Commodity Trade Mantra

Posts Tagged ‘Fed Funds Rate’

Inflation, US Dollar, Gold & the Interest Rate Action by the Fed

The evidence of inflation is starting to emerge. When will the markets begin to see that the Fed is not serious about nipping inflation in the bud? We don’t know the answer but any rate increase could be the one that looks too timid and too late compared to the inflation data. As the markets begin to take note, the dollar will weaken and gold will once again behave like an inflation hedge.

Silver Seems Ready to Break Out Off Significant Support - Buying Opportunity Beckons

After taking a look at the ups and downs of the silver market pre- and post-election, there seems to be a major opportunity developing. Also the fact that the silver price is now below a rising 200-day moving average suggests a high probability that it will turn up soon. We maintain our view that silver prices will then return to a modest bull market.

Gold Prices & it's Relationship with the Expansion of Fiat Money

Not only is Fiat Money Quantity, continuing to grow above its long-term trend, but it appears to be accelerating. The inflationary implications are obvious. Gold is already under-priced to a substantial degree. Further expansion of FMQ will eventually lead to a complete reassessment of the price relationship between fiat dollars and physical gold, to gold’s benefit and the dollar’s detriment.

A Technically Reasonable Correction in Gold Prices

For those who persist in looking at gold as an investment, the fall in gold prices in May is simply within the bounds of a normal correction. But they would be missing a vital point & that is by buying gold they are selling an inferior form of money. Not only is the dollar already demonstrably overvalued when priced in gold, but there is a growing inevitability of a further, substantial declines.

A $14 Handle on Silver Prices... Again

The fundamental silver price fell about a dime this week, putting the market price under the fundamental. While that’s a better place to be, if one is a silver bettor, we wouldn’t bet either way on silver right now. The action depends on whether momentum continues to carry the price lower, or whether there’s a sharp rebound as speculators jump to the other side.

Silver Is The Most Manipulated Market In History

The anti-gold / silver propaganda is reaching epic levels again. It also happens to coincide with another multiple-day run on the gold in GLD and a record-breaking run up in the paper/gold ratio on the Comex. When history looks back on this period, one of the biggest official frauds will be the Fed’s empty threat of raising interest rates to help keep a lid on the precious metals.

The Economics of a Stock Market Crash

To mainstream financial commentators, blame for a crash is always placed on remote factors, such as China’s financial crisis, and has little to do with events closer to home. Analysis of this sort is selective and badly misplaced. The purpose of this article is to provide an overview of the economic background to today’s markets as well as the likely consequences.

Watch As All the Bond Rats Jump Ship before FOMC Meeting

The FOMC Meeting this week is not just any FOMC Meeting, but the one where the Fed gives its quarterly outlook, forecasts & Yellen is asked a bunch of difficult questions by economists regarding FOMC Policy. The week is all about positioning or the De-Positioning taking place right up until the last minute of this important Fed Meeting.

The Real Reason the Fed Has To Raise Rates in June

If we assume the same continuous trends regarding employment, GDP, retail spending etc. that US has been producing for the last 12 months, then things are going to get real uncomfortable for the Fed and markets come the Sept FOMC Meeting. Markets should actually be begging the Fed for a June rate hike.

What they say on Wall Street - Don’t Fight the Fed

Simply Google what they say on Wall Street – “Don’t fight the Fed,” and you’ll get 468 million results. Does the Fed Really Create the Boom-Bust Cycle? When the Fed is printing, get your money in stocks. When they take away the punchbowl, turn out the lights and sell your stocks—the party’s over.

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