Are Banks Finally Ready To Start Lending?

In normal times, today’s combination of record low interest rates and massive infusions of capital into the banking system would ignite the mother of all expansions. That it hasn’t has confused the economists whose textbooks clearly state that it should. And it has convinced the Fed to just keep upping the ante with QE after QE.

Read more...

Price inflation approaching

There is some evidence in the UK of a pick-up in consumer spending. There are two likely factors behind this, the first perhaps being seasonal, aided by the fine weather. The second is less obvious, but combines with the first to encourage purchases of big ticket items; and this is cheap consumer finance coupled with growing expectations of higher interest rates in the future.

Read more...

Gold Nears 10% Monthly Gain Ahead of Fed Decision as US Economy Surges, Inflation Flatlines

The price of wholesale gold fell back to $1320 per ounce Wednesday lunchtime in London as new data showed the US economy expanding faster-than-expected. Second quarter GDP rose 1.7% in real terms from a year earlier, the Bureau of Economic Analysis said.

Read more...

“Trend Still Bearish” for Gold Price, “Global Selloff in Risk Assets” Sees Nikkei Enter Bear Market

The spot gold price rose as high as $1394 per ounce during Thursday’s Asian trading, before easing back by lunchtime in London, as European stock markets also fell, following selloffs in the US and Asia. Silver dropped back below $21.90 an ounce after briefly touching $22, while other commodities were also down on the day.

Read more...