Our comments on the Fed rate increase and Yellen’s comments
Doc and Chris Temple are with us to discuss our thoughts on the rate increase and Yellen’s press conference. There was very substance in our eyes but we are seeing some market moves as well as gold getting hit hard possibly due to a more hawkish sounding Fed. Don’t read too much into the forward guidance from the Fed as they will continue to remain data dependent.
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Also here are the consomme by Kevin O’Leary regarding the mentality in Europe.
Agree with you. The Trump victory is merely glossing over (temporarily) a very morbid economic picture. The old problems we’ve been talking about here (global debt swamp and associated monsters) are still in play and all this current optimism is little more than hope. However, that does not mean markets can’t keep going up for longer than many think possible. There is economic reality – and there are the markets. They have been disconnected for some time, so why expect them to become re-connected quickly?
Best comment of the day.
OH I DO LIKE A LADY WITH BALLS……………
http://www.zerohedge.com/news/2016-12-14/congresswoman-says-us-arming-isis-introduces-bill-stop-it
Tulsi’s quite a gal Tony!
IT, any ship in the storm will do, but you need to meet a woman who smokes cigars!
A government using inflation to allow debt-run government spending is IMMORAL.
Even realizing that a government uses inflation to produce hidden taxation, any responsible person must also realize that real growth for the economy must exceed inflationary growth plus debt growth, or one will produce a debt spiral of death.
Those think gold is going to do a double bottom, look at the monthly chart. There is nothing to support that call except pure hope. the path of least resistance at this point points to an eventual move down to the rising 200 month MA (currently around $900). Gold might bounce off the lower Bollinger band on the monthly chart, but you are in absolute denial if you don’t see $900 as a realistic target now.
That was an absolutely incredible sucker’s rally. It did its job perfectly and reset sentiment for the next leg lower.
The Fed has completely tooled gold bugs at least until $900. Gold needs to reverse hard before months end to repair the monthly chart IMO. The odds of that happening with the BoJ bending over with their pants down for the Fed are 0.
Appreciated Doc’s very ‘insightful’ comments about different times is very true. We’ve never been where we are now and so the future can’t reflect the past, no matter what one does from a comparison aspect. Spot on Doc!
So Yellen apparently said that there will only be a gradual rise in interest for the foreseable future. Is she implying perhaps only a single rate rise next year, possibly in december again? If so could this become the status quo in how rate hikes are implemented?
Its funny, here in Australia the general consensus is that the US is now back at full health, economically speaking and maximum employment has been achieved. Notwithstanding that anyone can easily obtain official government data that clearly states actual unemployment being much higher than what is reported.
We aussies are so ignorant, we live in a world of delusions of grandeur. We are convinced that inflated house prices, resources in the ground and burgeoning debt will allow us to spend, buy and print our way to prosperity and everyone lives happily ever after.
O’Leary’s comments about the big money thinking in Switzerland in profound. Here’s another twist on the crazy thinking driving our markets: http://investmentresearchdynamics.com/historic-market-blow-up-is-brewing/
We are number one in education:
http://www.zerohedge.com/news/2016-12-14/education-pisa
Apity it is in cost, not quality.
After Raising Rates Once During The Obama Years, The Fed Promises Constant Rate Hikes During The Trump Era (http://theeconomiccollapseblog.com/archives/after-raising-rates-once-during-the-obama-years-the-fed-promises-constant-rate-hikes-during-the-trump-era)
I think that title says it all. Why did Bernake and Yellen not dare to raise rates in the last eight years? Because a globalist-supporting Democrat was in office. Why is Yellen raising rates now? Because it’s been at 0% for too long and a Republican non-elite-minion is about to take office.
I fully expect the central bankers around the world to make Trump’s presidency as difficult as possible, raising rates, ruining bonds, fostering economic failure, hoping for a Hoover-like mentality from Trump and a FDR-like return to the status quo.
But the job numbers are faked.
The only logical conclusion is that job numbers should not be used as a measure to evaluate the economy.
Inflation numbers are faked. (They are kept low, in order to minimize raises in social security and entitlements.)
GARBAGE IN produces GARBAGE OUT in any measurement and evaluation system.