The Yield Curve and Recession

   By Bob Shapiro

The Federal Reserve (FED) has raised interest rates 7 times during its latest tightening cycle, after almost 10 years of its previous rate suppression binge.

What tended to have happened in previous interest rate tightenings is that shorter term interest rates have risen somewhat faster than long rates, and at some point, short rates catch up to and pass long rates. This rare situation is referred to as an ‘Inverted Yield Curve.’

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Inflation Is Back, Part 7

By John Rubino – Re-Blogged From http://www.Gold-Eagle.com

Monthly economic readings tend to be full of noise and are therefore unreliable. So it’s best to save the excited assertions for established trends.

The US Consumer Price Index appears to have reached that point:

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Your Incredibly Shrinking Dollar

By Peter Schiff – Re-Blogged From http://www.Gold-Eagle.com

Over the last 12 months, the purchasing power of your dollar has dropped at the fastest rate since 2011.

According to the latest data released by the Bureau of Labor and Statistics, the Consumer Price Index (CPI) jumped by 2.8% year-over-year in May. That follows on the heels of a 2.5% leap year-over-year in April.

In other words, prices are going up. That’s not good news for people who buy stuff.

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The Dangers of Investing Based on Phony Government Statistics

By Stefan Gleason – Re-Blogged From Money Metals Exchange

President Donald Trump recently took to Twitter to boast, “The U.S. has an increased economic value of more than 7 Trillion Dollars since the Election. May be the best economy in the history of our country. Record Jobs numbers. Nice!”

“We ran out of words to describe how good the jobs numbers are,” reported Neil Irwin of the New York Times, amplified in a Trump retweet. If you believe the headline numbers, joblessness is at a generational low with the economy booming.

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Greg Weldon: Stock Market “As Overextended As Anything I’ve Ever Seen”

By Mike Gleason – Re-Blogged From http://www.Gold-Eagle.com

Mike Gleason: It is my privilege now to welcome in Greg Weldon, CEO and President of Weldon Financial. Greg has over three decades of market research and trading experiencing, specializing in the metals and commodity markets and even authored a book in 2006 titled, Gold Trading Boot Camp where he accurately predicted the implosion of the U.S. credit market and urged people to buy gold when it was only $550 an ounce. He’s a highly sought-after presenter at financial conferences throughout the country and is a regular guest on many popular financial shows, and it’s great to have him back here on the Money Metals Podcast.

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Gettin’ High On Bubbles

By Keith Weiner – Re-Blogged From http://www.Gold-Eagle.com

Back in the drug-soaked, if not halcyon, days known at the sexual and drug revolution—the 1960’s—many people were on a quest for the “perfect trip”, and the “perfect hit of acid” (the drug lysergic acid diethylamide, LSD). We will no doubt generate some hate mail for saying this, but we don’t believe that anyone ever attained that goal. The perfect drug-induced high does not exist. Even if it seems fun while it lasts, the problem is that the consequences spill over into the real world.

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Currency Exchange Value Dynamics

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

In a recent article I postulated that the dollar could lose all its purchasing power with a rapidity that will come as an unpleasant bombshell, even to those who already see inflation as society’s greatest problem in the future. The key to understanding why this may be so lies in human reactions to the monetary consequences of the next credit crisis. The undermining of the dollar as a currency affects all other fiat currencies, because it is the reserve currency and all financial markets use it as the pricing medium for commodities and for much of international trade.

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