Interest rates are the price of money and are shaped by a variety of constantly changing factors. When the Fed manipulates interest rates, it distorts the signals sent to investors. The result is the boom-bust business cycle.
Moriarty discusses gold's bull market, noting corrections are natural and driven by tax-loss season, not politics. Sentiment hasn’t hit a top, making $2,700 gold a strong price target.
India has brought more of its gold home. Last spring, the Reserve Bank of India repatriated 100 tons of gold, moving it from the UK to vaults within India's borders.
Countries outside the eurozone but in the EU, like Poland, Hungary, and the Czech Republic, are positioning for a new gold standard, potentially joining the eurozone in the future.
Many Americans are either not sure or not interested in what role the Fed plays in managing the economy. ‘The economic crisis has changed everything,’ writes Congressman Paul.
Trump will likely try to pressure the Fed to bring rates down more aggressively. While lower rates might stimulate the economy, they also risk putting upward pressure back on inflation.
