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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: bull_dozer who wrote (192046)	9/21/2022 5:46:02 PM
From: bull_dozer	4 Recommendations Recommended By fred woodall maceng2 pak73 Roads End Read Replies (2) \| Respond to of 217822

Even a Weaponized Dollar Won’t Stop Gold’s Historical Turning Point Explaining the Inexplicable: Rising Rates into a Recession? On the surface, such central bank tightening in the face of a tanking economy and increasingly volatile risk asset markets makes little sense, as a strong USD and higher interest expense (i.e., interest rate policy) crushes just about every asset class in its wake, from an empirically broken bond market and grotesquely over-valued stock market to the artificially repressed precious metals space. So, why is the openly cornered Fed acting so openly at odds with the real world and the US economy after years of feeding it instant-liquidity at every “dip,” cough or market sniffle? The Fake War on Inflation The standard answer is to “fight” inflation (which the Fed’s own mouse-click money alone created). But as we’ve also written and observed so many times, a Fed Funds Rate at 3%, 4% or even 5% is not only mathematically crippling to a nation which simply can’t afford such rates, it is equally impotent against a headline CPI print in the 8-9% range (and rising). In short: Rate hikes won’t defeat money supply driven or supply-constraint driven inflation at all. Thus, and again, what is the Fed really doing and thinking notwithstanding the official nonsense that makes the headlines or pours from their double-speaking lips? A Weaponized Fed Running Out of Bullets One answer: The Fed, like the SWIFT removals and FX reserve freezes, is just another weaponized tool against Russia and the seismic shifts (petrodollar, LBMA alternatives, mono-to-multi-currency trade agreements) resulting globally ever since the openly failed sanctions against Russia were commenced earlier this year. To any who understand the origins, history and actual practices of the Federal Reserve, the notion that this cabal of private bankers is an “independent” entity is by now an open farce. That is, the Fed is anything but “independent” and is not only a political fixture of the DC horizon, but rather a political hijacker of the American economy, markets and policy in ways the go far, way far, beyond its supposed “mandate” to simply manage U.S. inflation and employment. It is my own strong belief that one of the primary motives behind the current rate policy to strengthen the USD has been to help the U.S. government break the financial back of Russia, which like all its prior policies/sanctions (based on the re-invigorated Russian currency, trade surpluses and multi-lateral trade agreements) is failing. Toward this end, it is far more than likely that the Fed’s “weaponized” rate hiking will continue this week, much, frankly to the chagrin of a temporarily falling gold price. What one has to ask however, is will this policy backfire as well (?), for it seems that this game of financial chicken with Putin is breaking the back of the US markets and economy (and its EU allies) with far greater effect. goldswitzerland.com