Fed’s announcement meaningless!
Posted on Wednesday, June 25th, 2008 | In Asia, Current Market NewsAs I expected, the Fed announced today that they would hold interest rates steady. Also, as I expected, they talked a bit tougher on inflation. But that’s all it is – talk!
While there are likely to be loads of market swings this afternoon and tomorrow, the bottom line is this: Nothing the Fed said will change the long-term decline in the value of the U.S. dollar … nor the uptrends in natural resources and inflation. Those trends are far more powerful than the Federal Reserve, or any combination of central banks, for that matter.
And actions speak louder than words. Bernanke has so far failed to back up his tougher talk on inflation and desire for a stronger dollar with any action whatsoever. And he’s not about to start now.
Reason: The weaker dollar and rising inflation are the lesser of two evils. Deflation is far worse an outcome than inflation, and there is not a central banker or politician who thinks the opposite.
Last 5 posts by Larry Edelson
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 About Larry Edelson (http://blogs.moneyandmarkets.com/blog/real-wealth)
With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research’s customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors. Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com Mr. Edelson holds a B.A. degree from Columbia University. |
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