OTCPK:KRCLF - Post by User
Comment by
NineLiveson Aug 10, 2023 9:07am
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Post# 35581348
RE:Powell may simply be playing a different game.
RE:Powell may simply be playing a different game.It's a good and logical discussion to have. Personally my belief is these tit for tat interest rate increases are primarily a currency war. The stronger the currency the cheaper the imports, the cheaper the imports the lower inflation goes. But it hasn't played out that way due to the DXY dropping from 114 to 101. Yes inflation pressures have eased, as you mentioned fuel prices helped but that's slowly changing as the Saudis put the squeeze on. Consumers will eventually rein in their spending causing a recession and that's probably the only thing that will taper off inflation. But yes it's embedded, through shortage of goods and perpetual wage increases. Rock and hard place, keep a healthy slush fund in place.
I agree Gold will have its day. It usually rises ahead of a downturn and mining stocks usually rally in a 3 month window before being pulled down with everything else.
It's now all on the back of the consumer, do they stop spending and concentrate on debt payments or instead YOLO themselves into the ground ?
The cracks are showing as banks get put on downgrade watch, Not a healthy economic situation, who will blink first ?