2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 368.29

+0.6%

Nov 7 4:00 PM EST

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To: TobagoJack who wrote (94700)	9/17/2012 6:36:23 PM
From: elmatador	1 Recommendation Read Replies (2) of 217605

Could Fed Miscalculations Lead to $10,000 Gold? miscalculations by a bickering Congress in tackling the $16 trillion federal debt or avoiding the "fiscal cliff" might cause chary foreigners to rethink lending to the U.S. at rates near zero. Absent serious belt-tightening, America probably would inflate its way out of debt. For every 1% increase in rates that would be demanded under such circumstances, $100 billion would be added to the budget deficit. In normal times, the foreign lenders would demand at least 3%, says Regalia. Minerd frets about the Fed's ability to reduce its swollen $2.9 trillion balance sheet if rates suddenly were to rise. Because the assets have longer-term durations, their market value immediately would tumble. If rates rose 1%, the Fed would have a $150 billion capital deficit, he says. This would have negative ramifications for the dollar. Minerd says the über-wealthy have been migrating toward hard assets like gold, real estate, and art. Every portfolio should be partially composed of such assets, he asserts. Is yours? online.barrons.com

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