
| Daily Jurojin - Friday, November 6, 2009 |
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What This Week's Federal Reserve Decision Means For You!
Absolutely nothing! It possibly does have implications for commodity prices. That's because the Fed threatened no action on monetary policy. It is impotent when it comes to raising rates because there is little in the way of above average growth for economists to worry about. A return to the go-go days of the present decade, buoyed by accelerating real estate prices helping fuel an addiction to consumption, is simply not on the table. From that perspective there is very little need for the Fed to raise rates. Suddenly the economy is ultra-sensitive to any changes in the structure of interest rates. The U.S. economy has, over the course of the past two years become a hostage to cheap monetary policy, just as Japan has done during its decade of torpor. What the FOMC statement did deliver was pretty much another nail in the coffin of the greenback, however. By pretty much guaranteeing no change in the short fed funds rate, the chances of a widening in yield differentials against competing currencies is in favor of those other currencies. The Fed is truly in a bind. As more investors realize this over time, the less appeal it will hold and that means a lower dollar.
Did anyone ever tell you what that might mean for the price of commodities? If you're left in any doubt then I suggest you try to join two of the finest investment minds on the planet. Sean Brodrick and Kevin Kerr will host a special webinar this lunchtime to discuss prospects for commodity prices into 2010. for Friday's LIVE event at noon. Remember that attendance is strictly limited to the first 1,000 participants through the door! If you're wondering ... - What the big trends in 2010 will be ..
Tyche Research |


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