Societe Generale’s global strategist, Albert Edwards, is warning that central banks globally will be trapped in a long cycle of raising interest rates as they continue to fight inflation. In other news, former financial planner, Kelsey Willaims, is explaining how gold prices aren’t impacted by recessions or depressions but by the actual loss in purchasing power of the U.S. dollar. 

Business Insider/Carla Mozee
Markets are entering a multi-year era of global interest rate hikes as central banks fight inflation, Societe Generale says

Global central banks will be in a long-running cycle of raising interest rates to fight stubborn inflation, an era Societe Generale’s global strategist Albert Edwards has dubbed the “Great Melt” in a note published Thursday.

With that, Edwards has declared an end to the “Ice Age” theory he formulated for the global economy in the 1990s. Edwards’ long-held view was that deflation would overtake the global economy, much like it had in Japan, and drive long-term bond yields down towards zero and spark a collapse in stocks.

The “Ice Age secular theme of lower lows and lower highs in Fed Funds and bond yields has already been broken in this cycle,” he wrote in referring to – and agreeing with – commentary from Bob Prince, co-chief investment strategist at Bridgewater Associates, the world’s largest hedge fund.

You can keep reading, here.

GoldSeek/Kelsey Williams
A Recession Is NOT “Good For Gold”

Financial writers and gold bulls have both taken their turn at referring to a potential recession as having a positive impact on gold prices. The commentary varies somewhat, but here are a few examples…

“the price of gold would ‘benefit’ from a recession”; “the risk of recession will drive investors into gold”; “a confirmed recession is all gold needs to move higher.”

The statements above and others like them, stem from the assumption that bad economic news is good for gold. Further (they incorrectly assume), the worse the economy is, the higher the gold price.

Not true.

Continue reading, here.

CNN Business/Chris Isidore
America just got a $100-a-month raise

Next time you stop at a gas station, think of it as a $100-a-month tax cut. Or a maybe $100-a-month raise.

The steady drop in gas prices over the last few months has turned into an unexpected form of economic stimulus, coming at a time when the Federal Reserve is trying to cool the economy and battle rising prices with higher interest rates.

Since hitting a record of $5.02 a gallon on June 14, the national average price for regular gas is down $1.10, or 22%, to $3.92, according to AAA. That average has now fallen for 67 consecutive days.

You can keep reading, here.

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