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Monday , 1 March 2021

Tag Archives: higher interest rates

The Paradox of QE: If It Is Successful the Federal Reserve Will Fail & Plunge U.S. Into New Fiscal and Political Crises

[There is a major downside to] quantitative easing; it isn't free. There is a cost to the Fed's policy and the bill will be past due when the economy recovers and interest rates rise. Congress will then realize that the Federal Reserve System is the biggest financial black hole in the history of mankind [and that] the tab may be big enough to blow the Federal budget and plunge Washington into a new fiscal and political crisis. Words: 870

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Today's Investment Approach Must Change to Survive Tomorrow's Major Economic Changes – Here's How

The world is hurdling toward what seems to be certain economic collapse so, if your expectations are similar to mine, then you should be exploring ways to prepare for something that eventually will become an economic dark age. Investment performance is always relevant and it has never been more important than in these difficult economic times - nor has it ever been more difficult. Markets have already changed and are getting worse...As the economy worsens, market movements [like the two 50% declines we have seen since 2000] are likely to become more pronounced [and, as such,] it behooves anyone with exposure to the stock market to understand what is happening and [take action to] protect themselves against further 50%, and possibly larger, downsides. [This article outlines how best to do just that.] Words: 1491; Charts: 2; Tables: 1

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A Rise in Interest Rates Would Derail An Economic Recovery – Yes or No?

[While]... I am not currently predicting an acceleration in inflation [I believe]...that the risk of interest rate instability is very real [given that] core inflation is already above a key benchmark that the Fed has staked its credibility on,. It should be of concern to investors that, despite economic growth being so anemic and overall resource utilization being so low (including human resources), there is currently very little margin for error on the inflation front. [In this article the author evaluates the danger that rising interest rates could potentially have on the U.S. economy.] Words: 2050

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Egon von Greyerz: Gold & Silver Off to the Races – to $4,500+ & $100+ Each – Here’s Why (+3K Views)

The closing of the gold window back in August 1971 has led governments worldwide to create endless amounts of worthless paper money and the resulting credit bubble has created a world debt exposure of over US$ 1 quadrillion (including derivatives). It has also created perceived wealth for big parts of the world's population - a wealth which is only backed by promises to pay and by grossly inflated assets. Few people realise that this wealth is totally illusory and will implode considerably faster than the time it took to create it. [Let me explain.] Words: 890

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von Greyerz: More QE & Higher Gold Prices Virtually Guaranteed! Here's Why

"The U.S., with $15 trillion in debt, and roughly $1.5 trillion in tax revenues, is an enormous disaster waiting to happen. At 10% interest rates the U.S. would use 100% of its tax revenues to finance the debt....This is why money printing is guaranteed...and this time, like it has before, it will lead to a financial crash [which] will be of a worldwide magnitude.”

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Take Note: What's Happening in Europe Could Cause MAJOR Crisis in U.S.!

Many people have been writing in to ask me, "why are you focusing on Europe so much? Who cares about Spain?" The short answer is that everyone should care about Spain. Spain could potentially take down the banking system in Europe, which would mean the US facing a Financial Crisis at least on par with 2008. That is why Europe is a HUGE deal for everyone....We're talking about systemic risk on a scale that would make 2008 look tiny in comparison. [Let me explain further.] Words: 674

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von Greyerz: Events This Fall to Lead to 15 – 20% Interest Rates, Stock Market Collapse, Bonds Imploding & Gold Exploding! Here’s Why

I believe that in the autumn of 2012 we are going to see...a series of negative events - failing economies, higher unemployment, more QE, and extraordinary levels of social unrest. When QE is announced, I see a temporary rally in stocks but at some point stocks will collapse. I’m not talking about mining stocks, but common stocks outside of the mining sector.

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von Greyerz: Events This Fall to Lead to 15 – 20% Interest Rates, Stock Market Collapse, Bonds Imploding & Gold Exploding! Here's Why

I believe that in the autumn of 2012 we are going to see...a series of negative events - failing economies, higher unemployment, more QE, and extraordinary levels of social unrest. When QE is announced, I see a temporary rally in stocks but at some point stocks will collapse. I’m not talking about mining stocks, but common stocks outside of the mining sector.

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