- Today the world of banking and finance waited with baited breath for the Federal Reserve in the United States to hike… or not to hike… interest rates.
- This happens several times each year as the central bank’s Federal Open Market Committee gathers to set monetary policy in the Land of the Free.
- To be clear, there is no greater power over a nation than having control of its money supply and interest rates.
- Think about it: interest rates influence just about EVERYTHING in the economy.
- Changes in interest rates influence housing prices, company stock prices, retail sales, food prices, oil prices, and major business purchases.
- Interest rates have a significant impact over employment, business investment, inflation, and the currency’s international exchange rate.
Read more at:Just a quick reminder of who’s really in charge
- There has been a tremendous amount of talk about the spending deal that was just reached in Congress. Most of the focus has been on who “won” and who “lost” politically, and if you have been keeping up with my articles you definitely know my opinion on the matter. But what nobody is really talking about is that this deal actually increases spending at a time when our debt has been absolutely exploding.
- We added more than a trillion dollars a year to the U.S. national debt during Obama’s eight years in the White House, and our debt binge actually accelerated toward the end of his second term. In fact, the national debt increased by more than 1.4 trillion dollars during fiscal 2016…
- In fiscal 2016, which ended on Friday, the federal debt increased $1,422,827,047,452.46, according to data released today by the U.S. Treasury.
Read more at:Debt Insanity: Does Anyone In Washington Even Care That We Are 20 Trillion Dollars In Debt?
- One sector of the economy that is acting as if we were already in the middle of a horrible recession is the auto industry. We just got sales figures for the month of April, and every single major U.S. auto manufacturer missed their sales projections. And compared to one year ago, sales were way down across the entire industry. When you add this latest news to all of the other signals that the U.S. economy is slowly down substantially, a very disturbing picture begins to emerge. Either the U.S. economy is steamrolling toward a major slowdown, or this is one heck of a head fake.
- One analyst that has been waiting for auto sales to start declining is Graham Summers. According to Summers, the boom in auto sales that we witnessed in previous years was largely fueled by subprime lending, and now that subprime auto loan bubble is starting to burst…
- Auto-loan generation has gone absolutely vertical since 2009, rising an incredible 56% in seven years.
Read more at:U.S. Auto Sales Plunge Dramatically As The Consumer Debt Bubble Continues To Collapse
- Much to the likely chagrin of the mainstream media, and Democratic Party blame narratives everywhere, Politico reports that the leaders of the Senate Foreign Relations Committee have reached a decision that’s sure to disappoint Russia hawks: They’re not taking up a Russia sanctions bill anytime soon.
- “We’re not going to do a Russia sanctions bill,” Corker told POLITICO on Monday.
- Instead, Committee Chairman Bob Corker of Tennessee and ranking Democrat Ben Cardin of Maryland have agreed to move forward on a measure to counter Russian influence in Eastern Europe without using sanctions as well as an Iran sanctions bill.
- “The ranking member and I are in strong agreement on a pathway forward and that’s what we’re going to do. We’re going to do an Iran sanctions bill.
Read more at:Senate Quietly Drops Russian Sanctions Bill, Focuses On Iran Crackdown
- It’s an unfortunate historical anomaly that people think about the paper in their wallets as money. The dollar is, technically, a currency. A currency is a government substitute for money. But gold is money.
- Now, why do I say that?
- Historically, many things have been used as money. Cattle have been used as money in many societies, including Roman society. That’s where we get the word “pecuniary” from: the Latin word for a single head of cattle is pecus.
- Salt has been used as money, also in ancient Rome, and that’s where the word “salary” comes from; the Latin for salt is sal (or salis). The North American Indians used seashells.
- Cigarettes were used during WWII. So, money is simply a medium of exchange and a store of value
Read more at:Doug Casey On Why Gold Is Money
- Update: Senate Democratic Leader Chuck Schumer seems very positive on the bipartisan agreement too (but can’t resist a few jabs at President Trump)…
- “This agreement is a good agreement for the American people, and takes the threat of a government shutdown off the table.
- The Bill “ensures taxpayer dollars aren’t used to fund an ineffective border wall, excludes poison pill riders, and increases investments in programs that the middle-class relies on, like medical research, education, and infrastructure”
- “Early on in this debate, Democrats clearly laid out our principles..” and the deal “reflects those principles.”
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- As we detailed eariler, one of the biggest political overhangs facing the market may have just been removed, when moments ago AP and other newswires reported that House Democrats and Republicans are said to have reached a $1 trillion spending deal to keep the government – which is currently operating thanks to a last minute one-week stopgap measure enacted on Friday – open until October 1.
Read more at:Congress Reaches Deal To Keep Government Open Through September