Fed’s Williams sees rate hike this year, if risks fade

Agreed, inflation is probably more like 5%, but, its only there because of money printing, without which the Dow would be 5,000 etc, etc. Well, if that's the case, why not aim at deflation, reduce the Dow, S & P, value of Treasuries, Real estate etc, if it all cost less then less debt would be needed to buy stuff etc, etc

Seems to me , the Fed et al are propping up (and failing) against the Sunami of debt, therefore the Dollar and all Fiat is fast becoming "Confederate Bonds", the Chinese dumped over $90 Billion of US Treasuries in August , was it really to protect the Yuan , or was it that they knew what would happen to the value of the dollar and Treasuries once they started buying oil in Yuan (news out today)

From where I'm sitting this is very like Japan 1989 all over and they are still in deflation 25 years later, therefore, buy physical Gold, sell Real estate, sell stocks and learn to cook

Technically (Oxford English Dictionary) Inflation is "A general increase in prices and fall in the purchasing value of money"

As there is a fall in the purchasing value of money the value of money decreases, but against what ? as Einstein famously said "Not everything can go down at the same time" so , and hence why they grabbed all the Gold in the US in 1933 (at $27 p/ounce, later bringing it to market at $33) (the quote and exact figures elude me , but you get the point and they are close).

So, Fiat currencies now are diminishing in value against Gold, the price we see as spot is the paper value... had anyone asked for physical delivery of the Gold last week on the Comex (rather than cash settlement) they would be one of 137 claims on the same ounce of Gold held for delivery (Scary !!) If , and this is highly probable, the system took a shock or Black Swan, anyone with paper Gold could technically ask for physical delivery.. should this happen Gold would become priceless overnight.

So, Gold is therefore increasing in value with every paper ounce sold by a factor of X and , as the currency wars continue also increasing against Fiat by a factor of X, if your home currency was say the Ruble , you would have lost 50% against the USD since January, had you stored it in Gold it would have retained its value, however , if it were in physical Gold the price would now be considerably higher than paper Gold or the Dollar as genuine 24 Carat Gold is changing hands at a considerable premium against Paper Gold globally (the rate is widely varied globally)

Further, when stocks et al were falling out of bed in China recently , the Gold price dropped, not because it lacked value , but because Gold was the only item on the block that you could sell easily to cover margin etc...

When the balloon goes up, you will be able to go to any market in the World an find a ready market for physical metals, you won't be ably to lay of , or price accurately, Stocks , Bonds or Real Estate.

Ergo, Buy physical Gold or Silver , as JP Morgan famously said "The only Real Money"

If I understand correctly, gold only goes up if there is inflation. Well, inflation is a measure of speed of money changing hands. When the speed is fast, inflation is high, economy is said to be booming.

If the speed is slow, economy is said to be declining or recession.

When there is inflation, money comes to you quickly and also leaves quickly. Therefore if you want to save some money, you save it in gold. Because of inflation, money is losing value compare to gold.

[quote=NewtonsCash;8478802

From where I'm sitting this is very like Japan 1989 all over and they are still in deflation 25 years later, therefore, buy physical Gold, sell Real estate, sell stocks and learn to cook [/quote]

you mention about Japan and Gold. Let's see. In 2008, Gold was 60-80 thousands JPY. Today, 134.5 thousand JPY.

So true.
They won't raise rates while inflation is so low, therefore we'll see QE4 (5, 6...) before rates raise. They'll rather lose face than markets, but eventually they'll lose both. All they do last few months is desperately trying to bring some confidence at least to the USD.

Mate, don't forget: primary function of (CBank induced) inflation is to ease debt burden. That's why all highly indebted nations need, and all CBanks force, inflation. And you can't get inflation by raising base interest rates, but by debasement/money printing.
And higher price of eggs and butter is not enough for inflation

Fed means ......Finaly....Egg....deliverer

lol.... pushing away from rate hike.
It was September, then was December and now with condition in this year. Hahaha

Well if you remember back in october 2014 when Jannet yellen was asked how soon is the first rate hike coming she said "considerable period of time" then she was asked how much is that period of time. Yellen said 6 months, which would put the first rate hike in March of 2015.

Around January they removed the term "considerable period of time" from their FOMC statement. Replace with the word "patient" then they kicked the rate hike expectation to June.

As June arrived we got more jaw boning from the Fed and the rate hike was again forwarded to Sept.

Now that Sept has arrived they are doing more of the same.

Bottomline is if the Fed does hike rates they will intentionally crash the Bond market, stock market, property market.

If they dont raise rates then they will need to do QE 4, which will be the mother of all QE's. In this route they risk losing confidence in the USD it self.

Hence the FED is in a box doomed if they do doomed if they dont.

Edit: All the Fed cronies clowns who are coming out making statements are misdirecting the public, for the positions they gold this is treason. Everyone of them deserves to be hung.

Please understand they cant raise interest rates. Its not a question of inflation, never was.

Low inflation is just an excuse. They purposely misreport inflation. Ask anyone on the street if their living costs have gone up. As anyone how their expenses compare to 5, 10 years ago? everythings gone up. We have alot of inflation real inflation is probably 5%+ a year. Its just that the government numbers wont admit it.

Hence this is not about inflation. This is a debt problem. All the major nations of the world simply have too much debt. Raising interest rates would mean paying a legit sum of money to cycle that debt, which is something they would be unable to do. Hence the Fed and the rest of the central banks of the world are boxed into a corner.

haha, the fed is doomed if they do and doomed if they don't.