Interest rates backed up last week. The 30-year T-Bond, which was 1.19% on August 4, closed at 1.44% on Friday (August 14). The 10-year T-Note closed at 0.71%. It was 0.52% on August 4. The CPI showed up with a +0.6% M/M rise (7.4% annual rate) for July. That pushed the Y/Y rate to +1.0% from +0.6% in June. Clothing prices rose +1.1% M/M in July. They had risen +1.7% …Read More
Tag Archives: Bankruptcies
Money Explodes; Gold Glitters; The Recovery Slows
I often get asked why the price of gold is rising, and, as a follow on, will it continue. The price of gold has always had a significant correlation (80%) with the Fed’s balance sheet (i.e., the “money supply”), especially during periods of significant balance sheet expansion (money printing). The table shows the Y/Y change in the money supply of the western world’s major economies. The U.S., clearly the largest …Read More
