Posted on 06/17/2021 10:48:43 AM PDT by BenLurkin
The Federal Reserve surprised the market Wednesday with projections that future interest rate hikes will come a bit sooner than expected. Gold bugs in particular were disappointed.
The price of gold fell 4% Wednesday and was lower again Thursday, falling below $1,800 an ounce for the first time since early May. While it's true that gold often rises along with inflation fears, Wall Street may have already priced in this scenario. Investors appear to be selling gold now due to expectations that the Fed is taking the threat of inflation more seriously and may move more aggressively to tamp it down.
Higher rates would be bad for gold, which would lose its luster compared to other assets including bonds that tend to benefit in a rising rate environment.
Naeem Aslam, chief market analyst with AvaTrade...said gold is now of "less attractive interest" and that if the price remains below $1,800 an ounce, the yellow metal could be vulnerable to an "intense sell-off."
(Excerpt) Read more at cnn.com ...
Gold and Silver after a great collapse will be worth nothing. Food, Ammo, guns, secluded land will be in demand. No one will sell any of those to get gold and silver.
Living itself will be day to day.
“Interest rate hikes mean a bigger portion of the federal budget will need to be allocated to interest payments “
That used to be the case, but now the feds are mostly borrowing from themselves.
a 6 point basis rise is not catastrophic , now of they raised rates to what they need to be say, 800 basis points then that is another situation.
Can’t then no budget, bond default and then government collapse
“a 6 point basis rise is not catastrophic , now of they raised rates to what they need to be say, 800 basis points then that is another situation.”
I prefer inflation to deflation. I did fine at 14% inflation.
Gold and Silver falling because of interest rates is a regular riot. That’s the cover story. Only.
COMEX types are covering their short sales at prices they prefer, while they still can.
In about a week, bank rules change, and gold becomes a “tier 1” asset, at Basel III.
I’m to understand that this pulls the rug out from under banksters that *say* they have a supply when they do not.
State and local governments (and their taxpayers) looking to finance large long-term projects also get screwed...
Look up Grace Report (ordered by Reagan in the 1980's).
All (ALL!) of the 1040 money the IRS collects pays off the national debt. Has been the case since creation of the FED, always will be as long as the FED exists (note: not much longer).
All Federal programs are paid from new money, created for the purpose, by the private non-government non-federal non-reserve Federal Reserve.
THat's why it does not matter a whit if a program is $1T or $100T, all it does is increase the amount of interest we owe that we'll never pay (not because we can't, although we really can't, but because the system is designed to only have an increasing debt for which the banksters collect interest for).
The FED overnight rate hit 18% at one point didn’t it? 13%, 16%, that’s academic or a moot point regardless.
They can’t ever raise interest rates again. No way. They can save the dollar, or they can save the markets, but they can’t save both. Even a return to historical rates of say 4% or 5% would be “game over”. It would blow up the government.
That was some observers take, at least that appeared to be the case back in the 2008-2011 debacle, and back then the appalling debt and deficits weren’t quite as bad, they have only ballooned since then. Something like 25% of all dollars in the world since 1792 were “printed” in just the last year.
Were interest rates normalized the national government would have to allocate every penny they take in towards interest payments on the debt. No money for anything else in the “budget” (that they haven’t passed in what, 10 years now?). No military or social security or anyrhing. Now you know why they don’t talk about such things publicly.
That is always the “TILT” signal in any national economy. Once they can’t service their bond interest payments on time things quickly get interesting. No more “90 days net” for imported goods, it’s cash on the barrel head only. Hard currency preferred. Nobody wants to lend money to deadbeats, not at 0.5% for 30 years anyway.
The real interest rate is strongly negative right now and has been for a long time.
The gold market is rigged, it should be north of $5000 by now, easy.
when I hear about the Fed speaking, I think about this:
The Man Who Taught His Asshole to Talk
(aka “The Talking Asshole Routine” from Naked Lunch)
William S. Burroughs
Did I ever tell you about the man who taught his asshole to talk? His whole abdomen would move up and down you dig farting out the words. It was unlike anything I ever heard.
This ass talk had sort of a gut frequency. It hit you right down there like you gotta go. You know when the old colon gives you the elbow and it feels sorta cold inside, and you know all you have to do is turn loose? Well this talking hit you right down there, a bubbly, thick stagnant sound, a sound you could smell.
This man worked for a carnival you dig, and to start with it was like a novelty ventriliquist act. Real funny, too, at first. He had a number he called “The Better ‘Ole” that was a scream, I tell you. I forget most of it but it was clever. Like, “Oh I say, are you still down there, old thing?”
“Nah I had to go relieve myself.”
After a while the ass start talking on its own. He would go in without anything prepared and his ass would ad-lib and toss the gags back at him every time.
Thank you. In a year from now we will likely be on the quantum financial system which will be backed by gold. Do not sell your gold. The Federal Reserve won’t even exist.
No one will sell any of those to get gold and silver.
But we will need barter. What if you don’t need guns, seeds or toilet paper but you want a piece of farm equipment? Gold and silver will never loose its value.
“LESSON LEARNED - so long as the police and military are paid in dollars as the Legal Tender currency in this country you’d better have some on hand to feed yourself and your family. It ain’t going away no matter how devalued it becomes. Legal tender laws WILL BE enforced.”
would those merchants still take euros at a favorable exchange rate, or did bad money completely drive out good ?
“In a year from now we will likely be on the quantum financial system which will be backed by gold. Do not sell your gold. The Federal Reserve won’t even exist.”
In one of the infinite parallel universes probably.
Not in this one.
Of course we will.
The Federal Reserve is on life support. Trump folded it into the Treasury Department but did not get to drive a stake in its heart before he temporarily left DC. But it will happen.
Heeey, and I thought you were a permanent member of the 20%. You’re waking up! 😆
I'm sorry. I didn't think that the </sarcasm> tag was necessary. My bad.
Which will come as a surprise to Trump, Congress, the Treasury Department, the Federal Reserve Board of Governors, and the rest of the non-Q world.
Sorry, but you have no credibility regarding the quantum financial system. You posted "any day now" for it to go live almost four months ago.
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