{"id":16890,"date":"2016-01-24T20:51:38","date_gmt":"2016-01-25T01:51:38","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16890"},"modified":"2016-01-24T20:51:38","modified_gmt":"2016-01-25T01:51:38","slug":"betting-on-deflation-may-be-a-huge-mistake-heres-why-2","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16890","title":{"rendered":"Betting on Deflation May Be a Huge Mistake. Here\u2019s Why\u2026\u2026."},"content":{"rendered":"
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Betting on Deflation May Be a Huge Mistake. Here\u2019s Why\u2026\u2026.<\/a><\/h3>\n
Precious metals investors heading into 2016 worry the dollar will continue marching ahead, right over the top of gold and silver prices. The Fed is telegraphing additional rate hikes throughout the year, and commodity prices \u2013 led by crude oil \u2013 are falling. There have been tremors in the biggest beneficiary markets of all when it comes to the Fed\u2019s QE largesse \u2013 U.S. equities and real estate. And the possibility of a recession is growing, both in the U.S. and around the world.<\/div>\n<\/header>\n
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\"\"There are plenty of reasons we might see even lower official inflation numbers and a stronger dollar in 2016. But don\u2019t think for a second that consumer prices or living costs will fall. They haven\u2019t, they aren\u2019t, and they never will in a sustained way \u2013 thanks to the Fed\u2019s creation in 1913. This is where the deflationists have it wrong.<\/span><\/p>\n

The impact of further disinflationary forces or even a deflationary episode on precious metals prices is a bit harder to predict.<\/span><\/p>\n

The bear case for\u00a0<\/span>precious metals<\/a><\/span>\u00a0is rather simple. Should metals trade like commodities, they are likely to follow other raw materials lower. If we get a liquidity crunch akin to the 2008 financial crisis, just about everything will be sold as investors raise cash to meet margin calls or flee to the dollar as a perceived safe-haven.<\/span><\/p>\n

There is also the possibility that metals prices will simply be managed lower. Growing numbers of investors realize that Wall Street is not a bulwark of free markets. Major banks have admitted to rigging markets against their own customers, and the Federal Reserve aggressively intervenes in markets in its quest to centrally plan the world economy. Why wouldn\u2019t the Fed also be active in trading precious metals? Those dismissing the notion that metals prices are manipulated are naive.<\/span><\/p>\n

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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Betting on Deflation May Be a Huge Mistake. Here\u2019s Why\u2026\u2026. Precious metals investors heading into 2016 worry the dollar will continue marching ahead, right over the top of gold and silver prices. The Fed is telegraphing additional rate hikes throughout the year, and commodity prices \u2013 led by crude oil \u2013 are falling. There have […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[11943,11941,11944,151,202,303,305,426,11467,647,661,662,11942,839],"class_list":["post-16890","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bear-vs-bull","tag-bruno-de-landevoisin","tag-clint-siegner","tag-commodities","tag-deflation","tag-fed","tag-federal-reserve","tag-inflation","tag-money-metals-exchange","tag-precious-metals","tag-qe","tag-quantitative-easing","tag-stealthflation","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16890"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16890\/revisions"}],"predecessor-version":[{"id":16891,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16890\/revisions\/16891"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}