The Fed raised rates by 75 basis points, even the Fed with all their desire to control inflation recognized that 100 points would have been catastrophic.
The heads of all major banks were taking questions from concerned lawmakers; even the top dogs on the hill want more information.
Make no mistake, this is as delicate as it gets. No wiggle room here.
One issue that is not on the front burner, but it will find its way towards the front of the line. Debt, how will people pay their debt.
Do you eat, pay for gas, or pay your debt. Many are going to face very tough decisions.
This is the elephant that’s about to enter the room. Debt has more than doubled since the 2008 crisis; but that’s not an impressive statement.
The current debt level has never been remotely in this neighborhood…this is it.
We are witnessing the highest debt ever.
We have entered a chess tournament, checkers is out the window. Interest rates are going up like the space shuttle; so, at what point do you trigger defaults, and enter THE CRISIS…THE BIGGEST OF ALL.
If the above mentioned starts to unfold, precious metals will almost become a requirement in protecting your assets. (IF) is just trying to be polite; it´s more realistically WHEN.
Short-term: Headlines are your buying opportunities.
Long-term: Fundamentals are your guide.
Much success to all.
London – Singapore – United States Canada
Australia – China – Switzerland
Brinks – IDS – Loomis – The Perth Mint