Fed Loses Control Over Interest Rates

May 22 2019

Recently, the Fed decided to pause its interest rate hikes. The Fed funds rate, in this case. Better yet, the Fed decided to … lower the – from my perspective – most important policy rate! As soon as you read this article and understand why the Fed actually lowered rates, you will also understand why the Fed is losing its control over interbank interest rates.

... »

Olav Dirkmaat

Gold Heads Lower While Yield Curve Inverts

April 3 2019

Since quite a while ago, I have been anticipating this remarkable moment. The – for me – most important economic warning sign has turned red: the yield curve inverted and, as a consequence, short-term interest rates in the U.S. are now higher than long-term rates. All the while gold prices dropped by twenty dollars, close to a level of $1,290 per troy ounce. Motive? The dollar strengthened to €1.12 and came near a three-week high.... »

Olav Dirkmaat

Draghi Makes U-Turn in Monetary Policy; Euro Drops

March 15 2019

President of the European Central Bank (ECB), Mario Draghi, stunned financial markets last week by announcing a U-turn in the Eurozone’s monetary policy. Instead of a long-awaited rate hike, Mario Draghi announced on the contrary a new monetary stimulus package. The Italian, among other things,

... »

Olav Dirkmaat

U.S. Economic Growth Still Lagging; Gold Mining Sector Consolidating

March 8 2019

While the press euphorically announced that economic growth in the fourth quarter of last year was better than expected (because: 2.9% growth in 2018), post-crisis economic growth has been among the most disappointing in history. Now that we have an estimate for the fourth quarter, the sad but true conclusion must be that the U.S. is setting an extremely upsetting record: 13 years in a row with annual GDP growth below 3%. All this despite Trump’s election promise to grow the U.S. economy at a faster rate than 3%.

... »

Olav Dirkmaat

1 | 2 | ... | 46