from The Daily Bell:
Speculative traders abandon gold in latest week … Gold prices fell Monday, moving in the opposite direction of the U.S. dollar, which soared after comments by Federal Reserve Chairwoman Janet Yellen last week indicated an interest-rate hike could come this summer. –MarketWatch
Today, gold prices have been clinging to around $1,200 against the dollar. It is becoming increasingly obvious that the Federal Reserve has two goals.
One is to keep the dollar strong against gold and the other is ensure that the world’s quasi-depression continues.
Yellen doesn’t say so, but this will be the result of her actions.
“It’s appropriate — and I have said this in the past—for the Fed to gradually and cautiously increase our overnight interest rate over time,” Yellen said in a recent speech at Harvard University where she received an award. “Probably in the coming months such a move would be appropriate.”
But it’s probably not appropriate. Nothing in the US economy is signaling “recovery.” US statistics are endlessly optimistic anyway.
We’ve reported previously on this: Yellen is raising rates because she wishes to raise rates not because of any particular financial evolution that is forcing her hand.
In a recent CNBC article, “The Fed could be blindsided by ‘stagflation’,” contributor Michael Pento went even further.
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