It Is All Bullshit!
The FED narrative and monetary policy actions are total Bullshit. Last week’s phony job number(having ADP suspend their more accurate report) yesterday’s CPI and expectedly, today’s PPI numbers, while still high are being overstated and hyped by the media propaganda machine. Why you ask, for the same reason the FED totally missed and held off hiking last year and earlier this year. They wanted to keep their powder dry for the current crisis. All policy moves by the FED and the administration are to use ridiculous oversized rate hikes to support the dollar and suppress gold prices. The Ukraine war is all about that. The talk of a likely 100 basis point rate hike is all about that. Hyping the inflation numbers now that the economy has already rolled over is all about that. They are all out to hold down gold and so far have gotten away with it. How bad does the economy have to get before they at least stop hiking rates. Just like fighting the last war (unemployment ) for an extra year when unemployment was already heading and staying below 4%, the FED is now fighting the last war (inflation) when while the numbers which are backward looking are still high, the economy is heading sharply lower, the pandemic monetary stimulus is well over a year in the past with the monetary base dropping and oil prices and most commodities have rolled over and are falling sharply. If the FED just stopped raising rates (not cut) they might actually luck into a soft landing, but they are going to screw up, as always, and cause a hard economic smackdown. All to keep gold suppressed because if it is allowed to have true price discovery, the dollar would collapse. Not in terms of the meaningless DXY which just compares it to the Euro, British pound, Japanese yen and the Swiss franc but in terms of real money, gold.
Yes, its all one giant shit show. And most lap it up.
It should be obvious that they caN come up with any number they well please so yesterday’s CPI 9.1% was clearly a form of psychological operation. (Sure I imagine the real number is probably double that) Clearly FED is trying to crush the market.
I don’t know what’s going on . But They have much bigger problems than Gold
Gold is Not the center of the universe
Agree it is all Bullshit though
Respectfully disagree. Gold is what it is ALL about. It is money and what everything is measured against. Remember the saying: “All war is political, all politics is economic, therefore all war is economic” Take it one step further and all war, politics and economics is about money.ie gold.
Oil actually.
The DXY is not meaningless. It’s direction does ultimately influence commodity prices, even if with diminishing effect.
There is no telling how low the BoJ is willing to let the yen go.