Federal Reserve: Unwinding The Balance Sheet

The balance sheet is still north of four trillion so they've tapered it a little bit ,I think a couple hundred billion. Interest rates are rising and the Federal Reserve still has an enormous balance sheet and according to what they've been saying they're about to start increasing the monthly draw and and that is gonna put even more pressure on the bond market especially since we are printing record budget deficits.

We're now borrowing over a hundred billion a month and the official numbers don't even capture that because so much of the budget is off budget. But it doesn't matter, they still have to issue the bonds to finance the off budget spending.

So what's important is how much the national debt is going up, how much bonds are actually being sold and so we've got record budget deficits and now we've got the Federal Reserve that wants to sell and the bigger problem is who's buying?

The Next Round Of QE Will Send Gold To New All-Time Highs

Everybody thinks quantitative easing is over what they don't realize is it's barely begun the next round is gonna be bigger than the first three and that's really what's gonna send gold to new highs.

Related trading tickers:

• SPDR Gold Trust ETF (GLD)
• Market Vectors Gold Miners ETF (GDX), 
• Market Vectors Junior Gold Miners ETF (GDXJ)
• Newmont Mining (NEM)
• Barrick Gold (ABX)
• Kinross Gold Corporation (USA) (NYSE:KGC)

Why Investors Are Wrong About Gold

Gold has really been an asset that has been under owned for many years. I think you have too many people that are convinced that the central banks know what they're doing and that they've solved all of our problems and that there's no inflation, that there's nothing to worry about and therefore there's no reason to own gold. Gold is just a piece of metal and why own it right, it doesn't throw off any income? But of course people are completely wrong.

Stock Market: This Is A Bubble Deflating

Peter Schiff comments on the current situation in the US stock market.

This Is A Bear Market

I've been calling for a bear market and I think this is a bear market and if we get a rally that will be the correction because the primary trend is now down. This is early in this bear market, it's very young and unfortunately it's going to be very long-lived.

I think this is going to be similar if not worse than the bear market that went from 1966 to 1982. It took 16 years for the Dow to make a new high and during that time period inflation took about 70 percent away from the Dow's value. This time I think it's going to be worse.

Apple (AAPL) Now in a Bear Market

"But there was some other particularly bad news that came in before the opening bell, and that one was from Apple (AAPL). They said they will be cutting production because of lower sales. That decision trickles down, effecting a lot of companies who count on those orders from Apple (AAPL). The price of Apple (AAPL) is down by 4% on the day. But if you now look at the total drop - just over 20% - and that means the way Wall Street scores it, Apple is now in a bear market." 

- excerpt from the Peter Schiff Show, Episode 415, The Confidence Bubble Has Popped