Thursday, November 26, 2020

Tag: THE GOLD PRICE IS FAKE NEWS

THE GOLD PRICE IS FAKE NEWS

by Egon Von Greyerz, Gold Switzerland:
Lethargic summer markets tend to instil a sense of false security. Stocks and property are near all-time highs, interest rates are at 72 year lows and most investors feel richer than ever. Central banks signal strong economies with indications of higher interest rates and tapering of their balance sheets.

CENTRAL BANK CHIEF BEHEADED
As I discussed last week’s article about the Fed, we must never trust central banks since they are always hopelessly wrong. Sweden is another example of a central bank which has an appalling record in forecasting the economy. And it is not just any bank since I am talking about the oldest central bank in the world – Sweden’s Riksbank which was established in 1668. But age clearly means nothing when it comes to understanding markets and the economy. Below we see the Riksbank’s forecasting record for the Swedish Repo rate. It is just an appalling record which shows that during the last 7 years they have been hopelessly wrong. Several times a year since 2011 they have forecast rate increases of 1-2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} and every year since then, rates have gone lower. In all, they have made 25 incorrect forecasts since 2011. Hopefully their record since 1668 has been more accurate.