Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

GoldSeek Radio: Gerald Celente and Wolf Richter, and Chris Waltzek

SWOT Analysis: Tightened Supplies Could Be Good for Copper
By: Frank Holmes

Technical Scoop - Weekend Update Mar 19
By: David Chapman

The Wealth Machine That Rising Interest Rates Create And The Conflict With The National Debt (Part 2)
By: Daniel R. Amerman, CFA

2018 Reversal Dates for Gold, Silver and Gold Stocks
By: Przemyslaw Radomski, CFA

Standing Ready to Lease Gold
By: Keith Weiner

Is The U.S. Economy Really Growing?
By: Peter Cook, CFA

Pro-govt. Turkish paper reprints Manly's RT exposure of gold price suppression
By: Chris Powell

Yet Another Chart That Screams “Look Out!”
By: John Rubino

Bonds, Inflation And Amigos
By: Gary Tanashian


GoldSeek Web

Fed stuck between hard place and a grenade

By: Sol Palha, Tactical Investor

 -- Published: Thursday, 3 March 2016 | Print  | Disqus 

He who trims himself to suit everyone will soon whittle himself away.
Raymond Hull

The Fed is stuck in between a hard place and a grenade, given this option, they will choose the hard place as unless you are looking for a one-way to ticket to nowhere you won’t choose the grenade. The Fed has nowhere to go; there is only one option available inflate the money supply or die trying to.

Central bankers worldwide have already started to work on the next level of QE. It’s called negative interest rates, and it’s just a matter of time before it comes to the U.S.  The U.S will hold out for a bit longer as they want to maintain the illusion of a somewhat stronger currency. Remember this is a race to the bottom, and so the idea is to finish last instead of first.  The Fed is already stalling; this is clear signal as any that they are already planning the next line of attack. And please do not fall for that mumbo jumbo that the Fed is panicking; having no choice and panicking is not the same thing.  The Fed and its friends always win. Those that fight the Fed have a short life span. They have had decades to fine tune this nefarious art of fleecing the masses, and they are experts at it now.  Those at the top have already used a vast portion of their paper wealth to secure valuable hard assets, so if the entire market were to collapse tomorrow, they would not lose anything. In fact, they will stand to make even more as they will come in and purchase everything in sight, for pennies on the dollar. However, the markets are not going to collapse tomorrow, one day in the future they might, but that day is not tomorrow.

The war on Interest rates is on, and you cannot fight a trend in motion, so the U.S will have no option but to join the battle.  The chart below clearly illustrates how the world has embraced the concept of negative rates


We have provided many factors over the past few months indicating that this recovery is a hoax, but instead of fighting the trend, we have taken the unconventional view, that despite the economic recovery being a hoax, the markets are destined to trend higher.  The weapon of choice now is to throw increasingly large sums of money at the problem, and this works because the masses are not ready to fight.  The can will be kicked down the road until the road ends or the can becomes so heavy that it’s impossible to kick it any further.  We are still a long way from that point. The debt is going to increase to a level that will one day be labelled “as insanely unimaginable”.   Sounds crazy; well then tell us what you make of the fact that it took over 100 years to get to $1 trillion, and now it surges by that amount every year.


The war on interest rates means that deflation will be here for longer than most expect, so it will be interesting to see how commodities in general, especially the precious metal’s sector hold up.  Gold is off to a pretty good start, but it remains to be seen if a breakout past the strong zone of resistance at $1350.  It needs to put in a pattern of higher lows which it has not managed to do since 2012.  The next pullback will be interesting, for it leads to a higher low, and then this recent breakout might have some muscle behind it.

Low rates are positive for stocks, and since we are in the midst of a negative rate battle, the odds are in favour of this market trending higher.


Do not trust to the cheering, for those persons would shout as much if you and I were going to be hanged.
Oliver Cromwell

Sol, Palha,

| Digg This Article
 -- Published: Thursday, 3 March 2016 | E-Mail  | Print  | Source:

comments powered by Disqus - Visit the Tactical Investor Web Site


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of 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 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

The views contained here may not represent the views of, its affiliates or advertisers. 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, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.