All posts in " Interest Rates "

Interest Rates Up & Bonds Up?

By admin / May 26, 2017

While the Fed may be raising rates, there is still a flight to quality underway that is giving a bid to US Treasury issues. Low Treasury yields may remain the norm even if the Federal Reserve raises rates again. At about 2.25%, 10-year yields have dropped to 2017 lows, even with the central bank signaling an […]


New Argument to Raise Rates – Rent Inflation!

By admin / May 24, 2017

There are those in the Fed who are desperate to find an excuse to raise interest rates. The one being bantered about is the Fed needs to raise rates to help the poor. Yes – you heard correctly. To protect the poorest Americans, the argument is that the Fed needs to raise interest rates faster […]


The End of Quantitative Easing – Perhaps Now It Will Be Inflationary?

By admin / April 20, 2017

One of the greatest monetary experiments in financial history has been the global central bank buying of government debt. This has been touted as a form of “money printing” that was supposed to produce hyperinflation, which never materialized as predicted by the perpetual pessimists. Nevertheless, the total amount of Quantitative Easing (QE) adding up the […]


The Fed Raises Interest Rates & Markets Rally!

By admin / March 16, 2017

The stock market, gold, silver, and oil all rallied when the Federal Reserve delivered the widely expected increase in its benchmark interest rate on Wednesday, the Ides of March. It said that the domestic economy remained on a path of slow and steady growth. In a statement the Fed said that the United States economy […]


Fed & Interest Rates

By admin / March 15, 2017

James Bullard, president of the St. Louis Fed, in a March 3, 2017 interview with the Wall Street Journal, “The recent data aren’t that different from what they were at the time of the January meeting and we didn’t really use the January meeting to set up a March rate hike.” He also offered an important response to […]


The Future – Putting it All Together

By admin / March 11, 2017

This is the year of political hell. The question is not about supporting one side or the other. This is a time that calls for us not to be small petty creatures but a case that requires rational human beings, which seems to be more impossible with each passing day. Never did there arise a […]


Why the Fed Needs to Raise Rates

By admin / March 3, 2017

I have warned that rates will rise BECAUSE the Federal Reserve will be criticized if they fail to do so when they are faced with a stock market that is rising. However, while one by one, several Fed officials have all signaled in recent days that the Fed is ready to resume raising interest rates […]


The Coming Crisis in Central Banking

By admin / February 2, 2017

  The question of when will central banks fail is a popular one that comes in. Suffice it to say, the turmoil will hit Europe first. While so many people blame the Fed for all sorts of things, you must realize that Roosevelt usurped the Fed during the Great Depression and imposed a single interest […]


Rogoff: An Elitist Who Has No Respect for the People

By admin / January 18, 2017

Kenneth Rogoff is a Professor of Public Policy and Economics at Harvard University. Rogoff calls critics of negative interest rates “ignorant” despite the fact that negative interest rates have been used since 2008 without any success. He had the audacity to say that people should not look at their short-term personal losses, but rather look at the long-term vision […]


Bonds v Shares

By admin / January 12, 2017

QUESTION: Dear Mr. Armstrong As a long time reader I rarely see you mention the possible long term benefits of also holding corporate bonds. I understand the obvious down side to government bonds and the reason for stocks to move higher, but since bond holders get paid before stock holders when things go bad would […]

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