The Fed. Res. today left interest rates unchanged at 1% as it sees no signs of inflation yet being a problem despite the US economy now growing strongly.
This is largely due largely to productivity growing at an unexpectedly fast rate.
The problem the Fed. have is that the Federal budget deficit is expected to be nearly US$5 billion and this significant debt will result in continued downward pressure on the US dollar.
Even when the Fed. does increase interest rates, the deficit will ensure that the USD remains under pressure.
The upshoot of this is that Gold will continue to rise, as a possible currency crisis ensues......Gold to US$450+ soon
