Interest Rate Increases & Continued Gold Devaluation
By JC Collins
I’m just going to come right out and state it with absolute clarity. Gold will continue to depreciate.
Not only that, but the Fed will continue with the planned incremental interest rate increases which are set to begin at any time now. The normalization of monetary policy is considered impossible by many analysts and economic commentators. This is mainly because the larger play, being the transformation of the monetary framework, is not fully understood.
The incorrect assumption is that the US dollar will be replaced as the international reserve currency by the Chinese yuan, which in turn will cause the USD denominated assets (Treasuries) in the foreign exchange reserve accounts around the world to be “dumped”, leading to a flood of dollars coming back to American shores and causing the ever-threatened and often-predicted hyper-inflation.