Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

James Rickards Says Yellen Has Gone “Full-Dove;” Won’t Raise Interest Rates (Video)

  by    4   2

With the Federal Reserve preparing for another meeting, pundits are talking interest rate hikes. Even AP is speculating that a rate hike is unlikely this go-around, blaming problems the “global economy.”

The US job market is healthy. The stock market is up. Home prices are rising. Yet as the Federal Reserve prepares to meet this week, it seems in no mood to resume raising interest rates from ultra-lows. With the global economy struggling and US inflation still below the Fed’s target rate, many economists see little likelihood of a rate increase even before the second half of the year.”

But James Rickards appeared on Bloomberg and said it isn’t just about the world economy. He pointed out that the US economy is “hanging by a thread,” and an interest rate hike would likely throw the country into a full-blown recession. Rickards reminded Bloomberg’s Francine Lacqua that the small hike last December sent the stock market into 10% free-fall, and he said the only reason the market is climbing again is because everybody knows the Fed isn’t going to normalize rates. That, Rickards says, is good news for gold.

The reason stocks are going up is Janet Yellen has gone full-dove. She’s sprouted wings and flies around the room. There is nothing the stock market doesn’t like about free money, and maybe negative interest rates are on the table for the next year or so. That is sort of bullish for stocks, but it’s also bullish for gold.”

WhyBuyGoldNowBanner.070815.590

Highlights from the interview:

“I think of gold as a form of money…so it competes with other kinds of money – dollar, euros, yen, gold – they’re kind of horses going around a racetrack. Place your bets.”

“As investors lose confidence in central banks, which is what is going on…central bankers have told me, members of the board of governors say, ‘We don’t know what we’re doing; we sort of make it up as we go along. We experiment…’ So in that world, where people are losing confidence in central banks, gold does better.”

“There are tens of trillions of dollars of sovereign debt with negative yields to maturity…As gold has zero yield, zero is higher than negative 50. So gold is the high-yield asset in this environment.”

“The reason stocks are going up is Janet Yellen has gone full-dove. She’s sprouted wings and flies around the room. There is nothing the stock market doesn’t like about free money, and maybe negative interest rates are on the table for the next year or so. That is sort of bullish for stocks, but it’s also bullish for gold.”

“I have a technical level [for gold]…$10,000 per ounce…It’s just a simple ratio of physical gold to printed money. [The amount of] physical gold doesn’t go up very much; printed money goes up a lot. So the dollar target goes up more because of all the money printing. But basically, it’s the implied non-inflationary price of gold. If you have to go back to a gold standard, or anything else like it for confidence, that’s the number you must have to avoid deflation. So it is mathematically derived. It’s not a guess.”

“Twenty-five basis points in December threw the US stock market into a 10% correction in the next two months.”

“The US is hanging by a thread as it is. First quarter GDP we’ll find out this week, but it looks like it will come in well below 1%…and there was only a fraction in the fourth quarter. So two back-to-back quarters…growth is extremely weak.”

“The risk is that the economy is extremely weak and you don’ raise rates in recession. You’re supposed to ease in a recession.”

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Peter Schiff: The Price of Everything Is Going Up

As the Federal Reserve meeting wrapped up last week, Peter Schiff appeared on RT Boom Bust. The interview covered a number of topics, including gold, oil prices, the Fed and the Snowflake IPO. The discussion started with the rising prices of gold and silver. Peter said central bank policy is creating a very bullish environment […]

READ MORE →

Peter Schiff: The Fed Is the Biggest Enemy of Legitimate Economic Growth

Last week, the Federal Reserve held its September FOMC meeting. Peter Schiff appeared on the Claman Countdown after the meeting ended, along with Natalie Securities Global Fixed Income Chief Andy Brenner. During the interview, they discussed inflation, the impact of Fed policy, the bubble economy and they even touched on modern monetary theory. Peter said […]

READ MORE →

Peter Schiff: The World Is Going to Reject the Dollar Standard

Peter Schiff recently did a presentation at the Endeavour Silver Town Hall Webinar. He talked about the state of the economy, the US dollar, and gold and silver. Peter said he thinks we’re about to see a gold bull market rivaling the 1970s because the world is going to reject the dollar standard and go […]

READ MORE →

Peter Schiff: If You Understand What Gold Is, You Should Always Have Some

Peter Schiff recently appeared on RT Boom Bust with Ben Swann to talk about safe-haven assets in the age of COVID-19. Peter made the case for gold, saying if you understand its role as money, you know you should always have some. He also debated Swann on the long-term value of bitcoin.

READ MORE →

Adrian Day: The Fed Is Out of Control and That’s Bullish for Gold

Adrian Day did an interview with Kitco News and said gold will finish the year over $2,000 an ounce and investors shouldn’t worry about short-term profit-taking and consolidation. Why? Because the Federal Reserve is out of control. Day is the CEO of Adrian Day Asset Management and also works with Peter Schiff as the portfolio […]

READ MORE →

4 thoughts on “James Rickards Says Yellen Has Gone “Full-Dove;” Won’t Raise Interest Rates (Video)

  1. mosfet says:

    WTF #1 : “But these are ‘outside’ risks.”. Nope. The fragile economy originates from the ‘inside’. More specifically due to the Fed & Obama blowing massive bubbles thru QE2, QE3 & never ending ZIRP.

    WTF #2, “but China’s stabilizing”. Nope. The PBOC pumping $1T into markets in the span of only a single quarter is hardly ‘stabilizing’ unless you consider QE on an Unprecedented level a healthy long-term solution.

    The MSM isn’t complacent, they’re complicit.

  2. andrew says:

    Goldman’s Jeffery Currie, was on CNBC today calling for $1000 gold and what Goldman want they get since they are the market

    • Peter says:

      Given DB’s admission of price manipulation just a week or two ago, Goldman may in fact be somewhat reluctant to jump into the limelight and demonstrate that they’re still a major player in that game.

  3. bob gelder says:

    Why do these interviewers ask a question and then interrupt before I get an answer? Shut up already and let the guest speak!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now