Global Rising Rates Repercussions (4)

US is printing loads of money


Long term observers of gold would note that gold rallies tend to coincide with long periods where returns from other asset class are diminished.

Again, that does not seem to apply for now.

Growth in equity markets will be pared down by higher rates but investors are attracted to potential gains in the respective country's currencies also.

So what gives?

These are the important conclusions:

1) US is printing a whole bucket loads of money.

In order to finance the consumption patterns in America, US dollars in circulation has to rise. As long as there are willing holders of US Treasuries, nothing really bad will happen.