Alasdair Macleod: The Fed's in a bind

Section:

2p ET Thursday, December 3, 2015

Dear Friend of GATA and Gold:

If the Federal Reserve really starts raising interest rates, ending decades of declining credit costs, it may prompt a vast change in world economic conditions, GoldMoney research director Alasdair Macleod writes today.

As a result, Macleod writes, "The next financial crisis could manifest itself in the coming months. ... If so, it will mark the end of current central bank monetary policies and state control of markets, as free markets reassert realistic pricing. Government bond yields will normalize, stock markets will fall, and banks will almost certainly fail. Supressed commodity prices will rise as banks, short through paper contracts, will be forced to close their positions. Credit default swaps, where the banks are collectively exposed to losses when interest rates rise, will be a further source of grief."

Macleod's commentary is headlined "The Fed's in a Bind" and it's posted at GoldMoney's Internet site here:

https://www.goldmoney.com/our-research/goldmoney-insights/the-fed-s-in-a...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org



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