This article was submitted by Matt Malleo, SchiffGold Precious Metals Specialist and Managing Director. Matt was formally educated at Cornell University where he studied business. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
The following is a fictional account of a day-in-the-life of a teenage boy named Mike Stockton living in 1967. Mike’s story is recorded as a set of entries made in his financial diary, outlining his economic activity, a summer night date, and his hopes of buying the car of his dreams.
On Thursday, the Bank of England will meet to decide on an interest rate cut. It’s widely expected by economic officials that the UK’s central bank will cut rates 25 basis points, from .50% to .25%. What will this mean for a country already reeling from the economic crunch post Brexit?
A rate decrease will prove to mark a historic low. According to International Business Times:
The BoE has kept interest rates at a historic low for the last seven years and the expected cut would bring the benchmark into uncharted territory. When Britain’s central bank cut the benchmark to 0.5% in 2009, the lowest since the BoE was founded in 1694, it described the figure as an ‘emergency rate’ and for the past seven years savers, institutions, fund managers, and economists have believed a rate rise was just around the corner.”
Few anticipate a rate lowering to zero or even negative levels; however, it’s still not out of the question. Other central banks, including Danmarks Nationalbank, the European Central Bank, Sveriges Riksbank, the Swiss National Bank, and Bank of Japan, have all cut rates to or below zero over the last few years.
With today’s FOMC announcement that a September rate hike is off the table, it looks like it will be the end of the year before Yellen and company change their monetary policy. It’s business as usual. Yesterday Peter Schiff appeared on CNBC’s Futures NOW in a raucous exchange with setting the record straight about how close his predictions have been about the Fed’s past actions. Peter also sparred with TJM’s Jim Iuorio about the deeper motivations behind the Fed’s actions.
This article was submitted by Matt Malleo, Managing Director at SchiffGold. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
In his book Crash Course: The Unsustainable Future of Our Economy, Energy & Environment, author Chris Martenson describes the three types of wealth. Following is a brief breakdown of those three wealth categories and in which types you should focus your investment strategy. (For further reading on this topic, I suggest Crash Course and Second Chance by Robert Kiyosaki. Both books were referenced in the following article.)
The three types of Wealth are: primary, secondary and tertiary.
