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The FED and the Bond Market

Written by Gary North on September 12, 2013

The Federal Reserve creates $85 billion a month in new money in order to subsidize mortgages ($40 billion) and U.S. government bonds ($45 billion). This is now considered normal. Any reduction in this increase is referred to as “tapering off.” FED-watchers still expect the Federal Open Market Committee (FOMC) to announce a reduction to $75 […]

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PIMCO Loses $41 Billion in Withdrawals

Posted on September 6, 2013

With investors anticipating the end of the Federal Reserve’s stimulus program, the biggest mutual fund in the world, Pimco’s Total Return Fund, took a $41 billion hit over the past four months after losses and withdrawals, according to Morningstar. The $292 billion fund has shrunk to $251 billion, a reduction of 14 percent, since May, […]

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The FEDsters Are Multimillionaires

Written by Gary North on September 2, 2013

The senior officers of the Board of Governors are rich. So are some of the regional FED bank presidents. One of them is worth $50 million. Another owns 7,000 acres of land. He even owns gold. The FED is politically untouchable. Congress will not let the Government Accountability Office audit it. We hear of the […]

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Does Gold’s Price Matter to the Central Banks? No.

Written by Gary North on August 27, 2013

I have been writing about gold ever since my 1965 booklet, Inflation: The Economics of Addiction. That’s a long time. In 1970, you could buy British gold sovereigns for $10. These were quarter-ounce gold coins. In 2001, you could buy gold bullion for under $260. Gold has skyrocketed. Does anyone in Washington care? No. Do […]

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Taper, Taper, Bubble, Bubble, Pop, Pop

Written by Gary North on August 26, 2013

This is a typical media story on the possibility that the Federal Reserve may not stop counterfeiting as much money in September as it is today — a position I have repeatedly maintained. The basic assumption is this: the world’s stock markets are governed by fears of FED tapering, and little else. Asian stock markets […]

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Bernanke Explained in Simple English (Australian)

Written by Gary North on August 23, 2013

So, you have trouble understanding Bernanke. Maybe you are not sure what tapering is. But you do not want to admit this publicly. You want to be able to nod your head, and say something authoritative sounding, but not specific enough so that your listener will know you’re faking it. Well, I have good news. […]

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Taper Is Coming. Stock Market Rises.

Written by Gary North on August 23, 2013

Yesterday, the stock market rallied a little. The explanation, according to a Reuters story, is that there are signs that the Federal Reserve will begin tapering in September. As you will recall, for six consecutive days, the stock market tanked. The explanation for the tanking was this: the expectation was that the Federal Reserve will […]

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The FED’s $500 Billion/Year Mortgage Subsidy Has Backfired

Posted on August 22, 2013

WASHINGTON, D.C. (August 21, 2013) — Mortgage applications decreased 4.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 16, 2013. The Market Composite Index, a measure of mortgage loan application volume, decreased 4.6 percent on a seasonally adjusted basis from […]

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