With even the official jobs numbers failing to meet estimates and expectations, the Federal Reserve headed by Jerome Powell has promised to benevolently lower rates of interest to be sure the economy which runs largely on debt and borrowed money, can continue unabated.
Before anyone thinks this can be some form of reprieve from the Recession, people should take a look at the fact that the buying price of gold has risen approximately the same % as the Dow Jones since the Fed Reserve made its dovish statements.
In fact, there’s many reasons to think that most of the world central banks coming together concurrently and reduce rates of interest is not an indication of positive things to come, nevertheless the official end in the road for stock markets artificially propped up and inflated by easy money, money printing, and market interventions.
Is the USA the newest Japan?
Japan’s experiments with low rates of interest has succeeded in delivering GDP growth at around – 1% each year considering that the early 90’s. Indeed, the ceaseless lowering of great interest rates because the early 60’s ultimately failed when Japan disappointed the planet that had previously expected it to get the prime contender with all the USA.
With so many of current modern countries having interest levels already underneath the official rate of global inflation already, it’s becoming readily apparent that this is just one more stall tactic until the entire global economic and monetary system resets.
Keeping this in your mind, savers, retirees, 401k and IRA holders will all wish to position themselves accordingly whilst the times continue to be “good”, because one there’s blood in the water, the sharks will swarm and many accounts won’t survive the feeding frenzy.
This is why you prepare today for which is guaranteed to come. There has never been a world reserve currency which includes lasted forever, and because of so many real economic indicators showing a tough economy- record amounts of personal, corporate, and government debt; low trading volume, low money velocity through the real economy, lack of auto purchases, record auto loan defaults, lower manufacturing orders, lower job creation numbers, reduced savings for that middle class- it’s only a matter of time before the bottom falls out of beneath the financial system.
Perhaps not today. Perhaps not tomorrow. However, you can’t print money forever while layoffs are increasing exponentially, Gold IRA Rollover within the real economy is decreasing, and today even President Trump is asking wphxrd more QE (quantitative easing), when he once referred to as stock markets fake throughout his candidacy for office.
And it’s no surprise then that the cost of gold has broken out of its recent lows to make surges during this all financial manipulation and tom-foolery, and the sky’s the limit for individuals willing to grab precious metals for his or her 401ks or IRAs.