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Federal Reserve Rate Hike At ‘Precisely The Wrong Time’ – Faber
Federal Reserve Rate Hike At ‘Precisely The Wrong Time’ – Faber
Marc Faber, the editor of the Gloom, Boom & Doom Report, warned yesterday that the Federal Reserve has raised rates at “precisely the wrong time.”
Speaking to CNBC just before the interest rate decision, Faber warned that it’s the wrong time because “the global economy has decelerated very badly, and many countries are already in recession, or going into recession.”
The rate hike separated the Fed from other major central banks – The ECB, Bank of England, PBOC, the Bank of Tokyo and elsewhere that are all battling deflation and desperately trying to stimulate some form of sustainable economic growth.
Yesterday’s hike still leaves U.S. monetary policy extremely loose, and Fed officials have signaled they will act cautiously from to nurture a very tenuous recovery indeed.
Faber said the outlook for American equities looks weak:
“I don’t think U.S. stocks are attractive by any measurement. They are expensive and earnings are going down, and if anything, eventually interest rates will be higher.”
Marc Faber is a strong advocate of owning physical gold and silver which he describes as being a way to become “your own central bank.” He believes an allocation and diversification into physical bullion will serve as vital financial insurance and that storing gold in Singapore is prudent as Singapore is the safest place to own bullion in the world today.
Video can be watched on CNBC here
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DAILY PRICES
Today’s LBMA Gold Prices: USD 1065.85, EUR 982.71 and GBP 713.06 per ounce.
Yesterday’s LBMA Gold Prices: USD 1065.75, EUR 975.65 and GBP 710.33 per ounce.
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Always the very worst time, never the absolutely correct time...
Why are these people in charge of anything?
Alasdair Macleod on SD Weekly Metals & Markets Discussing Fed Hike, Financial Market Instability & His Best Trade for 2016: Short the Dollar by Buying Silver
http://thenewsdoctors.com/?p=566082
THERE IS METHOD TO YELLENS MADNESS and call it a prediction of where the future is going.
The FEDS goal was to achieve NIRP because this economic sucker is slowing everywhere.
To do this raise the rate .25% then when the house of cards starts to RAPIDLY crumble make it -0.5%. You will all be so thankful and sneakily they got the NIRP in there with no rioting.
The other way was to wait and as it slowly collapsed apply -.5% everybody would have rioted.
Sometimes, no, nearly all the time now, I wonder at the naivete or the utter cluelessness that ZH employs when posting comments of others as to the FED's actions.
Faber and ZH know damned well the FED is NEVER wrong. And yet article after article appears about the FED's raising of rates beng a stupid move, the precisely wrong move, or some other negative about the FED's actions.
It would be one thing if ZHrs, most of them, didn't already know the FED is only doing what the Jewish Mafia orders them to do, and to continue to deny this takeover the U.S. by secular zionists is merely sticking fingers in your ears and running around in circles saying, "na-na-na-na can't hear you!!
...tip of the cap to Neil Stephenson who predicted all that is unfolding now in Cryptonicom. Too bad he got bored yakking about the future and turned to early roots of the Scientific Method.
Singapore is NOT China, India, Indonesia nor Thailand.
An entity onto its own. The Switzerland of Asia.
It's NOT a HIKE !
It's an "adjustment" to make it look like the criminals that created the problem are providing the solution.
you would have to be nuts to store your gold in Singapore, unless you live there.
Lots of Chinese Mainlanders are buying stuff there in Singapore I read--gold, apartments, etc.-- cause they're scared of thier gubmint. Many of them are still buying houses [very overpriced] in Melbourne an RE artcile said. I don't know how they get their money out since I read their gubmint has a limit of something like $10k or $50k. I still can't figure out how so many people there in the PRC have $500,000 - $1.5 million or moar laying around in cash.
But in general, you are correct.
don't spread this around, but I think they got all that cash cause they STEAL it.
Corruption might be a nicer word.
Its only wrong cos it should have been done a year ago, and the same in the UK.
Actually, 8 years ago would have been fine. Stawks and RE are in for a much bigger correction now. Even my old shack that I bought [and sold] awhile back for $108k is "valued" on Zillow at over $480k.
Crazy stuff.
I like faber, but I'd like him more if he were right
It's been hard for all the great precious metals prognisticators to be right because they've been fighting the Fed. Not trying to defend Faber , or any of them. However, I wish they could honestly say, like me, I have no idea when the crash is coming, but every time I have a little extra I shed my Federal Reserve Hiney Wipes for something worthwhile. Of course talk like that doesn't sell newsletter subscriptions. Unplugging from the system a little bit each day is so liberating.
I don't even own a TEEVEE!
The prognosticators are not so great. More like proctologists.
I also think he has more than the average brain cells.
He's my take. The global equity market is due for a massive dump, probably nothing new to hear as well discussed on this site.
I sold all my Gold at 1188 on the way up, and brought productive farmland in France (CAP).
When the market gaps heavily down there going to be a liquidity problem, and people will be scrambling for cash, so Gold may drop with the shock. This will be the buying opportunity.
Look back in history, rising rates and bonds dropping are good for Gold.
The more I study gold prices the more I agree with your last sentence. I think we still have some time to buy gold if that is your preference.
gold fighting a good fight at 1050, but eventually 1000 will be breached. patience. right now lead by the 500's seems most prudent...
If they didn't raise rates, the healdine would have read: "Precisely the wrong time to not raise rates."
At this point, whatever they do will be wrong. Of course choosing the least bad option is just as unlikely......
Totally agree. 4 years ago they had options, now they really don't have any viable options.
storing gold in Singapore is prudent as Singapore is the safest place to own bullion in the world today.
Not for me it ain't! If you don't have it in your possession, you don't have it.
You are correct. There is still counter-party risk. At one time, Noriega's bank was the safest place in the world to put illegally procured funds.
Its very simple the experts can't even agree on the basic concept of what constitutes a recession. That means chaos.