| | | | Thursday, October 17th
Gold is surging folks. The metal is up 40% on the year. People can sense that the central banks are failing their policies of monetary quarterbacking. Just today, the European Central Bank announced another round of rate cuts in an attempt to spur the failing economy. This is a rate cut in the face of both a recessionary economy AND rising inflation.
Face-palm. And of course, this is after the Federal Reserve cut rates last month; again, in the face of an inflationary environment. The central banks simply don’t know what to do. It’s either crater the economy or create runaway inflation. So, they’re picking the middle path, which may be the worst of both worlds.
We can see the real world consequences of bad monetary leadership not only in the soaring gold prices, but in the soaring 10-yr. Many thought that once the Fed cut, yields would drop. Well, surprise! The 10-yr has kept rising. And this has made mortgage rates rise again.
Bond traders are disillusioned with the fiscal situation. And they’re not going to let up until the Federal Reserve begins making better choices. In reality, the Fed should have raised interest rates much higher than they did. In a recent interview, famed macro investor Stan Druckenmiller said that he believed monetary policy was in fact still very loose.
But many others have been saying that since the Fed started raising rates. They weren’t willing to make the tough decision, and as a result, Americans will suffer. The question is:
What’s the best strategy to trade the Fed’s incompetence? Well, you know who usually get richer during bull markets, bear markets, stagflationary markets, and every other type of market?
The 0.01%. The politicians, corporate elites, and their cronies. To see how we can track their trades, and even trade alongside them, sign up for the free training right here. | | | | |
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