Commodity Trade Mantra

Posts Tagged ‘Low Inflation’

At Record Valuations - The Market is Now Too Big To Fail

When large concentration of total asset value is dependent on the market, it becomes necessary to maintain the market at all costs. The market has become too systemically important to allow it to fail. And that means policymakers have changed the function of the market. Today, the market is being used as a (false) portrayal of the underlying economy.

Inflation - The Fed's Nightmare Scenario Is Becoming Reality

Higher inflation is not a dream come true. It is the Fed’s worst possible nightmare. It will expose the error of their 8-year stimulus experiment & the Fed’s impotence in restoring health to an economy that it has turned into a walking zombie addicted to cheap money. If inflation catches fire now, with growth close to zero, the Fed will be completely incapable of controlling it.

Take Advantage of the Fed's Uncertainty - Buy Gold or a New Home

The Fed’s decision is a wash for precious metals, oil and gas prices. A rate hike would have likely caused the U.S. dollar to strengthen even further, which in turn would have put additional pressure on commodities. Home buyers who have been sitting on the fence now have a double-incentive to act: historically low mortgage rates and a possible chance at killer bargains.

Interest Rates to Remain Unchanged, Extend & Pretend Continues

The raise in interest rates has met one excuse after another and is once again looking like it will be delayed. The new “extend and pretend” date is now set for December. The FED knows they cannot raise rates & may act ignorant of the facts, but they are not! They know the economy is faulting & the global economy stands on a knife edge, just awaiting a catalyst to begin a renewed downturn.

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