RE:Real interest rates vs gold price Right on Cleareye.
I will add that the Fed is not actually going to do even half of the things they say they would do. Instead the Fed is just trying to manage the markets' EXPECTATION on what they will do. IF you have studied economics or followed the Fed you will know that they often talk about expectation of the market. It is the expectation that price will rise that causes runaway inflation. So the Fed is trying hard to be as hawkish as can be to kill the expectation that price will go higher - but is it working? Well, no, unless you are gullible and have been living under a rock.
When they raise rate, and market reacts, then I will believe. The Fed has no credibility left, no more stories to sell. Act. Go and raise rate. Stop talking about the plan of raising rate. Some may say I am a bit critical of the Fed but I am certainly no alone. Mind you this plan to raise rate 3x will be against the backdrop of a flattening yield curve and other major economies keeping low rate or even dropping rate, such as China. UK EU pricing in a 15 bps hike by end of 2022. Wow-wee.
This is just a really bad bluff but go ahead. Let's inverse the yield curve.
Lastly, but most importantly, it is clear that the Fed cannot raise rates to the point of stamping out inflation. US debt is approaching $30T. Yes, trillion. How do you service the debt? Print, borrow, spend, inflation, rate hike, print again, repeat. Think about this for a moment - where is the wealth being made in this never ending cycle?
You've got too much of a money supply chasing the same if not less goods and services (i.e. labour shortage, supply chain issues, paper wealth prompting otherwise productive individuals to stop working/retire). We will see prolonged inflation and there will be more printing very soon, to fund a universal income or income for the poor....then....well, anything goes at that point...