The weak US economy and the weak US dollar policy resulting from the Shanghai Accord meant that the Fed was unable to raise interest rates.
In today’s video update Kris looks at rising US interest rates and the knock-on effect it’s having on stock markets…
Goodfriend’s focus was to promote ‘unencumbered’ negative interest rate policy, which means getting rid of things standing in your way.
The question is, with gold having now pulled back 3.78% from the July high, what’s next? Should you lock in your gains, or have a punt?
Knowing how the Federal Reserve is organised and who’s in charge can position you to preserve wealth and even profit from the coming Fed-induced turmoil.
It’s a Tom and Jerry market. Here’s how it works… The Fed thinks the economy is recovering and makes noises about raising rates at some time in the future.
Typically, central banks use monetary policy (interest rates) to stimulate or stymie demand. It’s all about finding the right balance of growth and inflation — not too hot, and not too cold. Or as the phrase goes: the ‘Goldilocks economy’.
Best case, more of the same. Worst case…now that’s the BIG problem we’ve been building to. I think deflation is going to tighten its grip on the global economy.
Perhaps Sanders and Trump are right; maybe it’s time to take a fresh look at the power elite…and how they are running the country.
When the interest rate hike rumours grow, which will inevitably change the sentiment, gold will reverse its trend.