| With inflation stubbornly high and trending nowhere toward their 2% target, he and his compadres on the FOMC grasped desperately for some data points and rhetorical straws to justify their quarter-point rate cut.
|
| But any market analyst with half a brain knew that there was simply no reason to cut rates...except for the one thing that Powell couldn’t say: The Fed is trapped.
|
| It is, as we’ve covered, a classic debt trap. The costs of servicing the Federal debt are soaring at current rates, and the Fed must lower rates or run head-long into a fiscal crisis.
At the same time, a tsunami of debt-reset costs is about to hit corporate America, potentially sending the economy into a tailspin.
And while inflation argues strongly against rate cuts, yesterday’s bloodbath in risk assets tells us that investors won’t accept a hawkish outlook like the Fed’s rhetoric delivered.
There’s no way out for Powell & Co.
In the end, gold will benefit from the dangerous and uncertain days ahead as no other asset. It will remain the only way to hedge against the flood of monetary liquidity that must come during the turmoil.
It’s a lot to take in...but fortunately there’s a guidebook available right now.
|
| The Best Value In Investing
|
| On Tuesday, we delivered the single best value in investment publishing to our reads of Gold Newsletter.
It was our blockbuster year-end issue packed with 87-pages of invaluable investing intelligence. It presented not only my latest market outlooks, but also coverage of dozens of today’s top junior resource stocks (including three red-hot new recommendations) and comprehensive highlights from our recent New Orleans Investment Conference.
To give you just one idea of how valuable it is, consider what I wrote in my opening article on Tuesday, the day before the big sell off in the markets:
|
| “...that valuations of equities and other assets are getting stretched to the point where a very significant correction, if not a full-blown crash, seems both inevitable and imminent. When that happens, we need to understand that gold will get hit hard along with everything else...but gold is also positioned as no other asset to benefit from the inevitable flood of liquidity from central banks.”
|
| Between my market comments and the insights of dozens of today’s top experts featured in this issue, our year-end edition of Gold Newsletter is the single best guide for the uncertain days ahead.
The good news: You have a special opportunity to purchase this single issue, or an entire year of Gold Newsletter for a limited additional cost.
Just click on the link below to get it all right now.
|
| Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference
|
| CLICK HERE to watch interviews by Brien Lundin and Kai Hoffmann with many of today's most exciting junior mining companies on the
Gold Newsletter Youtube channel.
|
.png)
