GOLD (COMEX) FED, rock and a hard place.

Originally posted by siameseparrot ↑

"Money manager Michael Pento thinks the global economy is terrible. So, will the Fed still raise rates soon? Pento contends, “The global currency situation will actually go into hyper-drive if the Fed follows through and goes on this protracted rate hiking campaign. Wall Street is a myriad and plethora of myths.

. . . One myth that is out there today is the Federal Reserve may go and do a ‘one and done’ rate hike. Where has that ever been done before? Previous rate hikes have been about 300 basis points (or 3%). The last one was 425 basis points. . . .

The Fed wants to be at 1.6% by the end of 2016. The only reason why they won’t get there, and I don’t think they ever will get there, is if the global economy continues to collapse. By the way, that is exactly what is happening. The global economy is imploding.

Our clueless and feckless Federal Reserve is fighting inflation. . . . There is one area of inflation and that is asset prices. That’s where all the inflation has gone. The real battle is the global collapse of commodities. Commodity prices are at panic lows and even lower. We are having a global implosion of growth because China is no longer a sustainable communist regime.”

http://www.silverdoctors.com/global-economy-is-imploding-michael-pento/

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Usd will remain a king dollar for as long as other countries realize a NEGATIVE effect of a LOWER currency in the TOT value.

Example was China. They tried 3times but the devaluation did a reverse course with a huge capital outflows. That didn't help to spur growth therefore they won't help exports either.

Australia is in deep sheet as I mentioned before. Australia is relying on commodities exports and RBA wants a lower AUD as well.

You can’t get both.

So if countries keep depreciate their currencies that will hurt their exports.

Deflation will not be solved. King USD is still the king forever and until the war crisis is over then US will think about how to depreciate their KING USD to focus on exports in order to lift inflation.