/biz/ - Business & Finance

>>30182347

>>26026995

Sorry; I presumed that FR was FM in the U. S. because people usually call it FM here, but it must be AG if that's what it says on your broker. I'm not an American, so didn't know.

>>26026815

David Brady is more credible than Chris Vermeulen as a chartist.

https://www.sprottmoney.com/blog/Stimulus-on-Steroids-Cometh-David-Brady-Jan-14-2021

"Recent comments from several Fed members regarding the taper of monthly monetary stimulus seem disingenuous at best, given that the Fed will be required to buy the majority of the new treasury bonds issued to finance that fiscal stimulus, especially as tax receipts fall. This comes on top of a truly gargantuan amount of existing treasury bonds maturing this year.

The Fed will need to buy most if not all of this debt to avoid steep rise in bond yields. Higher interest costs to the treasury could expose the risk of insolvency in the United States, something the Fed will do everything to avoid.

With massive fiscal and monetary stimulus to hit the U.S. this year and the need to cap bond yields, the biggest casualty is likely to be the dollar. This does not mean that the dollar can’t see significant short-term bounces, but the overall trend is likely to continue to be lower. Such a backdrop is only good for precious metals and miners, especially if inflation expectations rise while nominal yields are capped. The resulting decline in real yields would also support higher Gold and Silver prices.

...

There is further downside risk in the short-term, but the longer this correction takes and the lower we go, the bigger the catapult shot to the upside thereafter. Massive stimulus and an asymmetric risk to the downside in real yields make such an outcome highly probable.

..

In conclusion, we could suffer more pain in the short-term, but given that the forecast stimulus-on-steroids is now pending, it won’t be long before we are focused on how high we could go rather than where the bottom is."