Sep 12, 2007

Casey Research: Fed already has cut main rate by third of a percent

Casey Research economist Bud Conrad reports that for a month already through its daily bond market operations the Federal Reserve has effectively reduced the Fed Funds interest rate by about a third of a percentage point below the Fed's nominal "target" rate of 5.25 percent.

"Watch what the Fed does, and not what they say," Conrad cautions. "While talking about holding the line against inflation, they have already gone ahead and made a cut in the Fed Funds rate. It is our opinion that their rate cutting has only begun. ... Investors need to understand that further cuts in the Fed Funds rate, which effectively bail out the bankers by injecting money into the system, risk triggering an exodus from the dollar and causing a knock-on currency crisis. That is the scenario investors want to be preparing for."

You can find Conrad's report at the Casey Research site HERE.

Blogger's Note: This is my 300'th post since I started blogging on July 10 2006. Those of you that have been reading the posts have accumulated all necessary knowledge and information to weather out the approaching financial "tsunami".
A financial storm of gargantuan proportions is brewing just below the economic horizon and we have already witnessed some heavy thunderstorm clouds and lightning activity in the vicinity (please excuse the met parallels).
So stay tuned for more up-to-date reports as this generational economic cycle unfolds, and dont't forget to keep buying gold and gold stocks on dips!

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Anonymous Anonymous ΕΙΠΕ (SAID)...

Keep on the good work.
He who has ears can hear and he who digs can find.
As a Chinese philosopher said, if you don't actively attack the risks surrounding you, they will eventually attack you.

September 12, 2007 2:46 PM  
Blogger Chrysotheras ΕΙΠΕ (SAID)...

How very true!
..and as Doug Casey says:
"Crisis = Opportunity"
So here's the chance of a lifetime!

September 12, 2007 4:37 PM  
Anonymous Arkas ΕΙΠΕ (SAID)...

Unfortunately still gold prices remain pretty low.
It's the dollar that is in trouble and unexpectedly there are still people who believe Europe's socialists. Monthly gold price was raised just 6% in dollars, while in EURos the percentage is only 3%.

Chrys, it wouldn't be a bad idea to embed a daily gold/euro price for your European friends!

September 13, 2007 11:34 PM  
Blogger Chrysotheras ΕΙΠΕ (SAID)...

You certainly got a point there Arkas. But keep in mind, though, that all FX's are intrinsically tied to good ol' USD, indirectly via their respective economies. What will ensue next is the so called "competitive devaluation".
Stay tuned for that interesting episode!

And BTW, I do have a gold-versus-other currencies live chart embedded somewhere on the menu.
Look for the "Gold price charts by" and click it to pop up the chart.
Once there, click the "Currency" tab on the toolbar above the chart and select your favorite "fiat" currency et voila'!

September 14, 2007 1:42 AM  
Blogger Argentum Aurum Europa ΕΙΠΕ (SAID)...

300 posts ... hi ho ! Keep on with your good work. Congratulations and best wishes for a golden future.

September 14, 2007 11:48 PM  
Blogger Chrysotheras ΕΙΠΕ (SAID)...

@Argentum Aurum Europa said:
Keep on with your good work. Congratulations and best wishes for a golden future.

Thank you for your encouragement my "Fellow in Arms"...
May I also add that with your excellent blogs, you're doing a very good presentation of PMs and the gold cause yourself!

September 15, 2007 2:35 AM  
Anonymous Arkas ΕΙΠΕ (SAID)...

And BTW, I do have a gold-versus-other currencies live chart embedded somewhere on the menu...

Find it, thanks!

September 15, 2007 5:08 PM  

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