Alasdair Macleod: America's stagflation

11:37a CT Thursday, October 26, 2017

Dear Friend of GATA and Gold:

In his commentary today, GoldMoney research director Alasdair Macleod argues that central banks already have lost control of interest rates as the world approaches another financial crisis.

Macleod writes: "In short, the Fed has lost control over interest rates already and seems hardly aware of it. The Fed thinks price inflation is less than 2 percent when in truth it is closer to 10 percent. Combine wishful thinking with groupthink and you have an explanation for current monetary policy. The Fed's interest rate increases are even now ex-post-facto, leading us toward the crisis stage of the credit cycle, when the debt trap snaps firmly, finally, and forever shut."

About gold, Macleod adds: "Beyond the short term, the outlook for the gold price fits into the turning-point of bond yields rising, equity markets weakening, and the dollar embarking on its next downward phase. The bullish relationship between gold and increasingly negative real interest rates should emerge into the open, when it is more generally realized that the central banks are powerless to control interest rates and the pricing power of their currencies."

Macleod's commentary is headlined "America's Stagflation" and it's posted at GoldMoney here:

https://www.goldmoney.com/research/goldmoney-insights/americas-stagflati...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org