It is just one way of viewing the bull market, but the relationship between T-bill yields (Fed Funds proxy) and the HUI Gold Bugs index is an important one. We…
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A stroll through recent and not so recent inflationary history [edit] Some wording and a couple typos cleaned up from original post, no changes to themes... A Cynical Fed is…
Everyone expects Janet Yellen to be a rolling over, inflationist stooge just like they did Ben Bernanke. Bernanke came on board after Alan Greenspan had taken the Fed Funds rate up to around 5% if I remember correctly. Inflationists and gold bugs thought they had it in the bag when ‘Helicopter Ben’ assumed control.
Indeed, Bernanke did what he was supposed to do (per the ‘Helicopter ‘Ben’ script) as systemic stresses began to gather in 2007, addressing that pesky Funds rate, culminating in December, 2008’s official ZIRP (zero interest rate policy). Here again is the chart showing the S&P 500’s ‘Hump #3’ attended by this most beneficial monetary policy.
As noted again and again, the much trumpeted ‘taper’ of QE is not only not a negative for the economy, we have made a strong case that its mechanics are actually a positive, in the near term at least. But putting ZIRP on the table would be a whole different ball of wax.