{"id":43741,"date":"2019-02-12T09:34:54","date_gmt":"2019-02-12T14:34:54","guid":{"rendered":"https:\/\/olduvai.ca\/?p=43741"},"modified":"2019-02-12T09:34:56","modified_gmt":"2019-02-12T14:34:56","slug":"reason-437-to-own-gold-the-fed-wants-negative-interest-rates","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=43741","title":{"rendered":"Reason #437 to own gold: The Fed wants Negative Interest Rates"},"content":{"rendered":"\n
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Reason #437 to own gold: The Fed wants Negative Interest Rates<\/a><\/h3>\n\n\n\n

And just like that, it seems we\u2019re headed back to quantitative easing\u2026<\/p>\n\n\n\n

After cutting interest rates to nearly zero following the 2008 crisis, the Federal Reserve starting raising rates near the end of 2015 (from 0.25% to 2.5% today).<\/p>\n\n\n\n

Following the most recent hike in December 2018, Chairman Powell seemed hell bent on further tightening, saying \u201csome further gradual increases\u201d were in the cards.<\/p>\n\n\n\n

Then the stock market promptly fell nearly 20%. <\/strong><\/p>\n\n\n\n

Investors were in panic mode and calling for the end of the world.<\/p>\n\n\n\n

The pain was too much\u2026<\/p>\n\n\n\n

Last month, the Fed left rates unchanged\u2026 and Powell removed any language about further hikes.<\/p>\n\n\n\n

Already Powell is capitulating.<\/p>\n\n\n\n

The new chief economist for the International Monetary Fund praised the move, saying she sees \u201cconsiderable and rising risks\u201d to the global economy.<\/p>\n\n\n\n

And no surprise here, but Paul Krugman also supported the Fed\u2019s policy. He\u2019s also worried about a possible recession\u2026 but more worried the Fed won\u2019t be able to cut rates low enough<\/em>.<\/p>\n\n\n\n

Central banks tried raising interest rates, but the market wouldn\u2019t take it.<\/p>\n\n\n\n

Now, the market is putting the likelihood of a rate hike this year at ZERO\u2026 and it\u2019s expecting a rate cut next year.<\/p>\n\n\n\n

Both the European Central Bank and the Bank of Japan were supposed to start tightening policy and raising rates\u2026 now, they are both considering cutting interest rates even deeper into negative territory.<\/em><\/p>\n\n\n\n

And after a 20% drop in US stocks, the Fed has taken its foot off the pedal. But the people still want more\u2026<\/strong><\/p>\n\n\n\n

The President of the Federal Reserve Bank of St. Louis thinks current interest rates are \u201ctoo restrictive.\u201d He too wants lower rates.<\/p>\n\n\n\n

The San Francisco Fed agrees \u2013 they were singing the praises of negative interest rates in a recent research paper, saying they would have helped the economy recover even faster after 2008.<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Reason #437 to own gold: The Fed wants Negative Interest Rates And just like that, it seems we\u2019re headed back to quantitative easing\u2026 After cutting interest rates to nearly zero following the 2008 crisis, the Federal Reserve starting raising rates near the end of 2015 (from 0.25% to 2.5% today). Following the most recent hike […]<\/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":[303,374,7312],"class_list":["post-43741","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-gold","tag-simon-black"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43741","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=43741"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43741\/revisions"}],"predecessor-version":[{"id":43742,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43741\/revisions\/43742"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}