In her much anticipated speech at the Federal Reserve Bank of Kansas City Symposium at Jackson Hole, Wyoming, Janet Yellen was wishy-washy, making stocks, bonds, gold and currencies vulnerable. The title of here speech was “The Federal Reserve’s Monetary Policy Toolkit: Past, Present and Future.” Absent from her toolkit is negative interest rates. Yellen clearly snubbed the doomsday crowd. Negative interest rates coming to the United States have been the foundation of the doomsday-crowd predictions.
Let’s first discuss the rallying cry of the doomsday crowd, and then we will take a look at an eye-opening chart.
Please click here for the chart.
Mattress stuffing and starving pensioners
As evidenced by the rise in gold and silver prices, the large number of emails that I receive and musings on the social media, the doomsday crowd has been convinced that negative interest rates are coming to the United States. The natural consequence would be people stuffing cash in their mattresses. After all, who would want to deposit money in the bank and get less money back?
Their scenario continues. Pensions funds would not be able to earn any money and would end up reducing pensions, leading to starving pensioners and riots in the streets.
Rocketing gold and stocks
The doomsday crowd has contended that the only protection against the upcoming negative interest rates from the Fed is precious metals. Silver would go to $200 and gold to $10,000…Read more at MarketWatch
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