TBT- Look Out for Exploding Rates

2024年10月7日

The Federal Reserve's aggressive 50 basis point rate cut despite headline inflation numbers coming in mixed resulted in an immediate reaction from the longer term bond yields. With no hope of moderating national debt numbers, no matter which party prevails next month, the consensus seems to be much higher long term rates. Accelerating oil prices and nervousness over the Middle East concerns may seal the deal. With the US Strategic Oil Reserves drained over recent years, a supply shock could boost oil prices dramatically.

Higher rates may also push gold and silver prices down temporarily, such moves would be an opportunity to further accumulate as dollar destruction is inevitable. While the administration hypes lower inflation numbers, moves in base metal stocks in addition to rising longer term interest rates certainly tell a much different story.

2024年12月18日

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Seems that the Fed threw in the towel today and admitted that inflation has won, although not in so many words. But future rate cuts look unlikely and they admitted that they don't really have a clue. The only way to get inflation down is to raise rates much higher and get rid of all of the toxic debt. They will never do that.