Rising rates: So, what’s the big deal?

If you give it more than 5 seconds of brain time, it’s too much. Of course, Yellen was going to raise the Fed funds rate today. Free market forces have already done it for her over the past four or so weeks.

She could no longer not raise rates any more than I could stop ISIS all by myself, dead in its tracks on a moment’s notice.

Or change today’s weather. Or any market for that matter. All of this stuff is preordained in advance by the powers-that-be which are essentially …

Raw human emotions on a mass scale repeated over and over again in fairly regular rhythms.

The world is simply a great Shakespearean play, repeated over and over again, and the only things that really ever change are the actors on the stages.

Yes, I’m talking social/political/economic cycles of the strongest kinds, all now coming together almost simultaneously for the first time since the Great Depression.

Fed Chairman Janet Yellen has no real power to influence America’s economy.

My team, myself and my Artificial Intelligence neural net, deep machine-learning models are on top of it and I have labeled it the “E-wave” …

The “E-wave” is those repetitive periods in history where some of the greatest forces known come together and give birth to revolutions, the rise and fall of civilizations, the death of currencies and the rise of new monetary systems, to rebellions, civil discontent and war, to terrorism and yes, even international world wars.

I’m not saying this to frighten you, though you should certainly be concerned enough to take the right measures to protect your family’s health and wealth as soon as possible …

And avoid the sheer destruction that will brought down on the world over the next few years by leaders either ignorant of what I speak of or who are in outright denial.

Or are instead committed to beating the cycles of history but largely for their selves and federal government interests … all the while taking from you to protect themselves and their ethically, morally and financial bankrupt souls.

Excuse me for the pontificating. But the latest rendition of the E-wave is now striking like a tsunami, and the next four to five years are going to be like a roller-coaster ride through hell for the entire global economy.

For now, and some time to come, interest rates are going to rise, virtually non-stop. Bond prices in Europe, Japan and the U.S. will sink terribly, for months and even years-on-end.

Many will say inflation is coming, and indeed, we should see a very slight uptick in inflation but largely in this country only.

It won’t be the inflation you’re familiar with. It will be inflation caused by …

A. Plunging confidence in governments’ ability to pay their debts, bond markets getting hit the hardest as a result.

B. Plunging confidence in the ability of Europe and the euro to survive.

C. Plunging confidence in Japan’s ability to survive.

D. Plunging confidence in the social order of most of the world. Think stressful geo-politics here. A deepening cold and possibly hot war with Russia. More domestic and international terrorism.

E. Plunging confidence in leaders’ abilities to go with the flow instead of fighting the forces head-on, making it all that much more volatile and loss-precedenting in the markets …

xxxxxx
A run on a bank during the Great Depression — which was the last time that the social, political and economic cycles aligned as they have now.

Turning everything you thought you ever knew about markets and asset classes inside out and upside down.

For instance, in the months and years ahead, you are going to see …

ArrowGold rise with soaring interest rates and a rising U.S. dollar.

ArrowStock markets, mostly in the U.S. first pull back then catapult to Dow 22,000 … then 28,000 … then 32,000 and probably something north of 45,000 by the year 2020.

ArrowA new underground black market for all kinds of asset hoarding, including a new underground black market for gold.

Even though most of the world, including the U.S., will be in a great depression.

I’ll leave you with these additional “big picture” thoughts for today’s “official” Fed funds rate hike …

BulletIt was overdue.

BulletIt is not likely to cause anything more than a few minutes of jumpy trading in the markets.

And it will certainly NOT change the big picture, which is historically repetitive, cyclical — and has been around for thousands of years.

Oh, by the way, do you know one of the flashing yellow signs of great civilizations starting their final declines?

I’m talking the Roman/Ottoman empires. The Spanish Empire. The rise and fall of Great Britain, the Venetian Empire, and more.

Historically it’s always been when the bankers and financiers made such inroads into government that they essentially took those governments over.

That’s been happening for years in the U.S.

But now, it’s reaching critical mass. President-elect Trump has put Goldman Sachs’ number two man — Gary Cohn — in charge of our country’s influential National Economic Council.

And I can tell you this from personal experience. Cohn is not a good guy. He’s not on your side.

Stay safe and keep your pulse on the tsunami-like E-Wave now starting to hit the world with a vengeance.

Best wishes,

Your E-wave leader,

Larry

 

Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader. Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.

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Comments 36

robert roby December 14, 2016

could you please explain to me how the ownership of gold works. If I buy a contract for gold how do I get my gold when I want to? On the other hand, if I am holding gold what can I buy with it. Sure. I can sell it but it could be at a loss and then what do I do? Please explain.

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ragnar1 December 14, 2016

STOCKS WOULD WIND UP LIKE NOLAN RYAN ROOKIE CARDS?

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Antoaneta Pinto December 14, 2016

Contrary to what you write the hike today didn't lead to rising gold price. Can you be wrong about all the rest?

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wil clarke December 14, 2016

Always read Mr. Edelson.. Fine observer and articulator. Especially appreciate his comments on gold.

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B Karpf December 14, 2016

As stated" in the months and years ahead you are going to see ",How can the market catapult to 28,000 and beyond at the same time there is a global depression, including US. Those comments need associated timelines to make sense

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Jim Fisher December 14, 2016

Why doesn't the new money "fedcoin" be a part of you and others? I already understand the problem with printing money to sustain our economy. Sweden and other countries are phasing out dollars. What are you scared of.

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Donald Wheir December 14, 2016

You obviously do not care very much for Mr. Cohn. I have no feelings one way or the other about him. However it would be nice to know what he has done so wrong and why you have these feelings toward him. Thank you, Don Wheir

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ron goddard December 14, 2016

wow you did it again larry! i take it all on board. and the result? rich get richer etc. bargains everywhere and great suffering. and media b.s. about how wasteful we (the public) have been and we deserve it. and its all our own fault. and the elites are rubbing their hands with glee as they live like kings and watch nations fight over...nothing!!. more money for the war machine. we will never know the truth until 60-70 years after when the next cycle comes around. and most of us will be long gone. lenin said that 95 % of the people in this world are idiots but they are useful. make that 99.999% cheers, and good luck and merry xmas etc.

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Tom December 14, 2016

I hate to see anyone from crooked Goldman Sachs entering into government service. Dow 45,000 in 3-4 years seems outrageous, but not impossible. Gold rising, the dollar rising, bonds falling and the country in some sort of depression. I cannot make all that add up.

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Philip Krueger December 14, 2016

How can I stay safe when you put me in a bunch of miners that are plunging and costing me a lot of money, and that I probably will get stopped out of with even more loses.

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Kurt Angst December 14, 2016

Hey Larry, is it a good time to get into miner stocks, and ETFs like NUGT?

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The Real Tony (Nicky Fuirlano) December 23, 2016

NUG.T is a 3X ETF and is meant for day trading not buying and holding. It severly erodes over time.

GEORGE December 14, 2016

WITH REGARDS TO COHN, KEEP YOUR FRIENDS CLOSE AND YOUR ENEMY CLOSER

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mmagee December 18, 2016

I can only hope that Trump shares your perspective and will see through future potential deception from Cohn (Con). Perhaps more damaging than giving Trump advice that is not America first is the probability that Cohn will leak important information to his financial friends before the general market participants have access to it. It all comes down to intentions and integrity.

Al McInally January 11, 2017

insightful

Erno Gulyas December 14, 2016

Since governments can and will do what they wish with the stroke of a pen, I believe it is wise to keep bullion in ones possession and not in a pool with others. Governments around the world over the generations, have using one excuse or another, stolen personal wealth from citizens.

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Steven Levin December 14, 2016

Dent says the exact opposite on gold. Do you understand his reasoning and, why then do you believe it is wrong?

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Dick December 14, 2016

Where is this money coming from to propell the DOW to 45000?

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Russ December 15, 2016

Larry has said repeatedly that the money will come from Europe as it comes apart as it did in the 1930's.

espy December 14, 2016

"Plunging" is rather dramatic at this point and any appointment to the NEC is dwarfed by the ongoing atrocity which is the Fed.

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Seamus December 15, 2016

How can the DJ be forecast to catipult to over 40k concurrent with a depression , mass unrest and spiralling interest rates - is this not contradictory or mutually incompatible ?

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Frank December 15, 2016

The Big Deal is and has always been voter turnout, the 55% that put Rump in the White House and the remaining 45% who somehow wouldn't get off their lazy asses to fill out a ballot. Long lines? Voter suppression? Inconvenient? Sorry, no excuses. Use early voting or vote absentee. If you really want to vote and are eligible, you can. If you don't give a crap, leave the country. You've given up your right to vote and also to complain. This is why the U.S. Government is a sick joke on its way down the sewer. Congress is packed with obstructionists and corporate lobbyists. The Fed is a consortium of private banks that care for nothing but their profits. Voters get the government they deserve because half of them are too lazy, under-educated, and stupid by choice to exercise their Constitutional rights.

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Raoul Schur December 15, 2016

I cannot get my head around this: If the stock market is going on such a meteoric rise in the years ahead, who will be buying gold? Please explain, Larry.

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Badford December 15, 2016

I really like and appreciate your articles Larry but can't you reward us occasionally by letting some of these secrets out of the bag! I would like to know the simple method you talk about to identify long term trends in precious metals? Give us a taste of this demographic and sentiment driven market and we might actually buy a membership if it works. Thanks, Badford.

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Hans geissler December 15, 2016

Bless you Larry

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roger stamper December 15, 2016

tks for post

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mark December 15, 2016

Dear Larry, I'm really scared about gold ,it is losing all the gains it made in 2016 and this is not good at all. There are high probabilities that it is still in a bear market,I don't see as it can do the move you are forecasting,I really hope you will be proven right ,of course,but all the odds are against precious metals,from higher interest rates to a strong dollar.

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Russ December 15, 2016

Remember that Larry often said that the first Leg will Lose most of its gains and to wait for the 2nd Leg. Well, we are in the losing phase of the 1st Leg. What is every one Complaining about and why is anyone surprised? Disregard Larry's advice and repent in leisure.

Mark W. December 15, 2016

Larry, We need an updated gold AI chart. We're dying here... Thanks, Mark

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Richard December 17, 2016

What many people doesn't seem to realize is the Fed does not set the rates, they only follow what the market has already set... Check it back as far as you want and see for yourself >>>

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mmagee December 18, 2016

Larry, can you provide us with some scenarios that Cohn in his position of chair of NEC could subvert the best interests of the American people? Subversive advice to Trump? Leaking important financial information to his Goldman buddies? What power does the chair of the NEC have that he might use to put his selfish interests above the best interests of the American people? Please educate us from your field of expertise than many of your readers do not have. Thank you.

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Jim January 5, 2017

Dear Larry.....I'll make this simple, is now a good time to add to my gold holdings? Most of my GLD and GTX were purchased some time ago and at a higher price than the current values. Thanks much, Jim

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Al McInally January 11, 2017

The most common sense explanation I've read. Thanks, Larry

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Al McInally January 11, 2017

Like GEORGE states above keep your friends close and enemies closer. I hope Trump thinks this. I think he does because of his family and what it portrays. Of course Trump can't afford to let banking collapse now. Of course banking and Wall Street are corrupt and should be broken up and limited but to do that now would force the debt collapse whereas Trump is trying to grow. The time to change Wall Street and banking is when growth is healthy and stable which it certainly isn't now and I must add good luck getting politicians to realize this. Being in bed with banking is a double edged sword but if Trump is gonna get growth I don't think he can afford to attack banking.

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Jennifer January 11, 2017

How low do you expect Gold price? >1000

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