Tag Archives: interest rates

Getting from point A to point B in the real world can be quite simple. In the investment world, the roadways are constantly shifting. Changes in interest rates, tax policies, unemployment, fiscal initiatives can represent obstacles and navigating these winding paths can require your very own GPS advice. Words: 494

When I look strictly at what’s actually going on in the world, I have to think that gold will go to at least $2,000 in this cycle and there are very credible scenarios in which it could go to a multiple of that number. Why am I so bullish for the yellow metal? Let me tell you why. Words: 469

Given what the charts below show it’s all-but-certain that the Federal Reserve will raise interest rates in December.

I'm bulled up on gold. [I think it] could rally by 50%. Here's why.

I believe we’re much more likely to see another round of quantitative easing before we see a rate hike. John Williams of the San Francisco Fed hinted at this when he said the Fed could “clearly” lower rates again if needed, and use other tools “if necessary.”

The US Federal Reserve has been increasingly hinting that it would raise its policy rate at its next meeting, which is scheduled for December but their communications have been sloppy, erratic and contradictory. To get a sense of where the Fed might go a closer look at some of the key underlying economic forces, however, it is clear that there are 5 key reasons that the Fed is unlikely to raise rates anytime soon.

I see no way the Fed can raise interest rates this year, I think the earliest rate increase is probably the end of 2016. I expect the Fed’s next step will be easing, not tightening – which of course is very bullish for gold!

Believe it or not, what follows is supposedly the transcript of a recent speech by the outspoken Gustavo Laframboise-Pierre, Global Director of Statistical Creation at the European Central Bank, to the Federal Reserve Bank of Kansas City’s “Economic Symposium”. It provides considerable inside insight into what is going to unfold regarding interest rates.

The Fed is beginning to wake up to the fact that there is no easy escape from its artificial zero interest rate policy. The Fed will not be able to move very far off of the zero-bound range before the yield curve inverts and the U.S., and indeed the entire global economy, melts down. This means real yields will become more negative, the U.S. dollar will lose more of its purchasing power and economic instability will intensify over time—the perfect fundamental backdrop for rising gold prices.

This article addresses what the mainstream press has been ignoring, and why the Fed is reluctant to raise interest rates.