The Fed Never Calls The Bubble A Bubble... Why Not?

The Federal Reserve, by manipulating interest rates and creating money out-of-thin air, produces economic bubbles that must always end in painful economic busts. 

Have you ever noticed that Fed officials never actually acknowledge any of this? They never warn Americans ahead of time and everyone acts surprised when it all comes down.

- Source, Ron Paul

Central Banks Know The Dollar's Deteriorating

Today's guest, David Moadel, joins us to share his thoughts on the financial markets, the United States - China trade war and the importance of thinking about alternative approaches to investing.

- Source, Silver Doctors

Judy Shelton, Trump's Next Fed Choice, Favors a Gold Standard and Free Trade

Economist Judy Shelton, a Trump economic advisor and a gold standard advocate is rumored to be Trump's next Fed pick.

Bloomberg reports White House Considers Economist Judy Shelton for Fed Board

"The White House is considering conservative economist Judy Shelton to fill one of the two vacancies on the Federal Reserve Board of Governors that President Donald Trump has struggled to fill.

She’s currently U.S. executive director for the European Bank for Reconstruction and Development, and previously worked for the Sound Money Project, which was founded to promote awareness about monetary stability and financial privacy."

Case for Monetary Regime Change

On April 21, Judy Shelton had an ope-ed in the Wall Street Journal: The Case for Monetary Regime Change.

"Since President Trump announced his intention to nominate Herman Cain and Stephen Moore to serve on the Federal Reserve’s board of governors, mainstream commentators have made a point of dismissing anyone sympathetic to a gold standard as crankish or unqualified.

But it is wholly legitimate, and entirely prudent, to question the infallibility of the Federal Reserve in calibrating the money supply to the needs of the economy. No other government institution had more influence over the creation of money and credit in the lead-up to the devastating 2008 global meltdown. And the Fed’s response to the meltdown may have exacerbated the damage by lowering the incentive for banks to fund private-sector growth.

What began as an emergency decision in the wake of the financial crisis to pay interest to commercial banks on excess reserves has become the Fed’s main mechanism for conducting monetary policy. To raise interest rates, the Fed increases the rate it pays banks to keep their $1.5 trillion in excess reserves—eight times what is required—parked in accounts at Federal Reserve district banks. Rewarding banks for holding excess reserves in sterile depository accounts at the Fed rather than making loans to the public does not help create business or spur job creation.

Meanwhile, for all the talk of a “rules-based” system for international trade, there are no rules when it comes to ensuring a level monetary playing field. The classical gold standard established an international benchmark for currency values, consistent with free-trade principles. Today’s arrangements permit governments to manipulate their currencies to gain an export advantage.

Money is meant to serve as a reliable unit of account and store of value across borders and through time. It’s entirely reasonable to ask whether this might be better assured by linking the supply of money and credit to gold or some other reference point as opposed to relying on the judgment of a dozen or so monetary officials meeting eight times a year to set interest rates. A linked system could allow currency convertibility by individuals (as under a gold standard) or foreign central banks (as under Bretton Woods). Either way, it could redress inflationary pressures."

I just ordered the book to have a better idea where she is coming from.

Regardless, I am certain she would have been a better choice for Fed chair than Powell, Bernanke, Yellen, or Greenspan.

Bubbles of Increasing Amplitude

Shelton concluded "Central bankers, and their defenders, have proven less than omniscient."

Indeed.

The judgement of the Fed has produced three consecutive bubbles, each bigger than the one before it. The only reason the latest bubble is not acknowledged yet is that it hasn't yet burst.

It's not clear precisely what Shelton has in mind but at least she is headed in the right direction. What's clear is Trump is fighting the wrong battle when it comes to trade.

Tariffs will not fix the alleged problems of currency manipulation. A gold standard would.

- Source, Mish Shedlock

Ron Paul: Who Knows What Evil Lurks In The Pentagon Budget?

Trillions of dollars in Pentagon spending have just disappeared into thin air. The Pentagon failed its first ever audit last year. There is so much off-the-books spending that no one has a clue where it's going. US troops show up in Niger and Congress has no idea how they got there. Is the Pentagon and the military-industrial complex a government unto itself?

- Source, Ron Paul

What Your Broker Won't Tell You...

Tony Greer, founder of TG Macro, sits down with Jared Dillian, author of a market newsletter called “The Daily Dirtnap.” Greer and Dillian discuss monetary policy, portfolio construction and the dirty little secret your broker won’t tell you. Dillian also sheds light on his shifting focus from institutions to retail investors.

- Source, Real Vision

Ron Paul: Is Trump Watching The Liberty Report?

According to a new Washington Post article, President Trump is frustrated with his national security advisor, John Bolton for promising the Venezuela regime change would be a cakewalk. 

He's concerned about being boxed into a corner, says an anonymous source. We know the president loves Fox... but is he also watching the Liberty Report?

- Source, Ron Paul

Michael Pento: Epic and Massive Crash in Asset Prices Coming

What will knock this market back to reality? Money manager Michael Pento says, “You will eventually get a recession or eventually you will get inflation. 

You might just get both. You might just get a huge case of stagflation to hit this country and around the world. That’s what I am most afraid of.” In closing, Pento warns, “Japan has no growth. There is no growth in Germany. 

There is no growth in Italy. We have an earnings recession here in the United States. So, what you have engendered here is most likely a protracted period of stagflation, which is going to lead to an epic and massive crash in asset prices. That’s what you have at your feet, so be careful.”

- Source, USA Watchdog

John Williams: The Economy is Tanking, The Real Numbers Don't Lie

If rate cuts don’t happen soon, is the economy going to tank? Economist John Williams says, “The economy is tanking, and I’ll contend it already has, although we have not seen it in the GDP reporting.

The ultimate thing here is you have a collapse in the dollar. I am talking about a hyperinflationary collapse. 

Your purchasing power becomes worthless. What you have in gold or canned goods or real estate, that will be your assets – hard assets.”

- Source, USA Watchdog

Central Bank Insanity! Japanese Central Bank Owns Nearly Every ETF and Most Stocks

How Can We Thrive Against ZIRP and NIRP?

David McAlvany, President of the McAlvany Financial Companies, talks about the Fed’s policies and if they may be heading toward a Zero Interest Rate Policy.

- Source, Jay Taylor Media

The Real Reason Silver Has Been Underperforming...

A strong headline GDP release last Friday may bode well for silver demand, said Will Rhind, CEO of GraniteShares. 

Rhind said that one reason silver has not performed well is due to China’s lower than expected demand, but with GDP numbers showing strength in the U.S. economy, this trend may reverse course. 

“Part of the reason why silver hadn’t really been doing much is that we expected China to ease and that would be positive for the silver market in terms of stimulating demand, but of course that has slightly changed a little bit with China [focusing] more on reforms rather than outright easing,” Rhind told Kitco News.

- Source, Kitco News

Unemployment: Record Low. Homelessness: Record High. Something's Fishy

The economy is booming, we are told. Unemployment is nearly non-existent! Jobs for everyone! 

But at the same time homelessness is on the rise, leading several major US cities to declare an emergency over the problem. 

Why the discrepancy? Are government stats wrong?

- Source, Ron Paul