OILies GOLDies r going nuts because the markets believe that the central banGers are NOT doing their jobs in controlling prices via interest rates or more fancy name called monetary policies. The ONLY, yes, the ONLY way stop such astounding jump is to hike rate HIGH HIGH to choke off economic growth. I know this is beri counter intuitive but it is the ONLY way.
IF central banGers don't do OUTsize hike like 1% or 2% in 1 hike, this OILies GOLDies just won't let up.
The markets are ALREADY sending beri beri clear signals to the central banGers: IF u don't act and HIKE rates high high to STOP this frenzied rate of global growth, the markets WILL do it themselves by pushing UP all the materials needed for growth. The main problem is that growth is just too high for supplies to catch up. The ultimatum has been thrown into the banGers' face, will they take up the challenge? Answers coming yr way in July when Mr. Tricky set rates! Hang on to your hats!!
No comments:
Post a Comment