UK Stagflation Risk As Inflation Hits 3.1 and House Prices Fall
– UK inflation hits 3.1%, highest in nearly six years– UK earnings flat – households are still suffering falling real wages– Stagflation risk as food and drink prices jumped 4.1% in 12 months– UK house prices fall two-months in a row, down 0.5% in October– Real stagflation risk now, inflation high and growth slowing– Savings continue to be eaten by inflation  It was just two years ago that Mark Carney was writing his fourth letter to the British Chancellor, explaining why the country was in a d
Tuesday, January 2, 2018
Mark O'Byrne - gold.ie
WGC: 2018 Set To Be A Positive Year For Price of Gold and Investors
– Gold expected to build on 2017 gains into 2018 despite headwind conditions– Gold has gained more than 9% in the year-to-date– Monetary policy and policymakers will continue to be “significant drivers of gold demand”– Physical and structural market changes will support gold into 2018– Goldcore has been at forefront of reporting on major developments in gold market and price Gold’s had a tough year. This isn’t in reference to price. After all, it has made double-digit gains in some currencies a
Monday, January 1, 2018
Mark O'Byrne - gold.ie
Year-end Rate Hike Once Again Proves To Be Launchpad For Gold Price
Year-end rate hike once again proves to be launchpad for gold price – FOMC follows through on much anticipated rate-hike of 0.25%– Spot gold responds by heading for biggest gain in three weeks, rising by over 1%– Final meeting for Federal Reserve Chair Janet Yellen– Yellen does not expect Trump’s tax-cut package to result in significant, strong growth for US economy– No concern for bitcoin which ‘plays a very small role in the payment system’ There were few surprises yesterday when the Federal
Sunday, December 31, 2017
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