Who would have EVER thought that inflation is a negative for gold. (and a weakening Dollar to boot).
An historic moment in time.
Never in thousands of years has this been the case.
Too many hands (Central Bank manipulation) in the pot, I bet. And if that’s the case, there will be a reversion to mean. The Banks will be left with no gold, and China, Russia, and a few others will have cornered the market at ridiculously low prices.
CIGA Wolfgang Rech
It’s not a negative for gold, it is just what they tell you and want you to believe. Pretty much the same as all the other idiotic ideas people are being fooled with in our world filled with skittles, unicorns and rainbows!
Gold Price Doesn’t Budge After New York Fed Highlights Higher Inflation In 2022
June 14, 2021
(Kitco News) – The gold market is off its lows but still struggling in negative territory, finding little traction as data from the Federal Reserve of New York further highlighted the growing inflation threat.
Monday, the regional central bank released the results of its May consumer expectation survey. Traditionally, the report doesn’t garner much media attention, but markets are sensitive to the looming inflation threat.
The report said that median inflation in May 2022 will increase by 0.6 percentage points to 4.0%. The report noted that this is the seventh consecutive monthly increase and a new series high.
Looking further out, the report said that median inflation expectations for 2024 increased from 3.1% to 3.6%. The report added that this is the second-highest level in this series, behind only behind data from August 2013.
According to some economists and analysts, the Federal Reserve has been effective in managing inflation expectations. Federal Reserve Chair Jerome Powell has said on many occasions that the central bank expects rising inflation to be transitory as the economy continues to recover from the COVID-19 pandemic.
Nicely put by Charles Hughes Smith.
He captures the essence of today’s mindset.
There always was, and always will be, blowout tops in markets and human psychology.
Unfortunately, people keep turning a blind eye to history.
Yes, the Fed is manipulating everything. But even they have their limits. Should they be bold and reckless enough to transgress that line, then the volume of bailouts/support/stimulus required will herald a new era….the total destruction of the Dollar.
Perhaps this is what they want…a Reset.
And Russia and China see this as clear as day.
CIGA Wolfgang Rech
Wolfgang checks back in again.
Seven Things Nobody Talks About that Will Eventually Matter–A Lot
June 13, 2021
Nobody seems to notice the ‘diminishing returns’ on Fed manipulation, oops, I mean ‘intervention’.
Perhaps it shouldn’t surprise us that everything that will eventually matter is ignored until it does matter–but by then it’s too late. Here’s a short list to start the discussion:
1. The Federal Reserve has transformed the American populace into a nation of dismayingly over-confident gamblers. I’ve been writing about moral hazard–the separation of risk from consequence–since 2011. Punters who are insulated from risk will have an insatiable appetite for risky bets, which is precisely what we see on a mass scale, as the confidence that the Fed will never let markets drop is 99.99% because the Fed has indeed reversed every decline, no matter how modest, month after month, year after year.
The Fed has perfected moral hazard: everyone from the money manager betting billions to the punters gambling their stimmy money is absolutely confident I can’t lose because the Fed will always push the market higher. Hence the advice to never sell and keep increasing the size of one’s bets because losing is transitory (heh).
Debt, debt, and more debt!