Friday, February 24, 2017 3:00:34 AM
3AMs Du Jour News Zone
MMgys
""Lets Dive In........
.......................Shall We...
Breaking News And Best Of The Web
February 23, 2017
US stocks at record high.
Inflation is spiking on stronger growth.
Fed likely to raise interest rates next month.
Gold and silver at multi-week highs.
Bitcoin near all-time high.
Trump national security adviser scandal evolving.
Debate over Putin and fake news intensifies.
Best Of The Web
Dazed & confused… Treasury buying vs. asset valuations? – Econimica
Michael Belkin interview – King World News
Global trade disaster nearly certain – Mish
The four horsemen of the retirement Apocalypse – Financial Sense
Fed went from lender of last resort to destroyer of American wealth –
Danielle DiMartino Booth
Mother of all financial bubbles – Peak Prosperity
China credit and global inflationary dynamics – Credit Bubble Bulletin
Not nearly enough growth to keep growing – Automatic Earth
11 stunning visualizations of gold show its value and rarity – Visual Capitalist
Bucket economics in global macro – Capitalist Exploits
This is how the status quo unravels – Charles Hugh Smith
Global growth in energy consumption (& economic growth) all about China – Econimica
‘Fed Up’ exposes the elite rot inside the Federal Reserve – MarketWatch
Vice-chairman of EuroThinkTank: “euro may already be lost” – Mish
—————————————————————–
Breaking News
The Economy
2/23 Melissa and millions like her are just one unpaid bill away from the abyss – Guardian
2/23 Why Greece’s crisis has broken all previous records – Ekathimerini
2/23 Fed’s National Activity Index drops in January – Zero Hedge
2/23 Spain is ruined for 50 years – Express
2/23 When was America’s peak wealth? – Automatic Earth
2/23 What investors need to know about US money market funds –
2/23 EC warns Italy over debt, Five Star movement will benefit – Mish
2/23 SEC nominee represented 8 of 10 largest Wall St. banks – Wall St. On Parade
2/23 Can Americans really depend on Social Security? – Miller On The Money
2/23 Vague Fed minutes on “fairly soon” rate hikes; market yawns – Mish
2/23 World out of whack: this is what lies in store for France –
Capitalist Exploits
2/22 China’s $9 trillion moral hazard is now too big to ignore – Bloomberg
2/22 Bank for international settlements warns of looming debt bubble – MunKnee
2/22 The IMF lent to Greece knowing it could never pay back debt – CounterPunch
2/22 Sovereign bond yield spreads signal nervousness – MarketWatch
2/22 The next financial crisis might be in your driveway – Bloomberg
Precious Metals
2/23 “Hold gold”: why this country wants its people to buy gold –
24hGold
2/23 The problem with gold-backed currencies – OfTwoMinds.com
2/23 Are rate hikes bad for gold? – Mish
2/23 Why this “pig” is buying gold again – Casey Research
2/23 $250 silver – Rosen Market Timing Report
2/23 First Majestic Silver reports profitable quarter, record production – First Majestic
2/23 Is 50% of Western central bank gold gone? – Gold Broker
2/23 Gold investors smell a rat in stock markets – Birch Gold
2/23 A crucial week for silver – Silver Doctors
2/23 “The heightened risk of a gold price reset” – Silver Doctors
2/23 Gold, liberty, and the war on cash – ValueWalk
2/22 Rickards: Gold as the new currency standard – Daily Reckoning
2/22 Inflation rising and real Chinese gold demand higher than “official” – GoldCore
2/22 If gold’s a “barbarous relic,” why do governments want it so much? – Miles Franklin
Above Links Found Here
http://dollarcollapse.com/breaking-news/breaking-news/
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I Luv Headlines
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Feb 24 The Problem with Gold-Backed Currencies OfTwoMinds
Feb 24 11 Stunning Visualizations of Gold Show Its Value and Rarity VisualCapitalist
Feb 23 Gold Gets a Shot in the Arm from Inflation and China USfunds
Feb 23 Torchlight Energy: The Hazel Project Is Worth $150 Million SA
Feb 23 The VIX Is A Coiled Spring EAG
Feb 22 The Return of Stagflation DI
Feb 22 Volatility and the Allegory of the Prisoner’s Dilemma ACM
Feb 22 Genesis Metals: Advancing Its Cheerier Gold Project To An Economic Gold Resource In Quebec EAG
Feb 21 Gold & The Inflationary Firestorm Stewart Thomson 321gold
Feb 21 The Rosen Market Timing Letter - Silver Ron Rosen 321gold
Feb 21 Gold’s Fundamentals Strengthen TDG
Feb 21 Gold Sector Update – What Stance is Appropriate? acting-man
Gold shares Silver shares
Feb 23 Opawica [web] New Sponsor, Welcome OPW
Feb 23 Nexus [web] Increases Phase One Drilling at Niangouela & Closes $2 million PP NXS
Feb 22 Imagin [web] Signs $8 Million Term Sheet with New York Private Equity Firm Alumina Partners LLC IME
Feb 22 Columbus [web] Closes Acquisition of 272,000 oz Au Castle Claim Block at Eastside Gold Project, Nevada CGT
Feb 22 MGX [web] Enters Into Earn-In Agreement with Scientific Metals to Acquire Interest in Paradox Basin Lithium Brine Property XMG
Feb 22 Osisko [web] Early Warning Report OR
Feb 22 AIS [web] Announces Guayatayoc Sample Program Results AIS
Feb 22 Prosper [web] Continues Ashley Gold Mine Option PGX
Feb 21 MGX [web] Core Technology Recognized as Finalist for Katerva Award - The Nobel Prize of Sustainability XMG
Feb 21 NV Gold [web] Announces Increase in Private Placement – Now for up to CDN$900,000 NVX
Economy/Stock market
Feb 24 Rate Hike Cycles vs. the US Dollar: Rate Hikes Bad for Gold? MishTalk
Feb 24 Is the US Restaurant Recession Becoming Structural? WS
Feb 23 Deutsche Bank: These 2 risks could derail the US economy BI
Feb 23 Commodity Volatility Collapses EAG
Feb 22 Wall Street Journal Goes With “Alternative Facts” in Hank Greenberg Saga WSOP
Feb 22 Aetna CEO: Obamacare markets are in a 'death spiral' Politico
These above Links Found here
http://www.321gold.com/
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early articles release 2/24 8;42Am
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Rubicon Minerals attribue un contrat de forage à Boart Longyear
8:42 am - Marketwire
Asian shares slip from 1-1/2-year high, Trump's yuan remarks in focus
6:34 am - Reuters
GLOBAL MARKETS-Asian shares slip from 1-1/2-year high, Trump's yuan remarks in focus
6:31 am - Reuters
Global Arc Welding Equipment Market 2017-2021
6:29 am - PR Newswire
Global Aluminum Market for Packaging Industry 2017-2021
6:03 am - PR Newswire
Global Aluminum Pigment Market 2017-2021
5:54 am - PR Newswire
Centerra Gold Reports Fourth Quarter and 2016 Year-end Results
5:26 am - Marketwire
TMAC Nearing Commercial Production at Hope Bay
4:48 am - Business Wire
LeadFX Reports Fourth Quarter and Year-End 2016 Results
4:09 am - CNW Group
Artisan Vehicle Systems delivers two of its battery powered zero emission loaders to Hecla Lucky Friday
3:21 am - CNW Group
Nevsun Announces 2016 Results; Provides 2017 Outlook and Redeploys $120 Million to Fund Timok
2:58 am - CNW Group
Albemarle raises dividend for 23rd consecutive year
2:55 am - PR Newswire
Greif’s Commitment to Health, Safety and Environmental Protection
2:08 am - Business Wire
StreetShares Foundation Rewards Three Veteran Business Owners with $10,000
2:05 am - PR Newswire
Routemaster Provides Corporate Update
2:00 am - Marketwire
Centerra Gold 2016 Year-End Gold Mineral Reserves Increase to 16 Million Contained Ounces
2:00 am - Marketwire
Capstone Mining to Attend Upcoming Investor Conference
1:34 am - PR Newswire
Silver Standard Reports Fourth Quarter and Year-End 2016 Results
1:27 am - PR Newswire
Richmond Minerals Inc. Announces $200,000 Non-Brokered Private Placement
1:17 am - CNW Group
Sandspring announces maiden Mineral Resource Estimate for Sona Hill Discovery
1:11 am - Marketwire
Eldorado Reports 2016 Year-End and Fourth Quarter Financial and Operational Results
1:10 am - CNW Group
Primero Announces Executive Leadership Change
1:00 am - Marketwire
Diamcor Warrant Extension
12:52 am - GlobeNewswire
Stornoway Announces 2016 Financial Results
12:45 am - GlobeNewswire
Alianza Acquiring New Concessions in Central Peru
12:41 am - Marketwire
Guyana Goldfields Inc. Sells 156koz of Gold for 2016 and Ends the Year with Its Best Quarter Across All Operating and Cost Metrics
12:41 am - PR Newswire
Trump again vows to bring back U.S. jobs, but offers few details
12:32 am - Reuters
Gulf Island Fabrication Reports Fourth Quarter Earnings
12:31 am - Business Wire
Gulf Island Fabrication, Inc. Declares Dividend on Common Stock
12:28 am - Business Wire
Global stocks hit record highs on job, tax-cut hopes, oil gains
12:22 am - Reuters
Coeur to Present at Upcoming J.P. Morgan and BMO Conferences
12:20 am - Business Wire
Hillenbrand Announces $100 Million Increase in Share Repurchase Plan
12:15 am - PR Newswire
Commercial Metals Company Announces Second Quarter Fiscal 2017 Conference Call Webcast Details
12:15 am - PR Newswire
GMS Announces Date for Third Quarter Fiscal 2017 Earnings Release and Conference Call
12:15 am - Business Wire
Superior Drilling Products Announces Fourth Quarter and Full Year 2016 Financial Results Release and Conference Call
12:15 am - GlobeNewswire
Monarques Gold Announces $5.1 Million Bought Deal
12:10 am - CNW Group
Avalon Announces the Results of its 2017 Annual and Special Meeting of Shareholders
12:09 am - GlobeNewswire
Century Reports Fourth Quarter 2016 Financial Results
12:05 am - GlobeNewswire
Continental Building Products Reports Fourth Quarter and Full Year 2016 Results
12:05 am - Business Wire
Arconic Board Approves Quarterly Dividends
12:04 am - Business Wire
Golden Dawn Reports New Drilling Results From May Mac Mine
12:01 am - Marketwire
Thursday February 23, 2017
Concerned Shareholders Announce Nominees to Replace the Directors of Beaufield Resources Inc.
11:57 pm - Marketwire
Belo Sun Initiates Long-Lead Item Purchases in Preparation for Construction
11:52 pm - Marketwire
HPQ Silicon Closes First Tranche of Over-Subscribed Private Placement
11:48 pm - Marketwire
Buffett expected to tout passive investing in Berkshire annual letter
11:45 pm - Reuters
Charles-Armand Turpin Files Early Warning Report in Connection With a Subscription in Nouveau Monde Graphite Inc.
11:44 pm - Marketwire
Proto Labs CEO Vicki Holt Joins the Manufacturing Leadership Council's Board of Governors
10:53 pm - PR Newswire
Tantech Chairman and CEO Sees Growth for Tantech Holdings
10:30 pm - PR Newswire
Gungnir Resources Updates Corporate Presentation
10:25 pm - GlobeNewswire
Rapaport Opens Auction with Over 120,000 Carats of Diamonds
9:58 pm - Business Wire
Global and Chinese Molybdenum Piercing Mandrel Industry Report 2017 - Research and Markets
9:53 pm - Business Wire
Iron Ore Company of Canada to proceed with Wabush 3 project
9:41 pm - CNW Group
Red Hut Metals Signs LOI for Rights to Gold-Bearing Claims in California
9:40 pm - Marketwire
Canada's Iron Ore Company budgets C$79 mln for mine expansion
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Todays CQs Stress Reliever
https://www.youtube.com/watch?v=Vq3o3sYpk78
CQs
Hope You EnJoyed Thanks
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Rising Interest Rates Fueling The US Dollar Higher In 2017
I. M. Vronsky
February 23, 2017
1
money
Historically How the Fed Funds Rate Hikes Affect The US Dollar
“Changes in the Federal Funds Rate has and will always affect the US dollar. When the Federal Reserve increases the Federal Funds Rate, it normally reduces inflationary pressure and works to appreciate the dollar.
Since June 2006, however, the Fed has maintained a Federal Funds Rate of close to 0%. In the wake of the 2008 financial crisis, the Federal Funds Rate fluctuated between 0 and 0.25%.
The Fed used this monetary policy to help achieve maximum employment and stable prices. Now that the 2008 financial crisis has largely subsided, the Fed will look to increase interest rates to continue to achieve employment and to stabilize prices.
Inflation Of the US Dollar
The best way to achieve full employment and stable prices is to set the inflation rate of the dollar at 2%. In 2011, the Fed officially adopted a 2% annual increase in the price index for personal consumption expenditures as its target. When the economy is weak, inflation naturally falls; when the economy is strong, rising wages increase inflation. Keeping inflation at a growth rate of 2% helps the economy grow at a healthy rate.
Adjustments to the Federal Funds Rate can also affect inflation in the United States. The Fed controls the economy by increasing interest rates when the economy is growing too fast. This encourages people to save more and spend less, reducing inflationary pressure. Conversely, when the economy is in a recession or growing too slowly, the Fed reduces interest rates to stimulate spending, which increases inflation.
During the 2008 financial crisis, the low Federal Funds Rate should have increased inflation. Over this period, the federal funds rate was set near 0%, which encouraged spending and would normally increase inflation.
However, so far in 2015, inflation is still well below the 2% target, which is contrary to the normal effects of low interest rates. The Fed cites one-off factors, such as falling oil prices and the strengthening dollar, as the reasons why inflation has remained low in a low interest environment.
The Fed believes that these factors will eventually fade and that inflation will increase above the target 2%. To prevent this eventual increase in inflation, hiking the federal funds rate reduces inflationary pressure and cause inflation of the dollar to remain around 2%.
Appreciation Of The US Dollar
Increases in the federal funds rate also result in a strengthening of the US dollar. Other ways that the dollar can appreciate include increases in average wages and increases in overall consumption. However, although jobs are being created, wage rates are stagnant.
Without an increase in wage rates to go along with a strengthening job market, consumption won’t increase enough to sustain economic growth. Additionally, consumption remains subdued due to the fact that the labor force participation rate is close to its 35-year low. The Fed has kept interest rates low because a lower federal funds rate supports business expansions, which leads to more jobs and higher consumption. This has all worked to keep appreciation of the U.S. dollar low.
However, the US is ahead of the other developed markets in terms of its economic recovery. Although the Fed raises rates cautiously, the US could see higher interest rates before the other developed economies.
When the Fed increases interest rates, it attracts foreign funds to the US. This leads to a natural appreciation of the US dollar, even in light of stagnant wages and low domestic consumption.
Overall, under normal economic conditions, increases in the Federal Funds Rate reduce inflation and increase the appreciation of the US dollar. In the 2015 economic environment, increases in interest rates will slow the growth of inflation to the 2% benchmark and increase appreciation.”
(Source: INVESTOPEDIA – Late 2015)
What The Fed Is Thinking Today
On February 22. 2017 Philadelphia Fed President Patrick Harker told Market News International he would likely support a quarter point rate increase at the central bank’s March 14-15 meeting.
Fed Chair Yellen: 'Unwise' To Wait Too Long To Hike Interest Rates
“Waiting too long to raise interest rates would be "unwise" as economic growth continues and inflation rises, Fed Chair Janet Yellen told Congress last week.
Repeating caution that she and other central bank officials have issued in recent months, Yellen said that even though the Fed expects to hike gradually and to keep policy accommodative, getting rates back to normal levels is important and hikes will be considered ahead.
Market reaction was prompt, with government bond yields jumping on sentiment that Yellen was teeing up next month's Fed meeting as possible for a rate hike.
"By leaving March rate hike options open, Chair Yellen is sticking with her playbook with repeated reminders that every meeting is in fact a live meeting," said Mark Hamrick, senior economic analyst at Bankrate.com.
The Fed kept its target overnight lending rate near zero for seven years and raised just twice since — in December 2015 and again a year later. The funds rate is currently targeted in the 0.5 percent to 0.75 percent range.” (Source: http://www.cnbc.com/2017/02/14/fed-chair-janet-yellen-unwise-to-wait-too-long-to-hike-interest-rates.html )
What To Expect For Fed Rate Hikes In 2017
“What investors absolutely have to get used to under this post-election cycle into year-end is that the Federal Reserve looks overwhelmingly as though a Fed Funds Rate hike is coming in December. They wanted to avoid any presidential election fallout, but inflation is getting close enough to the Fed’s target of 2.0% to 2.5% and employment is close enough to full that the Federal Reserve almost has no choice but to act.
Even with Janet Yellen offering testimony, the reality is that there were over 20 instances of Fed heads offering up live commentary and making media appearances. Well over half of those are leaning to rate hikes.” (Source: http://247wallst.com/economy/2016/11/19/what-to-expect-for-fed-rate-hikes-in-december-and-in-2017/ )
President Trump's Policies May Lead To Rate Hike Soon: US Federal Reserve
The Federal Reserve said the economy's continued growth might convince it to raise its benchmark interest rate "fairly soon" due to the ambitious policies proposed by President Donald Trump that may have unforeseen effects, the media reported.
The Federal Reserve made the statement recently after officials spent their meeting three weeks ago consumed with the changes brought on by a new administration in the White House, NBC News reported.
The Federal Open Market Committee - the central bank's policymaking arm - discussed at length the impact from lower taxes and regulations and higher domestic spending under President Trump, according to minutes of the January 31 - February 1 session. The meeting was the first since Trump took office on January 20. Many participants expressed the view that it might be appropriate to raise the Federal Funds Rate again fairly soon" if data on jobs and inflation are "in line with or stronger than their current expectations", or if the risk increased that the Fed might overshoot its goals, the meeting summary stated. Jobs numbers indeed have been solid and the Consumer Price Index inflation indicator is at its highest level in years, NBC News reported. The US Treasury yield curve flattened slightly following the minutes' release, with the short-term two-year note yield trading higher, near 1.23 per cent, and the benchmark 10-year note yield slipping to 2.41 per cent. One example of the policy dilemma was "upside risks" that would come with "more expansionary fiscal policy or a more rapid build-up of inflationary pressures," as well as the downside risks of an appreciating US dollar. Most participants continued to see heightened uncertainty regarding the size, composition, and timing of possible changes to fiscal and other government policies, and about their net effects on the economy and inflation over the medium term, and they thought some time would likely be required for the outlook to become clearer," the minutes added. (Source: http://www.newindianexpress.com/business/2017/feb/23/president-trumps-policies-may-lead-to-rate-hike-soon-us-federal-reserve-1573872.html )
Yellen: March 2017 Rate Hike Is On The Table
Federal Reserve Chair Janet Yellen told Congress Tuesday that an interest rate hike in March remains on the table, pushing back against market expectations that the Fed will stand pat.
“Precisely when we take an action -- March, May or June -- I can’t tell you,” Yellen told the Senate Banking Committee. “I would say every meeting is live.”
Fed fund futures say there’s just an 18% chance of a rate increase in March, versus. about 50% in June. The Fed raised its benchmark rate by a quarter percentage point in December to a range of 0.5% to 0.75%. That was its first hike in a year.
In December, Fed policymakers forecast three rate increases in 2017, up from its estimate of two bumps in September, citing an improving economy and labor market.
San Francisco Fed President John Williams recently suggested a March increase is a possibility. And Chicago Fed chief Charles Evans, typically a “dove” who prefers to keep rates low to spur growth, said he officially predicted two rate hikes but could be comfortable with three moves.” (Source: http://www.usatoday.com/story/money/2017/02/14/yellen-march-rate-hike-table/97873408/ )
Fed Likely To Raise Interest Rates At Coming Meetings, Yellen Says
(Source: http://www.marketwatch.com/story/yellen-says-interest-rate-hikes-can-be-gradual-2017-02-14 )
Fed Raises Rates, WSJ Anticipates 3 Fed Rate Increases in 2017
“The Federal Reserve said it would raise its benchmark short-term interest rate for the first time in a year and expects to lift it faster than previously projected in the coming year.”
(Source: https://goldstocksforex.com/2016/12/14/fed-raises-rates-anticipates-3-increases-in-2017-wsj/ )
Yellen Sees More Rate Hikes Ahead If Economy Stays On Course
‘Waiting too long to remove accommodation would be unwise’
She gives no clear signal on timing of Fed’s next move
(Source: https://www.bloomberg.com/news/articles/2017-02-14/yellen-sees-more-rate-hikes-needed-if-economy-stays-on-course
Janet Yellen signals March Rate Hike Is Possible
(Source: http://money.cnn.com/2017/02/14/news/economy/janet-yellen-federal-reserve-hike-testimony/ )
US Dollar Not Likely to See Major Move During Next Rate Increase…HOWEVER
According to INVESTOPEDIA:
“When the Federal Reserve once again enters a rising rate cycle, do not expect the US dollar to sustain a substantial move. For one thing, as mentioned above, US rate increases have had low to negative correlation with the US dollar, and the U.S. dollar has already sustained a massive rally since late 2014. Since late last 2014, the US dollar index has rallied from around $81 to its current $97.59 in November 2015. At one point, the index was above $100. This is a substantial move in the currency markets, as investors have been highly anticipating a rate increase for the past year. Analysts and market pundits have continually reiterated there is a strong likelihood the dollar’s response to a rate increase could be relatively muted.
The Bottom Line (According To INVESTOPEDIA)
The bottom line is the United States has been in a record low interest rate environment for almost eight years, and the US economy’s sluggish growth actively reflects the current environment. Rising interest rates signal more confidence in the economy, but do not be fooled; rising rates are shown to have less correlation with the US dollar over the past couple of decades. Tie in the fact the US dollar has already seen a massive rally since late 2014 and this leads to the likelihood that investors who are betting on another sustained leg higher in the U.S. dollar rally are likely to be sorely disappointed.”
INVESTOPEDIA Views Are Short-Sighted In Ignoring A Very Crucial Factor (i.e. The Crumbling Euro)
Although INVESTOPEDIA makes some valid observations, it does NOT take into account the tumbling value of the Euro currency and the distinct possibility that the Euro Union (EU) is hell bent for leather heading to dissolution. And in that event, many millions of investors will dump the fading Euro and flee in panic to the heretofore global Reserve Currency…to wit: the US greenback. Indeed and fact the Euro currency has relentlessly lost value vis-à-vis the US Dollar Index during the past nine years (since early 2008). Moreover, there is nothing on the horizon that even hints of a reversal for the ill-conceived and ill-fated EU….Au Contraire: the Euro could plummet to about 70 in the not too distant future (see chart).
And as all monetary pundits well know, the US Dollar Index is the inverse of the Euro:
http://stockcharts.com/h-sc/ui?s=%24USD&p=M&yr=20&mn=0&dy=0&id=p56151114575&a=470823105&listNum=1
Short-Term Point&Figure Technical Analysis Is Calling For The US$ To Rise To Nearly 105
As one of the important TA indicators, P&F Analysis should also be considered along with other indicators before taking a position. Nonetheless, P&F is calling for the US$ to rise to 104.34. However, no time frame is given.
http://www.silver-phoenix500.com/article/rising-interest-rates-fueling-us-dollar-higher-2017
.jpg)
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MMgys
3AMs Du Jour News Zone
""Lets Dive In........
.......................Shall We...
Breaking News And Best Of The Web
February 23, 2017
US stocks at record high.
Inflation is spiking on stronger growth.
Fed likely to raise interest rates next month.
Gold and silver at multi-week highs.
Bitcoin near all-time high.
Trump national security adviser scandal evolving.
Debate over Putin and fake news intensifies.
Best Of The Web
Dazed & confused… Treasury buying vs. asset valuations? – Econimica
Michael Belkin interview – King World News
Global trade disaster nearly certain – Mish
The four horsemen of the retirement Apocalypse – Financial Sense
Fed went from lender of last resort to destroyer of American wealth –
Danielle DiMartino Booth
Mother of all financial bubbles – Peak Prosperity
China credit and global inflationary dynamics – Credit Bubble Bulletin
Not nearly enough growth to keep growing – Automatic Earth
11 stunning visualizations of gold show its value and rarity – Visual Capitalist
Bucket economics in global macro – Capitalist Exploits
This is how the status quo unravels – Charles Hugh Smith
Global growth in energy consumption (& economic growth) all about China – Econimica
‘Fed Up’ exposes the elite rot inside the Federal Reserve – MarketWatch
Vice-chairman of EuroThinkTank: “euro may already be lost” – Mish
—————————————————————–
Breaking News
The Economy
2/23 Melissa and millions like her are just one unpaid bill away from the abyss – Guardian
2/23 Why Greece’s crisis has broken all previous records – Ekathimerini
2/23 Fed’s National Activity Index drops in January – Zero Hedge
2/23 Spain is ruined for 50 years – Express
2/23 When was America’s peak wealth? – Automatic Earth
2/23 What investors need to know about US money market funds –
2/23 EC warns Italy over debt, Five Star movement will benefit – Mish
2/23 SEC nominee represented 8 of 10 largest Wall St. banks – Wall St. On Parade
2/23 Can Americans really depend on Social Security? – Miller On The Money
2/23 Vague Fed minutes on “fairly soon” rate hikes; market yawns – Mish
2/23 World out of whack: this is what lies in store for France –
Capitalist Exploits
2/22 China’s $9 trillion moral hazard is now too big to ignore – Bloomberg
2/22 Bank for international settlements warns of looming debt bubble – MunKnee
2/22 The IMF lent to Greece knowing it could never pay back debt – CounterPunch
2/22 Sovereign bond yield spreads signal nervousness – MarketWatch
2/22 The next financial crisis might be in your driveway – Bloomberg
Precious Metals
2/23 “Hold gold”: why this country wants its people to buy gold –
24hGold
2/23 The problem with gold-backed currencies – OfTwoMinds.com
2/23 Are rate hikes bad for gold? – Mish
2/23 Why this “pig” is buying gold again – Casey Research
2/23 $250 silver – Rosen Market Timing Report
2/23 First Majestic Silver reports profitable quarter, record production – First Majestic
2/23 Is 50% of Western central bank gold gone? – Gold Broker
2/23 Gold investors smell a rat in stock markets – Birch Gold
2/23 A crucial week for silver – Silver Doctors
2/23 “The heightened risk of a gold price reset” – Silver Doctors
2/23 Gold, liberty, and the war on cash – ValueWalk
2/22 Rickards: Gold as the new currency standard – Daily Reckoning
2/22 Inflation rising and real Chinese gold demand higher than “official” – GoldCore
2/22 If gold’s a “barbarous relic,” why do governments want it so much? – Miles Franklin
Above Links Found Here
http://dollarcollapse.com/breaking-news/breaking-news/
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
I Luv Headlines
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Feb 24 The Problem with Gold-Backed Currencies OfTwoMinds
Feb 24 11 Stunning Visualizations of Gold Show Its Value and Rarity VisualCapitalist
Feb 23 Gold Gets a Shot in the Arm from Inflation and China USfunds
Feb 23 Torchlight Energy: The Hazel Project Is Worth $150 Million SA
Feb 23 The VIX Is A Coiled Spring EAG
Feb 22 The Return of Stagflation DI
Feb 22 Volatility and the Allegory of the Prisoner’s Dilemma ACM
Feb 22 Genesis Metals: Advancing Its Cheerier Gold Project To An Economic Gold Resource In Quebec EAG
Feb 21 Gold & The Inflationary Firestorm Stewart Thomson 321gold
Feb 21 The Rosen Market Timing Letter - Silver Ron Rosen 321gold
Feb 21 Gold’s Fundamentals Strengthen TDG
Feb 21 Gold Sector Update – What Stance is Appropriate? acting-man
Gold shares Silver shares
Feb 23 Opawica [web] New Sponsor, Welcome OPW
Feb 23 Nexus [web] Increases Phase One Drilling at Niangouela & Closes $2 million PP NXS
Feb 22 Imagin [web] Signs $8 Million Term Sheet with New York Private Equity Firm Alumina Partners LLC IME
Feb 22 Columbus [web] Closes Acquisition of 272,000 oz Au Castle Claim Block at Eastside Gold Project, Nevada CGT
Feb 22 MGX [web] Enters Into Earn-In Agreement with Scientific Metals to Acquire Interest in Paradox Basin Lithium Brine Property XMG
Feb 22 Osisko [web] Early Warning Report OR
Feb 22 AIS [web] Announces Guayatayoc Sample Program Results AIS
Feb 22 Prosper [web] Continues Ashley Gold Mine Option PGX
Feb 21 MGX [web] Core Technology Recognized as Finalist for Katerva Award - The Nobel Prize of Sustainability XMG
Feb 21 NV Gold [web] Announces Increase in Private Placement – Now for up to CDN$900,000 NVX
Economy/Stock market
Feb 24 Rate Hike Cycles vs. the US Dollar: Rate Hikes Bad for Gold? MishTalk
Feb 24 Is the US Restaurant Recession Becoming Structural? WS
Feb 23 Deutsche Bank: These 2 risks could derail the US economy BI
Feb 23 Commodity Volatility Collapses EAG
Feb 22 Wall Street Journal Goes With “Alternative Facts” in Hank Greenberg Saga WSOP
Feb 22 Aetna CEO: Obamacare markets are in a 'death spiral' Politico
These above Links Found here
http://www.321gold.com/
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
early articles release 2/24 8;42Am
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Rubicon Minerals attribue un contrat de forage à Boart Longyear
8:42 am - Marketwire
Asian shares slip from 1-1/2-year high, Trump's yuan remarks in focus
6:34 am - Reuters
GLOBAL MARKETS-Asian shares slip from 1-1/2-year high, Trump's yuan remarks in focus
6:31 am - Reuters
Global Arc Welding Equipment Market 2017-2021
6:29 am - PR Newswire
Global Aluminum Market for Packaging Industry 2017-2021
6:03 am - PR Newswire
Global Aluminum Pigment Market 2017-2021
5:54 am - PR Newswire
Centerra Gold Reports Fourth Quarter and 2016 Year-end Results
5:26 am - Marketwire
TMAC Nearing Commercial Production at Hope Bay
4:48 am - Business Wire
LeadFX Reports Fourth Quarter and Year-End 2016 Results
4:09 am - CNW Group
Artisan Vehicle Systems delivers two of its battery powered zero emission loaders to Hecla Lucky Friday
3:21 am - CNW Group
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Todays CQs Stress Reliever
https://www.youtube.com/watch?v=Vq3o3sYpk78
CQs
Has someone brought you a light tonight :)
Hope You EnJoyed Thanks
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Rising Interest Rates Fueling The US Dollar Higher In 2017
I. M. Vronsky
February 23, 2017
1
money
Historically How the Fed Funds Rate Hikes Affect The US Dollar
“Changes in the Federal Funds Rate has and will always affect the US dollar. When the Federal Reserve increases the Federal Funds Rate, it normally reduces inflationary pressure and works to appreciate the dollar.
Since June 2006, however, the Fed has maintained a Federal Funds Rate of close to 0%. In the wake of the 2008 financial crisis, the Federal Funds Rate fluctuated between 0 and 0.25%.
The Fed used this monetary policy to help achieve maximum employment and stable prices. Now that the 2008 financial crisis has largely subsided, the Fed will look to increase interest rates to continue to achieve employment and to stabilize prices.
Inflation Of the US Dollar
The best way to achieve full employment and stable prices is to set the inflation rate of the dollar at 2%. In 2011, the Fed officially adopted a 2% annual increase in the price index for personal consumption expenditures as its target. When the economy is weak, inflation naturally falls; when the economy is strong, rising wages increase inflation. Keeping inflation at a growth rate of 2% helps the economy grow at a healthy rate.
Adjustments to the Federal Funds Rate can also affect inflation in the United States. The Fed controls the economy by increasing interest rates when the economy is growing too fast. This encourages people to save more and spend less, reducing inflationary pressure. Conversely, when the economy is in a recession or growing too slowly, the Fed reduces interest rates to stimulate spending, which increases inflation.
During the 2008 financial crisis, the low Federal Funds Rate should have increased inflation. Over this period, the federal funds rate was set near 0%, which encouraged spending and would normally increase inflation.
However, so far in 2015, inflation is still well below the 2% target, which is contrary to the normal effects of low interest rates. The Fed cites one-off factors, such as falling oil prices and the strengthening dollar, as the reasons why inflation has remained low in a low interest environment.
The Fed believes that these factors will eventually fade and that inflation will increase above the target 2%. To prevent this eventual increase in inflation, hiking the federal funds rate reduces inflationary pressure and cause inflation of the dollar to remain around 2%.
Appreciation Of The US Dollar
Increases in the federal funds rate also result in a strengthening of the US dollar. Other ways that the dollar can appreciate include increases in average wages and increases in overall consumption. However, although jobs are being created, wage rates are stagnant.
Without an increase in wage rates to go along with a strengthening job market, consumption won’t increase enough to sustain economic growth. Additionally, consumption remains subdued due to the fact that the labor force participation rate is close to its 35-year low. The Fed has kept interest rates low because a lower federal funds rate supports business expansions, which leads to more jobs and higher consumption. This has all worked to keep appreciation of the U.S. dollar low.
However, the US is ahead of the other developed markets in terms of its economic recovery. Although the Fed raises rates cautiously, the US could see higher interest rates before the other developed economies.
When the Fed increases interest rates, it attracts foreign funds to the US. This leads to a natural appreciation of the US dollar, even in light of stagnant wages and low domestic consumption.
Overall, under normal economic conditions, increases in the Federal Funds Rate reduce inflation and increase the appreciation of the US dollar. In the 2015 economic environment, increases in interest rates will slow the growth of inflation to the 2% benchmark and increase appreciation.”
(Source: INVESTOPEDIA – Late 2015)
What The Fed Is Thinking Today
On February 22. 2017 Philadelphia Fed President Patrick Harker told Market News International he would likely support a quarter point rate increase at the central bank’s March 14-15 meeting.
Fed Chair Yellen: 'Unwise' To Wait Too Long To Hike Interest Rates
“Waiting too long to raise interest rates would be "unwise" as economic growth continues and inflation rises, Fed Chair Janet Yellen told Congress last week.
Repeating caution that she and other central bank officials have issued in recent months, Yellen said that even though the Fed expects to hike gradually and to keep policy accommodative, getting rates back to normal levels is important and hikes will be considered ahead.
Market reaction was prompt, with government bond yields jumping on sentiment that Yellen was teeing up next month's Fed meeting as possible for a rate hike.
"By leaving March rate hike options open, Chair Yellen is sticking with her playbook with repeated reminders that every meeting is in fact a live meeting," said Mark Hamrick, senior economic analyst at Bankrate.com.
The Fed kept its target overnight lending rate near zero for seven years and raised just twice since — in December 2015 and again a year later. The funds rate is currently targeted in the 0.5 percent to 0.75 percent range.” (Source: http://www.cnbc.com/2017/02/14/fed-chair-janet-yellen-unwise-to-wait-too-long-to-hike-interest-rates.html )
What To Expect For Fed Rate Hikes In 2017
“What investors absolutely have to get used to under this post-election cycle into year-end is that the Federal Reserve looks overwhelmingly as though a Fed Funds Rate hike is coming in December. They wanted to avoid any presidential election fallout, but inflation is getting close enough to the Fed’s target of 2.0% to 2.5% and employment is close enough to full that the Federal Reserve almost has no choice but to act.
Even with Janet Yellen offering testimony, the reality is that there were over 20 instances of Fed heads offering up live commentary and making media appearances. Well over half of those are leaning to rate hikes.” (Source: http://247wallst.com/economy/2016/11/19/what-to-expect-for-fed-rate-hikes-in-december-and-in-2017/ )
President Trump's Policies May Lead To Rate Hike Soon: US Federal Reserve
The Federal Reserve said the economy's continued growth might convince it to raise its benchmark interest rate "fairly soon" due to the ambitious policies proposed by President Donald Trump that may have unforeseen effects, the media reported.
The Federal Reserve made the statement recently after officials spent their meeting three weeks ago consumed with the changes brought on by a new administration in the White House, NBC News reported.
The Federal Open Market Committee - the central bank's policymaking arm - discussed at length the impact from lower taxes and regulations and higher domestic spending under President Trump, according to minutes of the January 31 - February 1 session. The meeting was the first since Trump took office on January 20. Many participants expressed the view that it might be appropriate to raise the Federal Funds Rate again fairly soon" if data on jobs and inflation are "in line with or stronger than their current expectations", or if the risk increased that the Fed might overshoot its goals, the meeting summary stated. Jobs numbers indeed have been solid and the Consumer Price Index inflation indicator is at its highest level in years, NBC News reported. The US Treasury yield curve flattened slightly following the minutes' release, with the short-term two-year note yield trading higher, near 1.23 per cent, and the benchmark 10-year note yield slipping to 2.41 per cent. One example of the policy dilemma was "upside risks" that would come with "more expansionary fiscal policy or a more rapid build-up of inflationary pressures," as well as the downside risks of an appreciating US dollar. Most participants continued to see heightened uncertainty regarding the size, composition, and timing of possible changes to fiscal and other government policies, and about their net effects on the economy and inflation over the medium term, and they thought some time would likely be required for the outlook to become clearer," the minutes added. (Source: http://www.newindianexpress.com/business/2017/feb/23/president-trumps-policies-may-lead-to-rate-hike-soon-us-federal-reserve-1573872.html )
Yellen: March 2017 Rate Hike Is On The Table
Federal Reserve Chair Janet Yellen told Congress Tuesday that an interest rate hike in March remains on the table, pushing back against market expectations that the Fed will stand pat.
“Precisely when we take an action -- March, May or June -- I can’t tell you,” Yellen told the Senate Banking Committee. “I would say every meeting is live.”
Fed fund futures say there’s just an 18% chance of a rate increase in March, versus. about 50% in June. The Fed raised its benchmark rate by a quarter percentage point in December to a range of 0.5% to 0.75%. That was its first hike in a year.
In December, Fed policymakers forecast three rate increases in 2017, up from its estimate of two bumps in September, citing an improving economy and labor market.
San Francisco Fed President John Williams recently suggested a March increase is a possibility. And Chicago Fed chief Charles Evans, typically a “dove” who prefers to keep rates low to spur growth, said he officially predicted two rate hikes but could be comfortable with three moves.” (Source: http://www.usatoday.com/story/money/2017/02/14/yellen-march-rate-hike-table/97873408/ )
Fed Likely To Raise Interest Rates At Coming Meetings, Yellen Says
(Source: http://www.marketwatch.com/story/yellen-says-interest-rate-hikes-can-be-gradual-2017-02-14 )
Fed Raises Rates, WSJ Anticipates 3 Fed Rate Increases in 2017
“The Federal Reserve said it would raise its benchmark short-term interest rate for the first time in a year and expects to lift it faster than previously projected in the coming year.”
(Source: https://goldstocksforex.com/2016/12/14/fed-raises-rates-anticipates-3-increases-in-2017-wsj/ )
Yellen Sees More Rate Hikes Ahead If Economy Stays On Course
‘Waiting too long to remove accommodation would be unwise’
She gives no clear signal on timing of Fed’s next move
(Source: https://www.bloomberg.com/news/articles/2017-02-14/yellen-sees-more-rate-hikes-needed-if-economy-stays-on-course
Janet Yellen signals March Rate Hike Is Possible
(Source: http://money.cnn.com/2017/02/14/news/economy/janet-yellen-federal-reserve-hike-testimony/ )
US Dollar Not Likely to See Major Move During Next Rate Increase…HOWEVER
According to INVESTOPEDIA:
“When the Federal Reserve once again enters a rising rate cycle, do not expect the US dollar to sustain a substantial move. For one thing, as mentioned above, US rate increases have had low to negative correlation with the US dollar, and the U.S. dollar has already sustained a massive rally since late 2014. Since late last 2014, the US dollar index has rallied from around $81 to its current $97.59 in November 2015. At one point, the index was above $100. This is a substantial move in the currency markets, as investors have been highly anticipating a rate increase for the past year. Analysts and market pundits have continually reiterated there is a strong likelihood the dollar’s response to a rate increase could be relatively muted.
The Bottom Line (According To INVESTOPEDIA)
The bottom line is the United States has been in a record low interest rate environment for almost eight years, and the US economy’s sluggish growth actively reflects the current environment. Rising interest rates signal more confidence in the economy, but do not be fooled; rising rates are shown to have less correlation with the US dollar over the past couple of decades. Tie in the fact the US dollar has already seen a massive rally since late 2014 and this leads to the likelihood that investors who are betting on another sustained leg higher in the U.S. dollar rally are likely to be sorely disappointed.”
INVESTOPEDIA Views Are Short-Sighted In Ignoring A Very Crucial Factor (i.e. The Crumbling Euro)
Although INVESTOPEDIA makes some valid observations, it does NOT take into account the tumbling value of the Euro currency and the distinct possibility that the Euro Union (EU) is hell bent for leather heading to dissolution. And in that event, many millions of investors will dump the fading Euro and flee in panic to the heretofore global Reserve Currency…to wit: the US greenback. Indeed and fact the Euro currency has relentlessly lost value vis-à-vis the US Dollar Index during the past nine years (since early 2008). Moreover, there is nothing on the horizon that even hints of a reversal for the ill-conceived and ill-fated EU….Au Contraire: the Euro could plummet to about 70 in the not too distant future (see chart).
And as all monetary pundits well know, the US Dollar Index is the inverse of the Euro:
http://stockcharts.com/h-sc/ui?s=%24USD&p=M&yr=20&mn=0&dy=0&id=p56151114575&a=470823105&listNum=1
Short-Term Point&Figure Technical Analysis Is Calling For The US$ To Rise To Nearly 105
As one of the important TA indicators, P&F Analysis should also be considered along with other indicators before taking a position. Nonetheless, P&F is calling for the US$ to rise to 104.34. However, no time frame is given.
http://www.silver-phoenix500.com/article/rising-interest-rates-fueling-us-dollar-higher-2017
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