04.09.2014 in Economy, Featured by NetRight Daily 23

Paying too much at the grocery store and at the pump? You can thank the Fed

By Robert Romano It is commonly said by Americans that the harder they work, the further they fall behind. Well, they’re right. Since 2000, household median income measured by the Census Bureau has only averaged 1.77 percent growth. In the meantime, the prices of staples like food and energy have been skyrocketing. Oil is up at an average annual rate […]

Canada shows how to fight radical green groups

A version of this article was originally published in Investors.com By Bill Wilson The global economy is an increasingly high-stakes battlefield, and governments large and small must determine daily when and how to enter that fray. Do they engage on the side of free markets and expanded individual liberties — promoting greater prosperity and freedom for all people? Or do […]

Will Janet Yellen stop printing $900 billion a year in 2014?

By Robert Romano In January, Janet Yellen will be easily confirmed to be the next head of the Federal Reserve. One question for the New Year that is certain to come up once every six weeks will be the Fed’s Open Market Committee, and specifically, whether there will be more tapering of the central bank’s purchase of $900 billion of […]

Stop the presses! Fed taper won’t stop its $75 billion a month money-printing

By Robert Romano Stop the presses! Instead of adding $1.02 trillion of treasuries and mortgage bonds to its balance sheet a year, the Federal Reserve has announced starting in January it will just be adding a “mere” $900 billion. For that, headline writers the world over are proclaiming that the long-sought-for recovery is finally at hand. The Washington Post editorial […]

No way out of Fed’s QE trap

By Robert Romano It took a little while, but the selloff of U.S. treasuries abroad has ceased for now in August and September — a record $127.4 billion was sold between March and July. It had marked the largest drop in foreign holdings of treasuries on record, detailed monthly Treasury data going back to the year 2000 reveals. Most of […]

Fed’s $1 trillion a year subsidy to banks to continue under Yellen’s watch

By Robert Romano With the filibuster against most presidential nominees now eliminated — well, sort of, Senate Democrats did not actually amend the rules, they just voted to pretend they don’t exist — the confirmation of Janet Yellen to be the next chair of the Federal Reserve is all but certain. Which is too bad. Of all nominees, blocking cloture […]

Former Fed official: ‘I’m sorry, America’

By Robert Romano Since August 2007 when the financial crisis began, the Federal Reserve has expanded its balance sheet by more than $3 trillion, including $1.35 trillion of U.S. treasuries and $1.43 trillion of mortgage-backed securities. It was “an unprecedented shopping spree,” says the former Fed official who headed up the program to buy the mortgage bonds in 2009, Andrew […]

10.30.2013 in Economy, Featured by Robert Romano 7

Dow hits new high, but is this just a paper boom?

By Robert Romano On Oct. 29, the Dow Jones Industrial average reached an all-time high. So, what has investors cheering? A manufacturing boom? More jobs? Lower taxes? None of the above. It was “expectations that the Federal Reserve will keep its economic stimulus program in place,” reports the Associated Press. But, that supposedly “temporary” central bank program of $85 billion […]

07.16.2013 in Economy, Featured by Robert Romano 0

Are lower interest rates on the horizon?

By Robert Romano You could almost see it coming. Predictably, after Federal Reserve Chairman Ben Bernanke announced on June 18 a potential 2014 sunset to the central bank’s quantitative easing program if and when unemployment hits 7 percent, 10-year treasuries jumped from 2.2 percent to about 2.56 percent. So it is with the Fed-addicted market. Because of the inverse relationship […]

06.27.2013 in Economy, Featured, Federal Reserve by Bill Wilson 1

Bernanke’s QE trap

By Bill Wilson $167 billion. That is how much extra the federal government will owe every year in gross interest payments for every point the interest rate on U.S. treasuries rises. That’s bad, because since Federal Reserve Chairman Ben Bernanke announced on June 18 a potential 2014 sunset to the central bank’s quantitative easing program, 10-year treasuries have jumped from […]

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