RE:RE:RE:Oil prices are up, US $ is up, hummmAhh so they are manipulating the dollar higher to try to control inflation and gold is just an unintended consequence? Could the same not be said for all markets then including oil? High US dollars make low oil prices as a resulting consequence whether intentional or not?
As for the "new normal" was that not the inteded purpose of The Fed when it was created?
"
The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises" Is it just because this is an election year or is it because the USA tends to be at war (proxy or otherwise), more than it is at peace and election years invariably tend to fall within with these turbulent events?
Again, don't all administrations try to regulate the economy towards favourable conditions in order to gain favour in elections or approval polls. Aren't they always campaigning?
Also does CJ benefit from this "manipulation"? Not with lower oil prices but with lower inflation?
Sure that $120 oil price spike in 2022 greased the wheels for debt reduction and an increased divy and then inflation started creating shortages and exorbitant costs for goods and services. How long before it was detrimental instead of beneficial? Surely some kind of happy medium is the best way to allow the economy to function and react accordingly. Maybe the Kiwis hit the nail on the head with a 2% inflation rate goal? The rest of the world sure seemed to think so.
GLTA
VeritasVern wrote: The US dollar has a big impact on inflation as that is the currency that buy/sells most commodities, not gold. Having a direct influence on the dollar can lessen the impact of inflation. Gold on the other hand has little to no effect on currency and inflation because they delinked the dollar to gold in the 70's. Gold is going up because of demand, from consummers, Governements such as China and others because technically it is still considered a currency but mostly a hedge against inflation. Therefore the FED would want to have a strong dollar to lessen the effects of inflation while controling the price of gold has little effect. If it was they would also be trying to keep the value of Bitcoin down as it is also type of currency and a hedge against inflation.