If the Fed does raise rates later this month, the US dollar will jump significantly higher. Stocks and gold will get crunched.
Governments and central banks may try to take private gold again. They hate gold because it gives individuals a way to protect against the devaluation of paper money — inflation.
Interestingly, if you’ve heard of the Rule of 72, you should know that it works with negative interest rates too.
One of the things that has annoyed central bankers is that when interest rates are so low, there is no incentive for savers to keep money in the bank.
One side says a US Federal Reserve increase will lead to market turmoil. The other side says if interest rates don’t go up, it will lead to market turmoil.
While the stock market could correct sharply lower in the short term, the next global financial crash will stem from government bonds.
That means staying in stocks… but it also means buying one of two (or both) specific stocks, which will rise in value as stocks fall.
What if people lose trust in the ability of Government and Central Banks to protect them? The situation can rapidly go from bad to worse.
Make no mistake, the currency wars won’t have a happy ending. Years of low interest rates and money printing won’t result in a victory that anyone can be proud of.
If central banks don't give up and keep printing money to stop deflation, they will eventually get more inflation than they expect.