LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Wealth Accumulation Is Becoming Impossible
By: Keith Weiner, Monetary Metals

Gold Market Reaction: Tactics For Exhilaration
By: Stewart Thomson

Yes, Gold “Just Sits There” and That’s Quite a Feat
By: Clint Siegner

Precious Metals Update Video: Gold is stuck in a sideways market
By: Ira Epstein

Effect of QE4 on the Stockmarket and Gold...
By: Clive Maund

SWOT Analysis: The Dutch National Bank Is Bullish on Gold
By: Frank Holmes, US Funds

Quick Recap of the Fed’s Foundering Follies and Our Descent into Economic Madness
By: David Haggith

The Gold Stock Correction and What Lay Ahead
By: Gary Tanashian, NFTRH

Precious Metals Update Video: Gold strong support below
By: Ira Epstein

Dollar Update (video)
By: Gary Savage

 
Search

GoldSeek Web

 
The Fed is Out of Ammo… and Options


 -- Published: Monday, 5 October 2015 | Print  | Disqus 

By Graham Summers

 

The Fed missed its chance.

 

Truth be told, the Fed should have raised rates in 2011 or 2012. Even if the Fed had an excuse not to at those times, it should have hiked them in April 2014, when we hit its unemployment rate target of 6.5% (assuming this number is correct).

 

Instead the Fed opted to keep rates at zero, as it also did in April of 2015, June of 2015, and now September of 2015.

 

Indeed, a whopping 82% of economists thought the Fed would hike rates in September. The whole market believed it too. So why didn’t the Fed do it? Just how much prepping do we need for a measly 0.10%-0.25% increase in rates after six years of ZIRP?

 

So now we’re well into 2015 and the US is moving back into recession at a time when rates are at zero.

 

The Fed’s own GDPNow measure shows that GDP grew at a measly 0.9 in 3Q15.

 

 

As Not Jim Cramer recently noted, all of the September Manufacturing data suggested a collapse in GDP.

 

 

Indeed, as Bill Hester recently noted, all four of the Fed’s September Purchasing Manager Index (PMI) readings (Philadelphia, New York, Richmond, and Kansas City) came in at readings of sub-zero. This ONLY happens when you are already 4-5 months into a recession.

 

 

In short, the economic data is a disaster, suggesting the US is entering if not already in a recession. Moreover, stocks have taken out critical support at the 50-week moving average.

 

Historically this has been THE line for bull markets. We sliced through it like a hot knife through butter last month. The market has done this twice in the last six years. Both times it was saved by a new Fed policy: QE 2 and Operation Twist, respectively.

 

 

However, this time around, the Fed's hands are tied by the fact that it is in the political cross hairs: ample research has shown that QE increases wealth inequality... and we're approaching a Presidential election in the US.

 

In short, the only thing holding the market up is hype and hope of more QE. But this is missing the point...

 

The bull market of the last six years is over.

 

Already investors have begun to realize that Central Banks have lost control of the markets. This is why they erased months' worth of gains in four days’ time.

Smart investors are preparing for a collapse NOW, BEFORE it hits.

 

Best Regards

 

Phoenix Capital Research

 

Our FREE e-letter: www.gainspainscapital.com

 


| Digg This Article
 -- Published: Monday, 5 October 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.