If central banks cut rates, buy gold.
I get the feeling the G7’s central banks are preparing for another coordinated effort to once again cut interest rates at the same time.
The language in their statement included an overhaul of more conservative lending on new loans, while very closely monitoring the existing book of loans and credit.
They are likely preparing banks for more conservative lending so they can reduce rates again to support global house prices, as the meant-to-rent folk foreclose lose their homes to the people who sold the homes to them.
In essence, the global rate cuts will ostensibly appear to be healing the wounds of the dollar when in reality they’ll be lacerating themselves.
It will be more global inflation, which bodes well for the commodity bull, particularly gold.
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