Stock Market May Have Peaked in Terms of Gold; Gerald Celente: Interest Rates Go Up, This Goes Down”

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason. Coming up the one and only Gerald Celente of the Trends Journal and one of the top trends forecaster in the world joins me for an explosive interview on the dollar, the growing tensions with North Korea and a wildcard that he sees driving a big run in gold. You will not want to miss an incredible interview with Gerald Celente, coming up after this week’s market update. Well, the invincible U.S. stock market finally came under some selling pressure this week as tensions between the United States and North […]

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Falling Interest Rates Have Postponed “Peak Oil”

Falling interest rates have huge power. My background is as an actuary, so I am very much aware of the great power of interest rates. But a lot of people are not aware of this power, including, I suspect, some of the people making today’s decisions to raise interest rates. Similar people want to sell securities now being held by the Federal Reserve and by other central banks. This would further ramp up interest rates. With high interest rates, practically nothing that is bought using credit is affordable. This is frightening. Another group of people who don’t understand the power […]

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Real Interest Rates STILL Negative after Fed Hike

Precious metals markets enter the last trading week before Christmas near multi-month lows. Gold and silver succumbed to another round of selling last Thursday following the Federal Reserve’s rate hike announcement. Bulls are hoping for a Santa Claus rally to take metals into year’s end on a positive note. Bears say “bah humbug” and will aim to keep the intense selling pressure on in the futures markets. The U.S. Dollar Index now trades at a 14-year high. It looks impressive – until you consider all the other currencies that trade against the dollar. Dollar “strength” is really just an expression […]

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After Raising Rates Once During The Obama Years, The Fed Promises Constant Rate Hikes During The Trump Era

Now that Donald Trump has won the election, the Federal Reserve has decided now would be a great time to start raising interest rates and slowing down the economy.  Over the past several decades, the U.S. economy has always slowed down whenever interest rates have been raised significantly, and on Wednesday the Federal Open Market Committee unanimously voted to raise rates by a quarter point.  Stocks immediately started falling, and by the end of the session it was their worst day since October 11th. The funny thing is that the Federal Reserve could have been raising rates all throughout 2016, […]

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We Are Being Set Up For Higher Interest Rates, A Major Recession And A Giant Stock Market Crash

Since Donald Trump’s victory on election night we have seen the worst bond crash in 15 years.  Global bond investors have seen trillions of dollars of wealth wiped out since November 8th, and analysts are warning of another tough week ahead.  The general consensus in the investing community is that a Trump administration will mean much higher inflation, and as a result investors are already starting to demand higher interest rates.  Unfortunately for all of us, history has shown that higher interest rates always cause an economic slowdown.  And this makes perfect sense, because economic activity naturally slows down when […]

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Polls Signal Trump Surge; Gold Strengthens; Celente: The Fed Is Lying about Rates

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason. Coming up we’ll hear from the one and only Gerald Celente of the Trends Journal and TrendsResearch.com. Gerald goes off on the Fed and the presidential reality show as he calls it in a highly entertaining interview and also gives us a look into how gold and silver will do after the election. You’ll definitely want to stick around for my conversation with Gerald Celente, coming up after this week’s market update. Well, we suggested there was the potential for volatility in markets to escalate this week, and that’s exactly […]

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Raising interest rates is not that simple, Lord Hague

The present period of very low interest rates is widely assumed to be temporary, a consequence of the 2008 financial crisis and subsequent central bank action. Because of this, as the financial crisis fades into the mists of time, there is growing political pressure for “normalisation” of interest rates. Here, for example, is William Hague warning that central banks must start to raise rates or face losing their independence: The only way out is for the US Fed to summon the courage to lead the way to higher interest rates, and others to follow slowly but surely. If they fail […]

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Negative rates and bank profitability

Banks are complaining. “Negative interest rates hurt our margins,” they moan. Here’s Commerzbank, for example, in its recent results announcement (my emphasis): Mittelstandsbank attained a solid result in a challenging market environment. The operating profit declined in the 2015 financial year to EUR 1,062 million (2014: EUR 1,224 million), yet remains at a high level. The fourth quarter accounted for EUR 212 million (Q4 2014: EUR 251 million). The full year revenues before loan loss provisions declined to EUR 2.7 billion (2014: EUR 2.9 billion). This development is due in particular to the downturn in deposit transactions, which was driven […]

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Can the Fed Drop Interest Rates Below 0%?

For the financial markets, the biggest event of the week starts tomorrow: On Wednesday and Thursday (Feb. 10-11) Fed chair Janet Yellen will appear before Congress to deliver her semi-annual Monetary Policy Report. “It’s huge.” That’s how one strategist put it this morning, in a CNBC interview about the importance of Yellen’s testimony. Why are all eyes on Yellen? Maybe because by now, almost everyone has forgotten how powerless the Fed appeared in 2007-2009, when none of its measures could stop the financial crisis. Despite the recent market chaos, six years of rising stock prices reaffirmed the notion that the […]

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Negative Interest Rates Are the Next Stage in Global Stimulus

Since late 2008, central banks around the world have used unprecedented QE to try and stoke the global economy. Then in June 2014, the ECB took it a step further. They went negative. Zero short-term interest rates apparently weren’t enough. The ECB realized that if they couldn’t get banks to loan or consumers to spend, why not really light a fire under their ass and tell them: “if you’re not going to spend, you have to pay to keep your money in the bank!” The Swiss thought this was a great idea and did the same in December 2014. Later […]

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