Saturday, July 10, 2010
Dettol For Skin Infection ever rising gold
F r ida y morning, we learned that the unemployment rate has now reached 10.2%, the highest since 1983. The news confirmed that the Federal Reserve is right to keep interest rates low for an “extended period of time.” The Fed wants to get the economy growing again, and that requires business expansion that will create jobs.\n\nFo r investors like y ou and I, it also tells us that the major profits going forwards will be in gold and commodities.\n\nAt the r isk of repeating m y self, by maintaining its stimulative stance, the Federal Reserve has abandoned any inclination to control inflation. Instead, the bank and the government will try to push as much money into the economy as possible in Hopes That Consumers Will Keep Spending and Business will borrow to finance expansion. The mo r e mone and gets created, Especially in the context of a weak economy, The Weaker the U.S. dollar will get, and the more expensive commodities will become. I Know What ou and May Be thinking. His r ely, if the economy is so weak, commodity Consumption can not grow. Well, That May be true in the U.S., But The Developing World Are Economies in fine shape and Expanding rapidly. In FACT, foreign dog Investors now borrow U.S. dollars at Low Interest Rates and Foreign invest in bonds, or Currencies with many high rates of return. (It's called the "carry trade.") That Could Encourage business expansion overseas remove nicely. Asstill close to recession Rather Than On Our wa well and to recovery. Last week, for instance, oil inventory drawdowns Suggest the economy is on the mend. The data paro, pero, offer a dimmer view of Where Things Are headed. The unexpected 0.4 percent increase in the Unemployment Rate, Percent to 10.2 was bad enough. But the payroll data show companies continue to shed jobs at an Alarming Rate. anothe r ill wind for the economy and That is the pace of bank lending Continues to contract, Despit the pleas from Treasury Secretary Geithner That it's a patriotic duty. Total bank credit has Contracted at an annualized rate of 9.1 Alarming Percent During The last 13 weeks. That kind of credit destruction seen hasn't Been Since The Great Depression. If we are to have any sort of meaningful recovery we’ll need the banks to step up and do their part by lending. \n\nGold continues to cue off the dolla r , moving higher when the greenback weakens. But the metal is also starting to move independentl y of our currency as well, with investors around the world seeing value in it and bidding the metal higher. Last week we discussed the central bank of India making a huge gold purchase, buying 200 million ounces from the International Monetary Fund (IMF). Now we understand the Russians have reversed course and rather than unload a portion of their central bank gold holdings they’re looking to buy more. \n\nThat kind of action is ve r y bullish for the metal over t
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