There are plenty of comments about the death of the US dollar as the world’s reserve currency. These tend to appear when the dollar index declines. However, these “dollar death” reports are greatly exaggerated and fail to answer a simple question: What is the alternative? If you want to bet on the euro as a … Continue reading The Fed Is To Blame For The Dollar’s Recent Weakness. Still, There Is No Fiat Alternative. →

Inflation is rising, but it has nothing to do with tariffs. It has everything to do with the Fed’s policy and the Treasury’s uncontrolled spending. The Core PCE Price Index, which excludes food and energy, rose by 0.2% this month and remains stubbornly high at 2.8% annualized. The headline PCE Price Index increased by 0.3%, … Continue reading Will the Federal Reserve use the excuse of tariffs for the inflation they create? →

The two pillars that support the entire modern monetary system—that central banks have a clear mandate for price stability and that they are independent from governments—have crumbled over time. For years, people have questioned the independence of central banks. However, from 2020 onward, this independence has virtually vanished. A monetary authority that does not consider … Continue reading The Fed’s mandate cannot be government excess. →

The Federal Reserve decided to cut rates by 50 basis points despite what Chairman Powell considers “no risk of a recession or downturn,” a “solid economy,” and a “strong job market.” After ignoring the impact of monetary aggregates and the warning signs of inflation, the Federal Reserve has breached its price stability mandate for three … Continue reading The Fed’s Last Sign of Independence May Be Gone →