Commodity Trade Mantra

Posts Tagged ‘Inflation Target’

After a War on Cash, can the War on Gold be far behind?

The global elites are using negative interest rates & inflation to make your money disappear. One solution to this is to buy physical gold. But if the government has a war on cash, can the war on gold be far behind? Probably not. Governments always use money laundering, drug dealing & terrorism as an excuse to deprive citizens of the ability to use money alternatives such as physical cash & gold.

The Fed's Measure of Inflation is Furthest from American Reality

Ben Bernanke first set an official inflation target in January 2012, aiming at 2%. Has it been achieved? Well, it depends on how you measure inflation. There are many to choose from. The Fed has chosen the one that is most suppressed and furthest from the experience of most American households. So the Fed can pretend that inflation is “too low,” whatever that means.

The Gold Price Has Been Captured By The Modern Banking System

The dynamics behind the gold market are however different now from the early seventies. This time, the gold price is likely to be driven by physical shortages in the old world, as American and European investors wake up to stagflation, their central bank’s interest rate dilemma, and the loss of physical liquidity from their vaults.

We’re Near a Major Turning Point in the Currency Wars

In the currency wars, it looks like a recent quiet period is over and war is entering a new major battle. The US dollar went from an all-time low in August 2011 to a 10-year high in mid-2015. But the strong dollar finally caught up with the US economy, which has been slowing down precipitously. There are critical turning points where a long-term directional trend is set to reverse.

The Dollar Will Not Be Overthrown in October (Part II)

The Fed’s talk about raising interest rates is making the dollar stronger, but it’s also making the yuan stronger due to the peg. China has to tighten its monetary policy by buying yuan & selling dollars to maintain the peg, at a time when China is slowing & should be easing, not tightening, policy. So finally, China threw in the towel and broke the peg to the dollar on August 11.

10 Reasons Why The Fed Won't Raise Interest Rates

The Fed won’t raise interest rates because we haven’t hit our full unemployment (moving) target. Also, the IMF warned about potential risks of a Fed tightening. Weakening of commodity prices could be bad news if it indicates global demand is weakening. The Fed is watching out for inflation, but we haven’t hit the magic 2% target yet. Here are some more reasons why.

Why We Need Deflation and Higher Interest Rates

The Fed, like central bankers elsewhere, (though slightly out of step as it recently hinted at possible future rate hikes) stays committed to a 2% inflation target as it continues a policy driven by a fear of deflation, a fear that is not supported by either good economic theory or economic history properly interpreted.

Jackson Hole: 'Tremendous' Downside Risks If Yellen Doesn't Go Full-Dovish

The 3 ways Yellen can be dovish. Full dovish goes beyond anything she has stated explicitly in her comments. Semi dovish may generate a strong initial market reaction if it looks as if it is introducing new factors into policy equation but is much more ambiguous. Contingent dovish is the argument she has put forward for a long time.

Which way is Inflation Blowing? Watch Commodities

Rapid growth of the money supply usually fuels higher rates of inflation. It’s the narrative about low inflation & weak Gold prices that enables the endless printing of money by central banks. Bubbles in the European and US bond & stock markets can be sustained in the stratosphere, only as long as inflation is “SAID” to be running near-zero.

Deflation - Phobia Set to Bring on More Monetary Inflation

Why would Inflation below 2% pose risks to the economy? Who doesn’t want to pay less for things? It is only considered a problem because there is such a huge mountain of unsound debt in the system, much of it incurred by governments, which they naturally want to ease.

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