The FED isn't likely to hike rates and now experts say that they need to aim for higher inflation rates in order to solve the problems facing the economy.
They say that 2 percent is "not suitable" to their needs. . . . .
Specifically, the President of the Federal Reserve Bank of San Fransisco, John Williams, says that having a higher inflation rate would allow for more "monetary room" in order to fix the economy.
So what he means is that only more debt for the people is the solution to the problem? Would it hurt him to consider a little currency competition? . .
see: http://www.ft.com/cms/s/0/4c078a00-6327-11e6-a08a-c7ac04ef00aa.html#axzz4HVC22O5g
http://www.cnbc.com/2016/08/14/dollar-on-defensive-after-downbeat-us-data-unfazed-by-weak-japan-gdp.html
In light of the unlikelihood of a rate-hike, gold has received a nice recent boost.
and we can all watch in amazement as Japan dabbles with negative interest rates in the meantime, in order to try and fix their economic problems. Will the West soon see negative rates as well?
Negative interest rates are far more serious than just dabbling. The markets can't cope. the United Kingdom have lowered their interest rates, along with Australia. Switzerland are already into negative territory with the EU to follow suit with lowering interest rates and more quantitative easing. The US Federal Reserve planned to raise rates 4 times in 2016 and they can't even muster a paltry 0.25%. The effects of Brexit on the global economy was just the start, the system isn't working and we are due a huge correction. The market WILL collapse and a new depression the likes of which has never been seen is on the cusp of snatching the lives of ordinary people who are oblivious to the events unfolding around them.
you are right it is very serious and I sure hope that such a self-destructive policy doesn't make its way over here .. going to get a lot worse before it gets any better
Get ready for QE4.
Peter Schiff will be right once again.