Here are the latest news 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 SurvivalBlog’s Founder and Senior Editor, JWR. Today’s focus is on the Fed’s QE Unwind. (See the Economy & Finance section.)
Precious Metals:
Gold Bounces Off Lows Following ‘Dovish’ Comments From Powell
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Cliff Droke: Gold’s Safety Factor Kicks Into High Gear
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Wall St., Main St. Bullish On Gold Despite Jobs Data
Economy & Finance (Fed’s QE Unwind):
At Wolf Street: Fed’s Balance Sheet Reduction Reaches $402 Billion. Here is a quote: “The QE unwind has started to rattle some nerves. For the past two months, the sound of wailing and gnashing of teeth about the Fed’s QE unwind has been deafening. The Fed started the QE unwind in October 2017. As I covered it on a monthly basis, my ruminations on how it would unwind part of the asset-price inflation and Bernanke’s “wealth effect” that had resulted from QE were frequently pooh-poohed. They said that the truly glacial pace of the QE unwind was too slow to make any difference; that QE had just been a “book-keeping entry,” and that therefore the QE unwind would also be just a book-keeping entry; that QE had never caused any kind of asset price inflation in the first place, and that therefore the QE unwind would not reverse that asset-price inflation, or whatever.
But in October last year, when all kinds of markets started reversing this asset price inflation, suddenly, the QE unwind got blamed, and the Fed – particularly Fed Chairman Jerome Powell – has been put under intense pressure to cut it out.”
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Millions could face severe cuts to food stamps due to government shutdown
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And at Bloomberg: Markets Signal 2019 Focus Will Be Fed’s Balance-Sheet Unwind