In the aftermath of the 2008 financial crisis, then Fed chair Ben Bernanke promised the markets that unwinding quantitative easing (QE) and normalizing interest rates would be possible. And that’s at near zero interest rates! If the Fed allowed interest rates to rise in any material way, the U.S. government would either default or — more likely — enter an endless cycle of money printing. Somehow, the market has been conditioned to believe that higher inflation numbers are bad for gold because it means interest rates will rise. So why does the Fed lie and why do market players believe them?

Source: thestar December 28, 2021 20:00 UTC