Jerome Powell Market volatility has suddenly spiked in recent days came after the Federal Reserve vowed last Wednesday to keep its benchmark rate near zero through 2022. That’s an unusually long period for the Fed to be projecting rate policy. It reflects the fact that it will take many months and perhaps years for the tens of millions of jobs that were recently lost to return. During his press conference, Chairman Powell stumbled and stammered his way into stating that he would be happy to let inflation continue to rise until the economy approaches full employment. Jerome Powell: We’d be looking to get inflation back up and we’d be prepared to tolerate, uh, pretty low, welcome in fact, not tolerate, but welcome very low readings on unemployment, just based on
Topics:
Mike Gleason considers the following as important: 6a) Gold & Bitcoin, 6a.) Gold Standard, Featured, Jerome Powell, newsletter
This could be interesting, too:
Frank Shostak writes Assumptions in Economics and in the Real World
Conor Sanderson writes The Betrayal of Free Speech: Elon Musk Buckles to Government Censorship, Again
Nachrichten Ticker - www.finanzen.ch writes Bitcoin erstmals über 80.000 US-Dollar
Nachrichten Ticker - www.finanzen.ch writes Kraken kündigt eigene Blockchain ‘Ink’ an – Neue Ära für den Krypto-Markt?
Jerome Powell
Market volatility has suddenly spiked in recent days came after the Federal Reserve vowed last Wednesday to keep its benchmark rate near zero through 2022.
That’s an unusually long period for the Fed to be projecting rate policy. It reflects the fact that it will take many months and perhaps years for the tens of millions of jobs that were recently lost to return.
During his press conference, Chairman Powell stumbled and stammered his way into stating that he would be happy to let inflation continue to rise until the economy approaches full employment.
Jerome Powell: We’d be looking to get inflation back up and we’d be prepared to tolerate, uh, pretty low, welcome in fact, not tolerate, but welcome very low readings on unemployment, just based on what we saw in the last, uh, in the last expansion. So, um, we’re not thinking about raising rates. We’re not even thinking about thinking about raising rates.
So, what we’re thinking about, is, providing, uh, support for this economy. We do think this is going to take some time. There are just a lot of people that are unemployed, and it seems quite likely that there’ll be a significant group, uh, at the end of, even after a lot of strong job growth, that’ll still be struggling to find jobs and we’ll still be providing strong accommodation for that.
As is often the case, the stock market initially reacted one way to the Fed only to have second thoughts after a deeper reading of the central bank’s policy stance. On the one hand, monetary planners are committed to being ultra-accommodative into 2022. On the other hand, they seem convinced that the recovery will be slow – and are likely worried about another devastating wave of coronavirus infections.
Some parts of the country are experiencing a rise in reported COVID-19 cases right now. However, that is due in large part to a massive increase in testing.
Alarmists had predicted a spike in deaths as a result of beaches and swimming pools reopening. But that does not appear to be happening.
When Georgia became the first state to reopen a few weeks ago in defiance of the federal government’s guidelines, the media warned it would be catastrophic. And yet Georgia seems to be faring no worse than states that remained locked down.
We will see in the days ahead if illegal protesting and rioting in major cities across the country translates into a surge in coronavirus hospitalizations.
The demonstrations which were initially sparked by outrage over police brutality are now taking on the character of a Maoist cultural revolution. The mob demands we all kneel before it in submission, issue ritualistic apologies for any transgressions against its orthodoxy, and demonstrate our commitment to the cultural revolution by agreeing that we need to erase our history in the name of progress.
A full-scale war on history is being waged on statues, monuments, street names, military bases, and even classic movies such as Gone with the Wind. The vandals want us to forget who and what came before us to make us who we are today.
Strangely, corporate America seems to be fully on board with this revolution and is providing hundreds of millions of dollars in funding for it. Big Business is going all-in for globalism and a digital future that breaks down traditional mom-and-pop business practices.
It’s in the interest of banks and tech giants to redirect people’s anger away from their own financial plight in this new economy. These companies together are worth trillions of dollars thanks in part to the unlimited digital printing press of the Federal Reserve and the lack of a sound money standard.
Of course, there was a time when U.S. currency explicitly stated it was redeemable in precious metal.
It’s a history most people today know little about. Those who were around as recently as 1963 may remember when paper dollars were also silver certificates – redeemable in silver coins.
Most politicians, bankers, and business titans today quite prefer digital dollars redeemable in nothing. They would prefer the public to not be tangibly connected to its history.
There is a war on cash and a war on history being waged in this country. They go hand in hand.
If politically incorrect historical landmarks aren’t allowed to exist, then the past can’t speak to us directly anymore. Every generation will want to apply some new politically correct filter for determining whose history can stand. Some historical figures will be demonized for their words and actions. Others will be dismissed as no longer relevant, their ideas obsolete for modern times.
Similar attacks were launched on gold and silver to shift America’s monetary system to a purely fiat one. Gold is outmoded, they said. It’s been rendered useless in the modern economy. It’s a “barbarous relic”…and so on.
This is what central bankers and their ideological allies want us to believe. But if gold were truly obsolete as a monetary asset, then central banks would sell all their gold reserves. They certainly wouldn’t be buying.
But in recent years central banks have been accumulating gold in increasing quantities. And for good reason.
Gold’s history as money spans far longer than the timeline of any fiat currency. Gold’s history gives people confidence in its future as a store of value.
Yes, history still matters. Those who fail to learn its lessons will be caught completely unprepared when history repeats itself and the U.S. dollar plunges toward worthlessness – just like all the other fiat currencies that have come before it.
You Might Also Like
Global Silver Investment Demand To Surge While Supply Weak (World Silver Survey 2020)
◆ WORLD SILVER SURVEY 2020 from the SILVER INSTITUTE GLOBAL SILVER DEMAND EDGED HIGHER IN 2019, WITH INVESTMENT DEMAND UP 12%, WHILE SILVER MINE SUPPLY FELL FOR THE FOURTH CONSECUTIVE YEAR Global silver demand was pushed higher in 2019, with a 12 percent increase in investment demand as retail and institutional investors focused their attention on the long-term investment appeal of the white metal.
Monetary Metals Provides Gold Loan to Sector Resources
The loan is denominated in gold with interest and principal paid in gold. Scottsdale, Ariz., June 9, 2020—Monetary Metals® announced today that it has loaned gold to Sector Resources Canada Ltd., a British Columbia based gold mining company. The private transaction was conducted off-market, and the interest rate and terms were not disclosed.
A Dollar Crash Is Coming
◆The world is having serious doubts about the once widely accepted presumption of American exceptionalism. The era of the U.S. dollar’s “exorbitant privilege” as the world’s primary reserve currency is coming to an end. In the 1960s French Finance Minister Valery Giscard d’Estaing coined that phrase largely out of frustration, bemoaning a United States that drew freely on the rest of the world to support its overextended standard of living.
Why Gold Is Safe Haven Money And Will Go Over $3,000/oz
That’s a question I’m asked frequently. It’s usually followed by a comment along the lines of, “I don’t get it. It’s just a shiny rock. People dig it out of the ground and then put it back in the ground. What’s the point?”
Reject the “Next Generation EU Plan”
The Václav Klaus Institute urging the Czech Government to reject the dangerous Ursula von der Leyen´s plan. It is rather rare that I share articles on my channel that are not from my own pen. The following article is therefore an exception and for good reason. It is written by none other than the former President of the Czech Republic Václav Klaus, with whom I have a long-standing relationship, based on great respect and many shared values.
Technocracy vs Liberty
“I prefer true but imperfect knowledge, even if it leaves much undetermined and unpredictable, to a pretense of exact knowledge that is likely to be false.” Friedrich August von Hayek
Michael Flynn, Lori Loughlin, and the Permanent Culture of Prosecutorial Abuse
When US attorney general William Barr recently announced that the Department of Justice was reversing course and dropping all charges against former Trump adviser Michael Flynn, the response from Democrats, the mainstream news media, and Never-Trump Republicans such as David French was thermonuclear, to put it mildly.
The German Court’s Unexpected Blow to the ECB
A high German court recently ruled that the European Central Bank has overstepped the bounds of its power. The angry response from high-ranking European bureaucrats tells us a lot about what they want for the EU.
This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros.
Original Article: "The German Court’s Unexpected Blow to the ECB"
Tags: Featured,Jerome Powell,newsletter