Peter's Blog

The Federal Reserve Is a Money-Making Enterprise

The Federal Reserve is a money-making enterprise. This probably shouldn’t come as any surprise, given that the central bank can create money out of thin air and buy yielding assets. Still, the Fed rakes in a staggering amount of money. The central bank recently released its unaudited preliminary financial statement for 2021.

Consumer Sentiment at 10-Year Low

Joe Biden is telling us the economy is back on track. And the Federal Reserve insists it can slow down the inflation freight train. But the average American isn’t quite so sanguine. Consumer sentiment plunged to the second-lowest level in a decade in January, according to the University of Michigan Surveys of Consumers.

Could Gold Shine in 2022 Despite the Fed’s Proposed Inflation Fight?

Despite an inflationary freight train, gold struggled to gain ground in 2021 as the markets fixated on the Federal Reserve and the possibility of tighter monetary policy to fight inflation. Will gold continue to fight headwinds in 2022 as the Fed launches its “inflation fight,” raises rates and possibly begins to shrink its balance sheet? […]

Despite Record Receipts Uncle Sam Still Ran a Budget Deficit in December

Despite a monthly record in receipts to the US Treasury, the federal government still managed to run a deficit in December. That’s because the federal government also broke a monthly spending record.

Heads You Lose; Tails You Lose

The Fed has a difficult choice to make. Will it crash the economy? Or will it crash the dollar? Whichever way this coin flip turns out — you lose.

2021 Silver Demand Expected to Break Record and Other Silver News

Silver demand is expected to chart a new record high in 2021 with every key area showing an increase based on preliminary data. This is one of several silver-related stories covered in the latest edition of Silver News published by the Silver Institute.

Could Gold Help Us Find Space Aliens?

Gold may be the key to finding space aliens! After years of development, the James Webb Space Telescope (JWST) was launched into space on Christmas day.

Biden Signs Massive Military Spending Bill – How Will They Pay for It?

President Joe Biden’s “build back better” spending bill seems to be dead — at least for the time being. But there is still plenty of spending coming down the pike. This raises an important question: how is the Federal Reserve going to simultaneously taper its bond-buying program and monetize all of this debt? On Monday, […]

Inflation Is Eating Up Your Paycheck: Real Incomes Fall for Fourth Straight Month

I’ve got good news and bad news. The good news is you probably put a little more money in your pocket in November. The bad news is inflation ate up all your income gains and then some. Real personal incomes fell 0.2% in November despite a healthy gain in nominal income.

Looser Monetary Policy in China Could Further Boost Chinese Gold Demand

While the Federal Reserve talks about tightening monetary policy, the Chinese central bank is heading in the opposite direction. This could boost gold demand in that country even further. Earlier this month, the People’s Bank of China announced a 0.5% cut in financial institutions’ required reserve ratio (RRR). According to the World Gold Council, this move […]