Interest rate trouble ahead

[BusinessTech]

Interest rate trouble ahead

As more central banks stick to a hiking path for interest rates, chances are greater that the SARB follows suit.

 

[Vox Populi Vox Dei]

Yes. SARB isn't really that independent - it will follow what the big economies do. It needs to maintain the interest rate differential between the US and SA interest rates for investors to be tempted into buying our government bonds etc.

 

[bromster]

Doubt the US will be able to increase by more than 1% without breaking the banks.

This should all be over by end of year. Vasbyt.

 

[Pak Fa Fui]

Canada, Australia, Europe and UK increased, The US did not but economists predict they will in coming months
If we do it will show where the bulk of our economy weighs in, either with the UK or US
We are safe until the US makes their move

 

[bromster]

European inflation is completely off the rails at 10%+.

America is approaching 2% and will likely overshoot into deflation.

I don't see the logic in further rate hikes in the US, but they'll likely do it anyway.

 

[Pak Fa Fui]

Quarter pounder coming up for the US

 

[Pegging]

Let's wait for the expert @rvZA before you make any financial decisions.

 

[newby_investor]

Yes. SARB isn't really that independent - it will follow what the big economies do. It needs to maintain the interest rate differential between the US and SA interest rates for investors to be tempted into buying our government bonds etc.

"Independent" generally means that it's not controlled by any other branch of government, though. Not that it operates in a vacuum.

I'm not an economist (and I'm skeptical that economists really know what they're doing a lot of the time) but I'm not sure that just ratcheting up the interest rate is going to help anything.

 

[RedViking]

Let's wait for the expert @rvZA before you make any financial decisions.

 

[rvZA]

Let's wait for the expert @rvZA before you make any financial decisions.

There is absolutely nothing anyone can do. We are all at the mercy of the current regimes. Everyone will lose everything they own. It cannot be stopped. The only thing we can do is hope regime change happens across the globe. We have the most dangerous oppressive governments in place in the world's history.

But, stack up on gold and silver, as before, this will likely become the only currency you will be able to trade in.

 

[6spdmanual]

There is absolutely nothing anyone can do. We are all at the mercy of the current regimes. Everyone will lose everything they own. It cannot be stopped. The only thing we can do is hope regime change happens across the globe. We have the most dangerous oppressive governments in place in the world's history.

But, stack up on gold and silver, as before, this will likely become the only currency you will be able to trade in.

Quality financial advice as always.

 

[Vorastra]

There is absolutely nothing anyone can do. We are all at the mercy of the current regimes. Everyone will lose everything they own. It cannot be stopped. The only thing we can do is hope regime change happens across the globe. We have the most dangerous oppressive governments in place in the world's history.

But, stack up on gold and silver, as before, this will likely become the only currency you will be able to trade in.

- rvZA_GPT

 

[Pak Fa Fui]

There is absolutely nothing anyone can do. We are all at the mercy of the current regimes. Everyone will lose everything they own. It cannot be stopped. The only thing we can do is hope regime change happens across the globe. We have the most dangerous oppressive governments in place in the world's history.

But, stack up on gold and silver, as before, this will likely become the only currency you will be able to trade in.

Gold and silver are too rich for me, will gun powder, pigeons, rice and silk work as the next best effort

 

[Messugga]

There is absolutely nothing anyone can do. We are all at the mercy of the current regimes. Everyone will lose everything they own. It cannot be stopped. The only thing we can do is hope regime change happens across the globe. We have the most dangerous oppressive governments in place in the world's history.

But, stack up on gold and silver, as before, this will likely become the only currency you will be able to trade in.

Ah, the hugely passive governments of Mao, Stalin, Khan and Hitler.

 

[Pegging]

There is absolutely nothing anyone can do. We are all at the mercy of the current regimes. Everyone will lose everything they own. It cannot be stopped. The only thing we can do is hope regime change happens across the globe. We have the most dangerous oppressive governments in place in the world's history.

But, stack up on gold and silver, as before, this will likely become the only currency you will be able to trade in.

Thanks man. I am going to tell Magnus Heystek to liquidate my portfolio immediately.

 

[rvZA]

Ah, the hugely passive governments of Ramaphosa, Biden, Macron, Merkel, Trudeau, Arden, Mao, Stalin, Khan and Hitler.

Fixed the list to show a more accurate updated list for modern times.

 

[newby_investor]

Fixed the list to show a more accurate updated list for modern times.

If you're comparing Trudeau and Arden to Stalin and Hitler then ... either you're a troll or you are seriously misinformed....

Much as I hate to say it, I am with @Pak Fa Fui on this one. Gold and silver have very little real value other than because we all think other people want them. Food, clothes, building materials, gun powder, this is what you'd really need in a global economic collapse.

 

[bromster]

There is absolutely nothing anyone can do. We are all at the mercy of the current regimes. Everyone will lose everything they own. It cannot be stopped. The only thing we can do is hope regime change happens across the globe. We have the most dangerous oppressive governments in place in the world's history.

But, stack up on gold and silver, as before, this will likely become the only currency you will be able to trade in.

This is sound advice, but you don't need to go all in. Having hard assets as a portion of your investment portfolio is always smart to diversify risk.

Gold and silver were always touted as a hedge against total financial collapse.

In the defence of rvZA, I've never seen financial conditions closer to total collapse as they are today. Gold is close to an all time high for a reason. Central banks are accumulating gold on their balance sheets at the fastest rate in recent history for a reason.

That being said, if the US enters deflation and a recession, big companies will be selling gold to raise capital, so the gold price may sell off with the stock market initially. If this happens, i may accumulate some. $1300 would be a gift imo.

I've seen very smart people calling for gold to $10k in the next 5-10 years, and I can't see any points other than market manipulation to counter the argument.