Goldseek Nugget - David Haggith: Fed Tightening and Stagflation

David Haggith, head of The Daily Doom, takes a hard look at the macroeconomic trends with big implications for the financial markets, including gold. We review the charts of key indexes searching for predictive structure in the data.

- David outlines the key trends in inflation and unemployment.
- We review the key lending rate themes, including the US 10 Treasury Yield - en route to 6%?
- What are the implications of soaring Treasury yields for bond and stock investors?
- Will the long-term debt rout continue and who is selling?
- Could higher yields put further downward pressure on US equities?
- David does not expect a domestic-economic, soft landing.

I think for example, the Fed's tightening isn't on the face of it, good for gold, but on the long term, not even long term. I mean, just there are other factors that are good for gold than this as a commodity, is that while the Fed having to go back to tightening, that may be bad. The economy is wrecking and self-destructing, and the failure is beyond good for gold.

So you're going to have okay, with a fat ass to tighten. But guess what? It can't because the economy has gone into stagflation now, now you've got every...(not everybody), we got a lot of people saying, this is stagflation. So we're at the point where it's no question in my mind, we're in it and a lot of people are finding you saying, 'It looks like we're in it.' and that's going to be good for gold.

Because the economy breaking apart and stagflation is saying the Fed has failed and what's it going to do? It's a failed central bank -- it's going to be strong for gold because who wants the central bank's money when it's failing? I think this summer is going to start to prove that out. I think that as inflation continues to rise, particularly with oil driving...what's it going to do? How's it going to fight that inflation? When the economy is going down at the same time? It's really going to be pulled in two directions here. So I think we're at a real compression point. Something's going to have to give.