Fed’s 2% inflation target

Interest Rate Cuts – Salvation Or Damnation?

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The anticipation and speculation regarding interest rate cuts is almost comical to watch. Scratch ‘almost’. Interested observers are obsessive about the topic in a hilariously funny way. Mainstream media and the pundits always find cause for promoting a possible rate cut no matter what is said. (see Investors Re: Rate Cuts)

The expectation for at least one cut of 1/4 point before the end of this year seems to be nearly universal, so let’s go with that for now. Here are some questions for consideration.

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Investors Re: Rate Cuts – “So You’re Telling Me There’s A Chance”

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INVESTORS AND RATE CUTS

When it comes to cuts in interest rates, investors stubbornly cling to the notion that “no” means “yes”. In the movie, Dumb And Dumber, Lloyd Christmas (Jim Carrey) asks the lovely lady he is pursuing what the odds are that the two of them might get together; and, makes a point of telling her to “give it to me straight”. She replies “not good”. She further clarifies that the actual odds are “more like one in a million”. Not to be deterred, Carrey, in character, replies “So you’re telling me there’s a chance”. Here is the clip https://www.youtube.com/shorts/cbrTKw50X6U

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Gold To Monetary Base Ratio Says No Hyperinflation

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A fundamental tenet regarding money and inflation is that ongoing money creation by governments and central banks (Federal Reserve) cheapens the value of all money (US dollars) in circulation and leads to a loss of purchasing power. The loss in purchasing power shows up in the form of higher prices for all goods and services.

As long as the amount of money that is created

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Gold – “Make Me Feel Good…Tell Me Anything”

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Most technical analysis of gold boils down to “what the charts tell us about gold’s next move”. The next move according to most seers of the trade – is “imminently bullish” and represents one, last chance for investors to save their financial souls.

The problem is that more people have lost more money by ‘investing’ in gold upon the advice of those who proffer it, than will likely ever be made up going forward.”…Kelsey Williams

There are several reasons for that. 

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