If the Fed wades further into muddy stimulus waters, that will set the stage for a certain gold boom in the short to medium term. Historically, a dollar sell-off has been the biggest force behind a gold boom. If the Fed takes recourse to another round of easing in pursuit of its goal of propping up job creation and real growth, it will inadvertently cause a dollar sell-off and trigger, in turn, a gold super rally.
The setting is perfect for another gold boom cycle to kick in, perhaps pushing the yellow metal into a super cycle. There are several factors aiding gold's further push into higher price records, greater investment worth and long-term reign as a de facto currency. There are all sorts of classic factors supporting gold all the way, like the demand from China and India bursting at seams, continued worries for the US dollar and the worrisome prospect of sovereign default in some European countri...
The US economy is at an inflection point after the end of the second round of Quantitative Easing (QE2). Two rounds of monetary and fiscal stimulus since 2008 have had only limited impact on growth or unemployment. The question is,'What next?' will there be another round of monetary and fiscal policy easing? Analysts at American Enterprise Institute for Public Policy Research (AEI) are of the opinion that fiscal and monetary policies have reached their limits.
Credit ratings agency S&P Friday, like Moody's Thursday, warned that the U.S.'s credit rating could be downgraded, if an agreement on raising the debt ceiling is not reached soon. Meanwhile, the Reid/McConnell 'last chance' debt deal plan appeared to gain momentum Thursday, raising hope that a debt deal agreement will be reached soon.
China Thursday called on the United States to adopt responsible policies and measures to guarantee the interests of investors -- a communique that highlights the rising concern about a possible U.S. Government default. Meanwhile, modest debt talk progress was noted on Day 5, with bipartisan agreement on at least $1.5 trillion in spending cuts over 10 years.
The following are highlights of Federal Reserve Chairman Ben Bernanke's testimony on Thursday to the Senate Banking Committee as part of his semiannual testimony on the U.S. economy and monetary policy. Bernanke repeated prepared testimony he delivered to a House of Representatives panel on Wednesday.
Longtime Federal Reserve antagonist U.S. Rep. Ron Paul, R-Texas, was at it again on Wednesday, criticizing Federal Reserve Chairman Ben Bernanke, the head of world's most powerful central bank, for a faltering economic recovery and suggested the country would be better off investing in gold.
Former Gov. Sarah Palin, R-Alaska, redeployed her controversial gunplay rhetoric Wednesday, saying conservatives should not compromise and agree to raise the U.S. debt ceiling. Palin also said she isn't convinced that a U.S. Government default would be a calamity.
Federal Reserve Chairman Ben Bernanke renewed his promise on Thursday that the central bank could put more monetary stimulus into play if the economic recovery stumbles.
U.S. Federal Reserve Chairman Ben Bernanke said on Wednesday that the Fed was prepared to take action to reverse any slowdown in the economic recovery, including another round of quantitative easing.
Moody's Investors Service has placed the Aaa bond rating of the U.S. Government on review for a possible downgrade, due to the debt deal talks stalemate in Washington, and the possibility of a U.S. debt default, the credit rating agency announced. Fed Chairman Ben Bernanke also said a default would trigger a major crisis.
The following are highlights of Federal Reserve Chairman Ben Bernanke's prepared remarks on Wednesday to the House of Representatives Financial Services Committee as part of his semi-annual testimony on the U.S. economy and monetary policy.
Federal Reserve Chairman Ben Bernanke said on Wednesday the central bank is ready to ease monetary policy further if the economy weakens and inflation moves lower, suggesting policymakers are actively mulling further stimulus.
The following are highlights of Federal Reserve Chairman Ben Bernanke's prepared remarks on Wednesday to the House of Representatives Financial Services Committee as part of his semi-annual testimony on the U.S. economy and monetary policy.
Chairman Ben S. Bernanke's Semiannual Monetary Policy Report to the Congress Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C. July 13, 2011
Still doubt the good faith and credit of the U.S. Government? Consider this: in June, PIMCO's Bill Gross, the head of the world's largest bond fund, increased his holdings of U.S. Treasury bonds, commonly known as Treasuries.
The head of the world's most powerful central bank said Wednesday a third round of quantitative easing, QE3, may be up ahead, if the tepid U.S. economic recovery doesn't improve. However, Fed Chairman Ben Bernanke, in Congressional testimony, underscored that the Fed is also considering other options -- or a monetary tightening -- if the recovery gains strength.
Silver has lost its shine of late as fears of another global economic slowdown reduced its appeal as an industrial metal. Silver fell from the record prices it set a couple of months back to hover around $35 per ounce. However, optimists are speculating that silver will bounce back once again and cross the $100 record. There are even experts who fancy silver's price parity with gold!
Some Federal Reserve officials believe further monetary policy easing could be needed if the recovery remains too sluggish to cut the stubbornly high U.S. jobless rate and if inflation eases as expected, minutes of the Fed's last meeting show.
The Federal Reserve, in a push to control the often wayward communications of its top officials, issued detailed rules on Tuesday dictating what they can and cannot do.
Paul may be having his swan song just as his ideology is catching on
Former Fox News Talk Show Host Glenn Beck was warmly received by Israeli lawmakers during a visit to the Middle East nation.
