Below are two must see charts and an important quote about the limits of monetary policy.
Here is a portion of today’s note from Art Cashin: A Little Wisdom From The Past –
But a note should be made here that, while money policy can do a great deal, it is by no means all powerful. In other words, we should not place too heavy a burden on monetary policy. It must be accompanied by appropriate fiscal and budgetary measures if we are to achieve our aim of stable progress. If we ask too much of monetary policy we will not only fail but we will also discredit this useful, and indeed indispensable, tool for shaping our economic development. …
Those are the words of the late, great William McChesney Martin, the longest serving Chairman of the Federal Reserve, serving under five presidents, from Truman to Nixon (H/T – Peter Boockvar).
Overnight And Overseas – With the exception of Tokyo, most Asian markets saw selling with Shanghai really getting clobbered.
Things shifted sharply when Europe opened. Banks and financials got a big boost when Lloyds declared a special dividend. Part of the European strength was catch-up to the U.S. afternoon rebound.
In currencies, the yen weakened while the pound reversed high. Most safe haven trades are being undone. The Euro is up a smidge. U.S. futures are a touch higher.
Consensus – Initial Claims will be carefully watched. Several Fed speakers but the new party line seems to be “We don’t have a ‘course’. We are data dependent so we are open to anything at any meeting.”
Crude will remain at center stage and the G-20 prepares to convene. Stick with the drill – stay wary, alert and very, very nimble.
Here are a couple of key charts that all KWN readers around the world need to see.
The first chart is from the Wall Street Journal and it shows inflation holding steady or inching up in developed countries.
When inflation begins to accelerate higher, this will be extremely positive for both gold and silver.
The second chart exposes the many incorrect GDP forecasts from the IMF. The black line shows the actual real world GDP vs the IMF’s many incorrect forecasts (see remarkable chart below).
***KWN has now released the extraordinary audio interview with Dr. Marc Faber, where he discusses the greatest threat to the world, his stunning predictions for the rest of 2016, gold, and what investors can do with their money right now, and you can access it by CLICKING HERE OR ON THE IMAGE BELOW.
Also, the long awaited audio interview with London metals trader Andrew Maguire has now been released and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO RELEASED: This Chart Is The Key To A Possible Short Squeeze In Stocks CLICK HERE.
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