Craig Hemke – Are Central Bank Policies Truly Helping The Little Guy Or The Economy?

Craig Hemke, Founder and Editor of TF Metals Report, joins us for a wide ranging discussion on the key effects to the markets, economy, and consumers as a result of ongoing central bank policies.  We start off recounting how the Fed put the US economy and other central banks on this experiment of massive injections of liquidity through quantitative easing (QE) 13 years ago, and now is trying to exit the process and hike the Fed funds rate to temper inflation, mute demand, without crashing the markets.  Craig points out that most of the general equities are still held by the top 10% income earners, and that the inflation created from all this liquidity is most negatively impacting the middle income to lower income citizens, that got the least benefit from the last 13 years of these policies.


As we continue to see the stagflation backdrop develop with persistently high inflation, high energy prices as a tax on everything, a slowing economic growth outlook for GDP so far in 2022, and changes coming the labor markets where company’s are starting to layoff workers, Craig asks: “How is any of this really helping the little guy?”


Next we review the possibility at that after this current rate hiking cycle plays out,  and the Fed is forced to pause or reverse course, that they’ll likely be thrust into being the buyer of last resort once again in the bond markets, as there is no good rationale for holding treasuries if the coupon yields are being steeply wiped out by higher inflation.  We wrap up with a discussion of if there could be a rotation out of bonds and into the precious metals as investors seek ways to find shelter from the storm and preserve their purchasing power.


Click here to visit Craig’s site, TF Metals Report.

    Jun 16, 2022 16:02 PM

    Chrystia Freeland details $8.9B in measures to tackle affordability in first major speech since budget

    Peter Zimonjic · CBC News · Jun 16, 2022

    Deputy Prime Minister and Finance Minister Chrystia Freeland is delivering her first major speech since the budget today, outlining $8.9 billion in financial supports her government has introduced to help Canadians deal with rising inflation.

    “We know that Canadians are worried about inflation and that they’re asking what their government is going to do about it,” Freeland said in a media statement.

    “That’s why we have a new Affordability Plan — $8.9 billion in new support this year — that is going to put more money in the pockets of Canadians at a time when they need it most.”

    “Conservative leadership candidate Pierre Poilievre has accused the Bank of Canada and its current governor, Tiff Macklem, of worsening inflation through its pandemic-era policy of quantitative easing. ”

    Freeland says recent criticism of the Bank of Canada is ‘economically illiterate’

      Jun 16, 2022 16:04 PM

      It actually seems like Freeland is the one that is “economically illiterate” by suggesting the way to help Canadian citizens with inflation is to create more magical money from nothing, and then increase the money supply futher to send helicopter money to people and businesses. This is the actual cause of inflation and it will only make things worse longer-term, just like quantitative easing has in every country that has tried it.

      Jun 16, 2022 16:18 PM

      Hi Ex, The liberal party in Ottawa are desperate, we just had an election about one week ago for The Premiere of Ontario, Canada’s most populous and prosperous province. The Liberal Party suffered a major defeat at the hands of Doug Ford and The Conservatives. The liberals only got eight seats! LOL! The Liberal Party which now runs our Federal Government can see the writing on the wall. Their policies have really upset many of the public, when we get a Federal election, they will be judged. DT

        Jun 16, 2022 16:51 PM

        Yeah, the whole thought process there was so upside down whereby giving away money by creating more money was going to help with inflation. Ridiculous!

        It reminds me of where the braindead leftist politicians in California jacked up taxes for nanny state policies on all the fuel making gas prices ridiculously high, and now want to cut a rebate check back to people for the high gas prices using more government money. Their policies created the problem, and now their new policies are gonna create an even larger problem. Stunning incompetence.

        Jun 16, 2022 16:40 PM

        Great statement DT, I agree fully that the pendulum has swung, it is inevitable that they will loose their momentum, probably why they have increased the drivel they live by.

      Jun 16, 2022 16:07 PM

      Canadians are more worried about Christian Freeland than they are about inflation.

    Jun 16, 2022 16:25 PM

    The pendulum, don’t forget the pendulum it has been swinging for many years to the left, it is now correcting and it will be swinging for many years to the right. It was hard to stop on the left side and it will be as equally hard to stop on the right side. DT

      Jun 16, 2022 16:56 PM

      Yep, the pendulum swings on!

      Jun 16, 2022 16:03 PM

      The pendulum, in simple harmonic motion, spends the most time at the extremes, either left or right. I moves the fastest and spends the least amount of time in middle, or “the happy medium.” And so it goes, unfortunately in politics.

    Jun 16, 2022 16:36 PM

    Runaway Inflation Hurting South Florida Retirees And Delaying It For Many More

    Joan Murray – June 16, 2022

    “Runaway inflation is hitting South Florida retirees and those who would like to retire especially hard. Some are looking to return to work and others can’t retire because costs are soaring – from food to gas to rent.”

    “The stock market plunge is hitting retirees in the wallet. According to the Center for Research Retirement, the selloff has erased nearly $3 trillion from retirement accounts, including 401ks and IRAs.”

    Jun 16, 2022 16:40 PM

    Newspaper headlines: Warnings of ‘pain ahead’ with inflation to hit 11% (in UK)

    BBC News – 06/16/2022

    Jun 16, 2022 16:44 PM

    Reaching for falling knife, took a starter position in GBTC today at $13.01. All the pundits out now talking Ponzi scheme. Same people said same thing when Bitcoin went from 600 to 800. Gold did relatively nothing, while Bitcoin peaked at 60K

      Jun 17, 2022 17:59 AM

      Good luck in the crypto trade Buzz. I’ve been debating doing something similar by picking up some GBTC, but was waiting to see if Bircoin may briefly dip below $20k. It got down near it in afterhours trading one night this week but then had vaulted back above $22k when the markets opened. I’m considering taking a small speculative punt on it soon though.

    Jun 17, 2022 17:32 AM

    Just looking for a tradeable bounce, as meanwhile UVXY settles down to reposition