Commodity Trade Mantra

Posts Tagged ‘Raising Interest Rates’

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.

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 Fed Can’t Raise Interest Rates, But Must Pretend It Will

The Fed must succeed in continuing to postpone rate hikes into the future without breaking peoples’ expectation that rates will rise at some point. It has to send out the message that rates will be increased at, say, the forthcoming FOMC meeting. But, as the meeting approaches, the Fed would have to repeat its trickery, pushing the possible date for a rate hike still further out.

Beating Inflation Could Get Even Harder

Financial repression basically means ensuring savers can’t beat inflation. When savers lose out, debtors win. And our government is one of the biggest debtors around. The classic tools of financial repression include encouraging positive inflation, holding interest rates down below that level & limiting the options for savers looking to maintain their standard of living.

Keeping the Low Interest Rates Bubble-Boom Going

A normalization of interest rates, after years of excessively low interest rates, is not possible without a likely crash in production and employment. If the Fed goes ahead with its plan to raise interest rates, times will get tough in the world’s economic and financial system. Why then do the decision makers at the Fed want to increase rates?

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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