Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on the Jerome Powell Appointment as the new Chairman of the Federal Reserve. (See the Economy and Finance section.)
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Over at Alt-Market.com, economist Brandon Smiths asks (and answers): Is A Massive Stock Market Reversal Upon Us?
Economy and Finance (Jerome Powell Appointment) :
There has been plenty of conjecture about Fed Head Janet Yellen’s replacement, Jerome Powell. He was appointed by President DJT back in November of 2017, but he didn’t take over until Monday, February 5th, 2018. He has been on the Fed Board of Governors since 2011. Most pundits have suggested that Powell will continue with policies that mirror Yellen’s.
What most people don’t realize is that the Federal Reserve is a private banking cartel. Fed policy and rates are of course set by a majority vote of the Board of Governors, not by just the chairman. The individual governors nearly always come from top leadership within the Federal Reserve banks. Based on nominations suggested by the Fed itself, they are appointed by the U.S. President and confirmed by the U.S. Senate for staggered terms of 14 years each. So their appointments stretch far beyond the influence of any four-year Presidential term in office. Once in place, the Governors are essentially outside of the control of the Executive Branch.
The Jerome Powell appointment is not controversial, but it still raises some questions. What leadership style will Powell employ? Is he a “loose credit” guy, at heart? Will he be a long-term chairman, or bail out after just a few years–like Yellen? And, how much influence will he exert, over the Board of Governors? Some have suggested that the Federal Reserve hasn’t had a forcefully influential Fed chairman since back in the days of Mr. Magoo Alan Greenspan.
Higher Rates Ahead
On Wall Street, the consensus seems to be that the Fed will continue to gradually raise interest rates. That will surely slow economic growth, slow the gains in the stock markets, and strengthen the U.S. Dollar. (Since higher interest rates tend to strengthen national currencies–due to an inflow of foreign investment.) A stronger Dollar will also mean weaker exports. The key questions are: How quickly will the Fed raise rates, and how high will rates go?
If the Fed Board ever takes a strong dislike to the Trump Administration, they could raise rates quickly. The resultant economic disruption would make it almost impossible for Trump to be re-elected. Let’s not kid ourselves, folks. Behind the scenes our Nation is ruled by bankers, not by politicians or statesmen.
The demand for private timber land is growing: Trend 2018: Blended finance and biomass ‘to buoy timber markets’
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