Last week Donald Trump broke the theoretical "Chinese Wall" that is supposed to exist between the Government and the Fed when he offered a stunning rebuke of the Fed's current policy to continue raising interest rates.
Though, it's really more like "nudging" rates up at a snail's pace. Gold shot-up in price immediately after Trump's ill-advised comments recorded on CNBC it the tape, more than offsetting a vicious sell-off in the gold price that occurred in the paper derivative gold markets in London and New York.
The Office of Management and Budget further revised higher its Federal spending deficit forecast for FY 2018. The original forecast was under $500 billion. The latest forecast is nearly $900 billion. Without a doubt, we believe the spending deficit will top $1 trillion this year.
- Source, Wall St for Main St
