Everytime the Federal Reserve postpones interest rate increases – to bring these back to ‘normality’ a number of things happen.
USD goes down.
Gold goes up.
Dow goes up.
Borrowed this chart from ZealLLC.com – I looked at constructing my own but said ‘no way’ far too many moves – far too much shit over the time.
So very glad someone took the time to look at the extreme volatility which comes from the Fed’s comments.
Now the Federal Reserve was technically to look after the US Domestic situation – jobs – inflation and all that.
Not any more – the Federal Reserve is now the Global Central Bank – akin to a fat sow allowing the piglets – the debt bloated countries – to continue feeding at the low value USD trough.
You see – if interest rates increased then the USD gains in strength and those indebted countries have to pay back more interest – and a larger principal debt due to their declining currency value.
Dont tell Yellen though – these ‘doveish’ policies will force once prudent investors into stocks and other assets – riskier assets seeking a greater return to cover increased costs.
Watch your pensions teachers – then police and firemen….going to get worse very quickly.
Another bubble Janet?