Loading ...The USD has remained strong, and even strengthened during the last two weeks as gold shot up (DX-Y up from 102.89 to 104.42) which is the opposite of normal. And the bond yields are rising even though the Fed cut rates; a futile attempt by the Fed to imply they are in control when they aren’t. Which means bonds (debt) are being sold, dollars and gold are bought. Why do people want USD? Because they need to pay off debt. If you are going to pay down what you owe, you need the currency. So if interest rates are rising which makes debt worth less (not worthless; yet), and banks are requiring debt to be paid down, which they will only do if they think you can’t afford the repayments, plus if banks are calling in debt, then they are much more cautious about lending it in the first place, then we have a debt crisis. Not a stock market or currency crisis, although the panic will spread there too. If true it means that we are headed for stagflation – deflation of asset values, inflation in living costs.
Potential investment strategy: Now: sell the ranch and buy gold. Three years: sell the gold and buy four ranches.