Swiss America Trading Corporation

Fed Must Chase Inflation: Buy Gold!

Gold last traded at $1,358 an ounce. Silver at $16.87 an ounce.

NEWS SUMMARY: Precious metal prices jumped higher Wednesday on dollar weakness and rising inflation fears. U.S. stocks zig-zagged lower then higher as investors shrugged off the effects of a now anticipated March Fed interest rate hike.

"What happened today? Weren't we supposed to selloff on a strong CPI number? Dips may be harder to come by in this new regime of fed indecisiveness. Up $5 may soon become the dip to buy. For now, look for $1350 to be an option related magnet. If it breaks free from that, $1400 shouldn't be a problem. CPI is strong today at 0.5 on expectations of 0.2 This makes the Fed more likely to raise rates....When (if) the rate hike actually comes.. Gold will be more likely to rally as the fed must lag inflation keeping real rates close to zero or negative to prop stocks....And the unintended consequences of Gold rallying as the Fed attempts to orchestrate an orderly low volatility type of descent in stocks will become obvious....Welcome to the 1970s. 'Buy the Dip' is no longer exclusive to stocks. It may soon become Gold's mantra."

inflation The Age of Inflation Is About to Begin -Bonner/Bonner And Partners
"The New York Times has noticed the world-as-we-have-known-it is coming to an end. 'World braces as an era of easy money draws to an end,' is the front-page headline this morning. The world-as-we-have-known-it was created by the trio - Greenspan, Bernanke, and Yellen. Over the last 30 years, they aided and abetted the adding of trillions in new chips- fake money, borrowed at fake rates - to the nation's gambling stock....But the defining feature of the Easy Money Era was fraud. The money was counterfeit. Interest rates were phony. As a result, asset prices were falsified....There is no chance- none - that the Fed will follow through on its 'normalization' of interest rates. Instead, when the stock market crashes... and the economy goes into recession... the Fed will quickly turn back to the tried-and-true panacea: the old miracle elixir, that snake oil known as EZ money. But... there's a catch. In the coming crisis, monetary policy alone will not be enough; the Fed doesn't have enough room to cut interest rates...the critical fraud is shifting from monetary policy to fiscal policy (government deficit spending). Yes, the Age of Inflation is coming. Fiscal stimulus. Big spending by both parties."

The Stock Market's Bumpy Ride Is Just Beginning -Fortune
"The 'new normal' is beginning to look a lot like the old normal....It took just a minor uptick in wage growth data to trigger these financial shockwaves: average hourly earnings rose to 2.9% year-over-year in January from December's 2.7%. Financial markets are beginning to lose faith in the reassuring narrative of the last several years. In the aftermath of the global financial crisis, the Fed and other major central banks injected enormous amounts of liquidity into financial markets....Parts of the corporate sector will come under stress if funding costs rise faster than expected, bringing additional volatility. Expect greater volatility in FX markets as well....Reversing 10 years of massive quantitative easing and zero/negative interest rates is an unprecedented experiment. It would be folly to assume they can pull it off smoothly, without shocks or accidents....The new normal will look a lot like the old normal. But getting there will be a bumpy ride."

Courting Female Votes -Pontification Blog
"With President Donald Trump's approval rising in recent polls, and with Democrat prospects for the November elections sinking, it is obvious why the Leftist media is suddenly trying to polarize America's largest bloc of voters - women. Last Sunday, ABC's 'This Week' mobilized a hate fest condemning the President and Chief of Staff General John Kelly for not acting instantly to fire White House Staff Secretary Rob Porter, accused of domestic violence by two former wives. Despite the current scandal, one of Porter's ex-wives days ago told the U.K. Daily Mail: 'I don't want to be married to him....But I definitely want him in the White House and the position he is in. I think his integrity and ability to do his job is impeccable.'....'This Week' anchor George Stephanopoulos, former hatchet man for Democratic President Bill Clinton, defended his man accused of violent rape. But that was a different time, before the rise of today's hyper-partisan media and #MeToo post-feminist radicalism, heard on ABC's Sunday show. Some radicals have gone beyond seeking equality for men and women and instead now, like 'gender racists,' want to 'overthrow the patriarchy,' to create a new society dominated by women....A majority of white women voted for Donald Trump in 2016, but single women dependent on government as their provider are inclined to vote for Democrats." Full story

RealMoneyBlog - Free daily/weekly email

2018RMP THE FUTURE OF MONEY, Swiss America's 36th Anniversary issue of REAL MONEY PERSPECTIVES discusses the biggest wildcards to prepare for in 2018, cryptocurrency mania and why gold and silver are the safest forms of wealth insurance.

Other features include: * a 2018 economic outook * Bitcoin's future * When you should file for Social Security benefits * Eight axioms to understand the fake economy and more... Request a FREE copy HERE

Latest Feature Commentary

By Craig R. Smith -While the details are still very much in flux one thing is certain, President Trump's resolve in asserting America as a force against human atrocities; a resolve absent during the Obama years. As for me, I am proud that America is attacking evil wherever it rears its ugly head. More...

Real Money Perspectives Weekly Email Newsletter is a free service of Swiss America Trading Corporation.

Swiss America Trading Corp     -     15018 N Tatum Blvd     -      Phoenix, Az 85032