Another infamous Jackson Hole meeting, in which the FED puts on a grand display of epic jawboning has once again come and gone.
The doves were in full flight as the new(ish), Federal Reserve Chairman Jerome Powell took the stage and signaled that interest rates would once again remain near their historically low levels.
This sent stocks surging to new heights, pushing the envelope as they continue to tick higher and higher, increasing the distance that they will inevitably have to fall, when the next big crash descends upon us.
Stocks, housing, gold, silver, nothing goes up forever and a major correction lies in wait for the general markets as a whole, which has experienced a record breaking bull market on the back of intense consumer confidence.
Yet, sadly, people are once again falling into the old traps that they have time and time again, throughout history. Once again putting their faith blindly in government officials and central bankers, who quite bluntly, have proven repeatedly that they don't have a clue what they are talking about. Jerome Powell being no exception.
The fact of the matter is this, interest rates cannot and will not be raised, unless an intentional crash is meant to be triggered, a crash that some, especially those on the far left would be more than happy to see occur, due to the damage that it would inflict on President Trump's chances of getting re-elected in 2020.
Yet, although I once believed that this would be the approach that the "elites" would take in dismantling President Trump's dominance in the Oval Office, I believe that they are coming to the same realization that I have already reached, which is that even a market crash won't reduce his popularity amongst the right, which is record breaking and only rivaled by Abraham Lincoln.
The lines in the sand have been drawn and the MSM have created a hostile political climate that is going to one day come back to bite them you know where, as when the tables are turned, so too will the rules of the game against their candidate of choice.
Despite this increasingly hostile political climate, the market is showing that it has faith in "America's First" policy being pursued by the President's administration, but for how much longer can the constant assaults last before it brings the entire system to its knees and forces a crisis upon not just America, but the West as a whole?
Taking note of this chaos, countries such as Russia and China are buying record amounts of gold, while others such as India are doubling down on silver.
Meanwhile, savvy investors continue to dollar cost average into both precious metals, taking advantage of these artificially reduced prices while they can.
This puts the FED in between a rock and a hard place, giving them little to no room to move, as the last thing that they want to be blamed for bringing this house of cards down by ratcheting up interest rates in any meaningful way.
Therefore, moving forward you can expect more of the same of the new FED Chairman Jerome Powell and his ilk, nonsensical, meaningless jawboning, and nothing more. IE, business as usual.
- As First Seen on the Sprott Money Blog