The Federal Reserve Is Creating Dollars To Buy Bonds

The only way the Federal Reserve can suppress interest rates is by creating dollars to buy bonds. The more dollars it creates the more value the dollar loses, and the faster consumer prices rise. That puts upward pressure on rates so the Federal Reserve must create even more dollars to keep rates low.

Buy Your Gold Before Too Many Figure It Out

It looks like the Fed's 2 percent inflation target, which started out as a ceiling, is about to officially become a floor. The irony is that the actual inflation rate will be so far above 2 percent that we may never step foot on that floor again. Buy your gold before too many figure this out.

The Next Crisis Will Be A Dollar Crisis

The U.S. dollar's decline is welcomed as good news. Many were concerned that a strengthening dollar risked domestic deflation, hurt U.S. exports, lowered corporate earnings, and threatened emerging markets. Cheers will soon turn to tears as a dollar crash becomes the next crisis.

How Will Stocks Fare Under Biden?

If you think U.S. stocks can do well under Biden as they did well under Obama, think again. When Obama took office stocks were ending a decade long bear market, with the NASDAQ down 70 percent. It's since soared 7-fold. The economy is far worse now and the Federal Reserve can't blow another bubble.

The Role Of A Central Bank

We don't want a Central Bank that helps the Federal Government go deeper into debt. We want a central bank that forces Congress to cut spending or suffer the adverse consequences of rising interest rates and recession if it fails to do so.

An easy way to tell how bad a job Powell is doing as Fed Chair is that every member of Congress is praises him and thanking him for his help. We need a Fed Chair with the courage to do what's right for the country even if it's unpopular with Congress and the public at the time.

Bitcoin, Gold and Inflation

While Goldman Sachs is correct to warn its clients to avoid Bitcoin, its assessment of the U.S. economy, the U.S. Dollar and inflation is wrong. But once they finally figure out what should already be obvious, they will advise their clients to buy gold, just at much higher prices.