Punishing gold prices when rates go up is comical because though inflation goes up to keep a spread above interest rates
increases they won't be nearly penalizing enough to do a 1980
FED chief Volcker retracement of inflation until they get well over
10% and the market knows that.
In Fact the FED tells the market that so that any correction of the
markets and gold prices are temporary and not permanent.
It's the paper gold exchanges of the COMEX in the US and LBMA
in Britain that are artificial penalizing gold's price excessively as if
the interest rates are killing off inflation and the economy, in more
than a temporary way, as if they are the FED and giving market
direction.
Interest rates are being normalized and not signaling the need to
slow down overheated economyies. There is no overheated US,
west, BRIC or world economies. Not even close!
Asset classes have been artificially raised by all the money printing
and debt creating going on the past 8 years, such as the west's budget
deficits, stock market, bond market, housing market, OTC derivatives
casino market and wars/terrorist war markets. But not the economies
of the world. Wall street and rich street have done great but not main
street and the peoples of the world. Or at least not the west's peoples
if the emerging nations' peoples have.
When Volcer reinged in inflation in early 1980 and gold with it, inflation
was well over 10%. If the west's economies were not obviously over
heated then they were more robust then what they are now. Volcker did
that reigning in of inflation by raising interest rates above the inflation
rate with the clear signal to the markets that interest rates would be
kept higher than inflation till the markets sold off in a way that wasn't
just a correction this time, but a definite direction dowwards.
Then OPEC whose boycott or oil embargo created the excessive
inflation of the 1970s was proceeded to be war instigated against
in the 1980s and directly warred against by invading west armies
in the 1990s and 2000s. Mutually causing the terrorist wars.
All having to do with creating israel as the new political movement
and new vatican empire over the planet, over 3 world wars, one more
to go. And creating einstein, central banks and oil as the false physics,
false money system and false energy policy over the world instead
of tesla's physics, congress's money oversight and tesla's wireless
energy policy for the world.
Nothing has been the same since the kennedys were assassinated
ted twice in 1964's airplane crash and character assassinated over
chappiquiddick incidence he had nothig to do with but framed.
Yes the kennedys and liberal democrats were corrupt too but not as
corrupt as the secular communism tending northeastern republican
party that created the FED, 1920s crash, Hurbert Hoover to FDR's
keynesianism, Hitler, WWII, communist china and cold war. Or not as
corrupt of the far right's we have jesus christ up our sleeves and
religious communism goal for the US and planet.
In fact when you think about it god is corrupt and evil, and making a
saint jesus christ makeover of itself doesn't make it any less evil
or jesus pied piper deceviver andf saving the planet and after life any
less evil. The problem is, are all the religions going to admit that
about their just as evil gods and religious figures representation of
their gods? Or not face up to that and learn how to live together, despite
the fear of exposing god's real nature and retaliation on its part?
Not much of a positive and encouraging choice either way.
This article doesn't say much aboout the above topics other than a 1980
Fed chief Volcker's need to kill off excessive inflation is not even close
to being needed yet, in today's US and world economies.
ie
'Gold Pressured By Increasing Odds of March FED Rate Hike'
by Jason Hamlin
https://goldstockbull.com/articles/gold-pressured-increasing-odds-march-fed-rate-hike/ "This new bull cycle in precious metals that started in January of 2016
cannot be stopped by Federal Resereve jawboning or minor rate hikes
from NIRP to ZIRP. Rates remain well below historic norms at we don’t
see this changing anytime soon. There will be no modern day Volcker,
because the conditions that neccesitated his aggresive rate hikes do
not exist today.
We believe the gold price is headed to $2,000 within the next few years
and that mining stocks will continue to offer compelling leverage. Junior
mining stocks in particular are going to geneate spectacular gains for
investors and our portfolio is well-positioned to take advantage of these
trends. We believe that for long-term gold investors, all dips over the
next several years will prove to be excellent buying opportunities."