money

Fed Vice Chair Says Higher Rates Not Assured After Thresholds Hit

"Federal Reserve Vice Chairman Janet Yellen said the central bank may hold the benchmark lending rate near zero even if unemployment and inflation hit its near-term policy targets. U.S. central bankers are focusing the full force of monetary policy on reviving growth and reducing 7.9 percent unemployment, using near-zero interest rates and a program of unprecedented bond buying. Yellen’s comments reflect the view of some policy makers that there is a risk of damaging the expansion by raising rates too early." Continue reading →

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Central banks last year bought most gold since ’64

"The world's central banks last year bought 534.6 tons of gold in 2012, the most since 1964, as global gold demand hit a record value level, the World Gold Council said Thursday in a quarterly report. Purchases by central banks for the full year rose 17% compared with 2011, while fourth-quarter purchases of 145 tons marked a 29% rise from the same period a year earlier. In value terms, total gold demand in 2012 was $236.4 billion, an all-time high, the council said" Continue reading →

Continue ReadingCentral banks last year bought most gold since ’64

Americans Are Tapping Their Homes For Cash Again

"Nearly 11 million borrowers are underwater on their mortgages, owing more than their homes are worth, according to CoreLogic, and yet home equity lines of credit are suddenly on the rise again. Blackwell pointed to increased consumer confidence, meaning borrowers now feel better about their ability to repay these loans. Both factors fueled a 19 percent jump in originations of home equity lines of credit at the end of last year, according to Equifax. In 2008, as housing was crashing, home equity line originations dropped 55 percent. With home prices up 8 percent year-over-year in December, homeowners are regaining home equity at a fast clip." Continue reading →

Continue ReadingAmericans Are Tapping Their Homes For Cash Again

Housing Industry Hopes Obama Line Will Soften Mortgage Rule

"U.S. Realtors and mortgage bankers say they hope President Barack Obama’s call for streamlined mortgage rules in his State of the Union speech will help them persuade regulators not to set a strict minimum down payment for home loans. At issue is the so-called qualified residential mortgage rule, which six banking regulators including the Federal Deposit Insurance Corp. and the Federal Reserve are aiming to complete this year. The regulators drew protests in 2011 when they released a preliminary draft requiring lenders to keep a stake in mortgages with down payments of less than 20 percent and those issued to [debt-laden] borrowers." Continue reading →

Continue ReadingHousing Industry Hopes Obama Line Will Soften Mortgage Rule

Draconian Cash Controls Are Coming To France

"Ayrault trotted out his national plan, a 20-page document that outlined his all-out effort to go after any kind of behavior that could possibly deprive the government of those sorely needed euros. Stuffed into that 20-page national plan: prohibiting cash payments of over €1,000 per purchase. It’s urgent. He wants to get the process started soon so that 'a decree and legislative measures' can be finished by the end of 2013. Two crisp 500-euro bills and a single coin: voilà, an illegal transaction. But the limit would only apply to fiscal residents. Fiscal residents of a country other than France would be able to pay €10,000 in cash per purchase." Continue reading →

Continue ReadingDraconian Cash Controls Are Coming To France

Countries are using devaluation to gain an advantage – and Britain is one of the worst offenders

"At Wednesday’s Inflation Report press conference, Sir Mervyn King, Governor of the Bank of England, aired some apparently shocking numbers. Since the financial crisis began, not only had interest rates been reduced to close to zero, but the Bank of England’s balance sheet had been expanded by a factor of five. Expressed as a share of GDP, the increase has been greater than that of the US, greater than that of the European Central Bank, and greater than that of Japan. This is way beyond being an unprecedented degree of stimulus. These are completely uncharted waters we are in, and even Sir Mervyn seems to be getting worried by them." Continue reading →

Continue ReadingCountries are using devaluation to gain an advantage – and Britain is one of the worst offenders

The Ascent of Whatever-It-Takes Banking Is a Good Thing?

"We didn't realize the reaction to criticism that central bankers were rash and their strategic destabilizing would result in a worldwide movement of even MORE activist bankers. You've read it for yourselves now. A 'new breed' of banker is emerging that will grasp the true power of the printing press and pump harder. Yet it simply must be admitted that central bankers don't ever know how much money is too much. There are no tools that exist that can divine the future. If new and bolder central bankers are going to print even MORE money, the booms and busts shall be correspondingly larger. This would seem to be an illogical solution, but in truth, not so." Continue reading →

Continue ReadingThe Ascent of Whatever-It-Takes Banking Is a Good Thing?

From Watery Bourbon To Horse-Meat Chili: Hidden Inflation Is Everywhere

"We’ve had an endless series of products whose ingredients have been cheapened in order to maintain the price. Consumers won’t be able to taste the difference, the theory goes. So, as the horse-meat lasagna scandal in Europe is spiraling beautifully out of control, we’re now getting hit where it hurts: Maker’s Mark is watering down its bourbon." Continue reading →

Continue ReadingFrom Watery Bourbon To Horse-Meat Chili: Hidden Inflation Is Everywhere

G20 will ignore G7 demands on currency wars

"The currency market was thrown into turmoil this week after the G7 - the United States, Japan, Germany, Britain, France, Canada and Italy - issued a joint statement stating that domestic economic policies must not be used to target currencies. The G20 draft merely sticks to previous G20 language on the need to avoid excessive foreign exchange volatility, the delegate said. Others have noted that the United States has created new money in a very similar way to the Bank of Japan, although Federal Reserve Chairman Ben Bernanke insisted the U.S. central bank was acting in line with the G7 statement, 'using domestic policy tools to advance domestic objectives'." Continue reading →

Continue ReadingG20 will ignore G7 demands on currency wars

G20 will ignore G7 demands on currency wars

"The currency market was thrown into turmoil this week after the G7 - the United States, Japan, Germany, Britain, France, Canada and Italy - issued a joint statement stating that domestic economic policies must not be used to target currencies. The G20 draft merely sticks to previous G20 language on the need to avoid excessive foreign exchange volatility, the delegate said. Others have noted that the United States has created new money in a very similar way to the Bank of Japan, although Federal Reserve Chairman Ben Bernanke insisted the U.S. central bank was acting in line with the G7 statement, 'using domestic policy tools to advance domestic objectives'." Continue reading →

Continue ReadingG20 will ignore G7 demands on currency wars