Faber News Flow

Yesterday the Federal Reserve Bank of New York (New York Fed) announced that the giant money spigot it turned on for Wall Street on September 17 would be growing exponentially beginning today. The New York Fed will now be lavishing up to $120 billion a day in cheap overnight loans to Wall Street securities trading firms, a daily increase of $45 billion from its previously announced $75 billion a day. In addition, it is increasing its 14-day term loans to Wall Street, a program which also came out of the blue in September, to $45 billion. Those term loans since September have been occurring twice a week, meaning another $90 billion a week will be offered, bringing the total weekly offering to an astounding $690 billion. It should be noted that if the same Wall Street firms are getting these loans continuously rolled over, they are effectively permanent loans. (That's exactly what happened during the 2007-2010 Wall Street collapse: some teetering Wall Street casinos received, indi...

At the beginning of August, It was discussed the following tweet from the President: What the Market wanted to hear from Jay Powell and the Federal Reserve was that this was the beginning of a lengthy and aggressive rate-cutting cycle which would keep pace with China, The European Union and other countries around the world.... — Donald J. Trump (@realDonaldTrump)  July 31, 2019 "But if it is the 'strongest economy ever,' then why the need for aggressive rate cuts which are 'emergency measures' to be utilized to offset recessionary conditions?" The following chart should quickly put that claim to rest. While the claims of an exceptionally strong economy rely heavily on historically low unemployment and jobless claims numbers, historically high levels of asset prices, and strong consumer spending trends, there is an underlying deterioration that goes unaddressed. For example, while reported unemployment is hitting historically low levels, there is a swelling mas...

The decelerating growth and/or outright decline of the working age population is clearly visible in every part of the world.  This article details where the deceleration began and the extent of the decelerations / declines. The reason this is so important is that the majority of economic growth is driven by the rising demand represented by the growth of the working age population (and their increasing quantity of employed persons). But not just the rise of any population, but those of means, those with savings, and those with access to credit.  This growth drives mega infrastructure projects, buildouts of supply chains, increased production, and ultimate rise in consumer demand.  Absent that population growth (particularly among those with means) governments have been "building bridges to nowhere", "building ghost cities", providing "lower for longer", ZIRP, NIRP, and monetizing debt, etc. etc.   This is all ultimately a fools errand only worsening the ult...