Federal Reserve

Created in 1913 with the enactment of the Federal Reserve Act, the Federal Reserve (the Fed) is the central banking system of the U.S. The Fed functions as the bank of the U.S. government, overseeing the nation’s financial institutions. As the central bank, the Fed safeguards and manages the U.S. economy and its money supply with its economic and monetary policies, which makes it a very powerful global player. Ben Bernanke is the current chairman of the Federal Reserve.

Two Major Concerns About Overvalued Stock Market Prices

By Monday, November 17, 2014

Stock Market 60 OvervaluedThe amount of money investors are borrowing to buy stocks is skyrocketing.

In September of this year, margin debt on the New York Stock Exchange (NYSE) stood at $483.87 billion—a new record-high. When the stock market was forming a top in 2007, margin debt was at a “then” record-high of $329.51 billion. Margin debt on the NYSE is … Read More

Prices of Gold/Silver Companies to Double from Here?

By Monday, November 10, 2014

Prices of Gold and Silver Companies to DoubleSilver is down 70% from its high of $48.70 an ounce back in April of 2011. And the calls from the mainstream are for silver prices to fall farther, as the Federal Reserve has stopped printing paper money and inflation is nowhere in sight. I beg to differ.

As the price of one ounce of silver reaches a four-year low, investors are running to bu… Read More

Money Supply Strongly Suggests Higher Inflation Ahead

By Friday, November 7, 2014

Money Supply Strongly Suggests Higher Inflation AheadAsk even an amateur economist, and they will tell you this: an increasing money supply eventually leads to inflation. It’s a simple concept; the more paper money there is in the system, the less it’s worth and the less it buys.

And this is exactly what is happening in the U.S. economy. The money supply is growing at a fast rate when com… Read More

How Markets Will Handle End of Money Printing Era

By Wednesday, November 5, 2014

Markets Will Handle End of Money Printing EraIt’s finally over…

The quantitative easing programs initially started by the Federal Reserve six years ago are (for now) history.

In its statement on October 29, the Federal Reserve said, “Accordingly, the Committee decided to conclude its asset purchase program this month.” (Source: “FOMC Statement,” Federal Res… Read More

These Poor 3Q Earnings Reports Foretell 2015’s Economy

By Friday, October 31, 2014

Poor 3Q Earnings Reports Foretell 2015’s EconomyAccording to research by UC Berkeley, in 2012, the top one percent of income earners in the U.S. earned 22.5% of all the income. The bottom 90%, on the other hand, earned less than 50% of all the income. (Source: Pew Research Center, January 7, 2014.) Income inequality in the U.S. economy is the highest it has been since 1928. The rich are g… Read More