STOCKS OR GOLD IN THE 1970s? pic.twitter.com/3VWo6IWUE0
— Win Smart, CFA (@WinfieldSmart) September 10, 2020
Long-term US market-based inflation expectations are back at pre-crisis levels.
— Win Smart, CFA (@WinfieldSmart) September 10, 2020
The Fed’s New Policy Risks a Return of the 1970s
On August 27, the Federal Reserve released an important revision to its monetary policy strategy, replacing 2 percent price inflation targeting—initially adopted in 2012—with a new approach in which the Fed will target an average inflation rate instead.
The Fed Promises More Dollar Destruction
If you thought the 2007–09 response by Bernanke & his Fed System was extraordinary, you have not been paying attention to what is currently happening under Powell’s watch. A zero interest rate policy, unlimited asset buying, Wall Street bailouts, & now guaranteed inflation. This is a never-ending monetary accommodation that leaves you asking:…
There’s a ‘Real Danger’ of China Developing Separate Finance Systems From the Rest of the World
“There is a real danger of China and … much of the rest of the world developing separate financial systems for things like payments of international debts and payments for trade,” he said.