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Rumors are echoing in the corridors of power in Wall Street and Washington — whispers about Fed Chairman Ben Bernanke’s secret plan for interest rates.
The Fed on Aug. 9 pledged to keep the benchmark rate near zero until at least mid-2013. Now, the rumor is that “Helicopter Ben” is seeking to force down longer-maturity bond yields — in a last-ditch attempt to boost the economy.
The Fed may decide at its Sept. 20-21 meeting to replace short-term Treasury securities in its portfolio with long-term bonds in a bid to lower rates on everything from mortgages to car loans, according to economists at Wells Fargo & Co., T. Rowe Price Associates Inc., Barclay’s Capital Inc. and Goldman Sachs Group.
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| Wags say Bernanke drops money from helicopters — I use them to find hidden gold values! |
And Bernanke himself told an economic conference in Jackson Hole, Wyoming, on August 26 that the Fed has “a range of tools that could be used to provide additional monetary stimulus.”
Mind you, the 10-year note is only yielding about 2 percent now. But even on the rumor of this shift in Fed policy, Wall Street heavyweights are rumbling there could be unforeseen consequences from such a move.
You want to know what I think will happen? The gold market, which is already hotter than hell’s kitchen, could reach critical mass!
Why? Four Important Reasons!
1. Lower rates fuel fears of higher inflation — so gold is bought as a hedge against inflation.
2. Lower returns on Treasuries drive investors into riskier assets in search of a higher return. This can boost equities and most commodities — including gold.
3. Lower returns on Treasuries reduce demand of U.S. dollars, causing the dollar to fall. Since gold is priced in dollars, as the buck goes down, gold usually goes up.
4. Finally, looser monetary policy implies that the economic situation is not as rosy as many would like to believe, so investors buy gold as a safe haven asset.
Result: Investors who have never even thought about owning gold before will rush into the metal. This could be the critical thrust we need to drive gold above $2,000 an ounce, then $2,300 — and potentially much higher!
And it’s not just gold. Commodities of all types — precious metals, agriculture, energy and more — are poised to rocket on Bernanke’s gambit!
Now for the Good News: You Can Protect Yourself and Profit from the Whirlwind of Trouble Bearing Down on Global Markets
But you don’t have to sit there like a lump and wait for Washington’s fat cats to ruin your life. You have a choice — you can choose instead to take control of your own investing destiny. And that starts by watching the new video I filmed with master commodity trader Kevin Kerr. You can watch our urgent video, filled with actionable information, by clicking this link.
You absolutely do NOT want to miss the time-sensitive recommendations that Kevin and I give in this video, including …
A Chinese Miner That Could GIVE AWAY Its Silver and Still Make Gobs of Money! This company is expanding its resources and has plenty of cash reserves, and it recently thought its stock was so cheap, it started buying it back! If silver goes to $100 an ounce — which is very possible in the next couple years — this stock could triple!
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When these videos go offline — Thursday, September 15, 2011 — your last chance to see the important and powerful investment ideas in the video will be over, and …
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Don’t waste this opportunity. To view the video, click this link and it will begin playing on your screen immediately.
Yours for trading profits,
Sean Brodrick and Kevin Kerr
