pog looking dodgy, page-34

Exactly All4One.

There are balancing forces in play and the US needs the lower interest rates on mortgages to support the housing market which is a big chunk of their GDP. I've read some opinions that any attempt to taper will cause such chaos in all the various markets that they will have to hurriedly back off. Some even say that QE will be expanded rather than tapered.

In the short term, if the US fed decides not to taper in it's September meeting and leaves it wide open whether it might or might not taper in subsequent meetings, gold will take off again, and the 10 year rates will fall.

The key to what the fed does it how the interest rates react to the news. Right now the 10 year Tbonds are bouncing off the 3.0% resistance. Some say the critical level which must NOT be exceeded, at least in the near term, is around 3.5%. It's going to be fun to see how it plays out!