Loading ...Mrs F keeps asking why gold is still a good bet, having risen so much. I say that nothing has changed. America is still spending like a drunken sailor, and really weird people are actually lending the drunken sailor more money to spend. Plus a quarter of the extra money they lend to him each year, he immediately pays back to them as interest. So even if rates don’t fall, the US economy is toast with govt. borrowing increasing 10% a year. If rates do fall, corporate and individual borrowing will balloon (that’s the whole intention of lowering rates) and inflation will continue upwards.
There is no way out.