After Seven Years The Fed...... Makes the bold decision to do NOTHING!
but this time, the stock markets head down and gold heads up. Could it be that people no longer think that the FED can keep this party going forever? That perhaps the central bankers are no longer in control of everything?
i find it odd that after pumping the system with trillions in new fiat dollars, they can't even achieve their stated target of 2 percent inflation. Is that the ghost of deflation lurking in the shadows? Collapsing oil and base metals prices. Rumblings of decline in China. Free money and zero interest rates were supposed to make contraction impossible, weren't they?
now the bankruptcies begin. It has started already in the oil patch. All those guys who borrowed billions to go fracking are starting to sweat and the first ones are failing. It can snowball if those oil prices stay down in the 40s.
August was ugly. The next few months could be even worse. I look for gold to break out above $1140 and run up from there.