QUESTION: I was taking to a fellow attendee at your Princeton conference who has been following you since the 1980’s. He said when you write the Fed is telling banks to “re-calibrate”, this is not speculation or opinion, but fact based upon real sources. Is this true? ANSWER: Yes. I never speculate like that. If […]

Microsoft has collaborated closely with US intelligence services to allow users’ communications to be intercepted, including helping the National Security Agency (NSA) to circumvent the company’s own encryption, according to top-secret documents obtained by the Guardian. http://www.guardian.co.uk/world/2013/jul/11/microsoft-nsa-collaboration-user-data After digging into Microsoft’s Windows 8, I became very alarmed that the Start Screen was reporting back to […]

The US government reported a budget surplus of $116.5bn in June, the most in five years. This is part of the trend of stagflation – rising costs with rising prices and slower economic growth. So much for hyperinflation.  http://www.bbc.co.uk/news/business-23280737

There are a group of Senators who want to bring back Glass-Steagall separating commercial banks from investment banks. That was removed by Goldman Sachs’ Robert Rubin under Bill Clinton. Nevertheless, the Fed is already advising banks that they will not insure losses on the trading side. The Fed has been advising banks they will only […]

How to use the Arrays has been added to the Models Menu https://www.armstrongeconomics.com/the-princeton-models-and-methodologies-a-users-guide/how-to-use-the-forecasting-arrays/

QUESTION: Are  short term US bonds (not more tan 2 years) a safe place to be? Having cash is lethal if the bank goes under. ANSWER: Yes. However, I would stay very short-term because rates will rise faster than most suspect. So try to stay in 1 year of less TBills. Keep in mind that debt is […]

Interest Rates are not actually within the scope of the Fed’s power. It can create a base rate, but everything from there is indirect. That is why the Fed bought in 30 year bonds. It was hoping to create a shortage of long-term to reduce mortgage rates and encourage capital to buy mortgages. Everything they […]

In the wake of Wednesday’s surprisingly questioning of Fed Chairman Ben Bernanke, he has unleashed a massive selloff in the US dollar by giving the reverse impression that the Fed may exit from monetary accommodation and easing. Bernanke stated that the Federal Reserve was failing on both of its core mandates, and that inflation was too low and unemployment too high. […]

Snowden is not the first to reveal what the NSA has been up to. I have heard this being commented on in meetings on the Hill as a matter of fact. The American press prefer to slander Snowden pointing to his girlfriend and the fact he dropped out of high school. Perhaps he is supposed […]

  One of the most fascinating aspects of market/economic behavior is how the majority MUST be wrong in order to fuel the movement. There are loads of articles and forecasts questioning the recovery and how the world will collapse into a black hole. But if everyone is short dollars/long gold it will never happen. Tons […]