A second coming inflationary wave is waiting to be unleashed as the Fed cuts rates…

2nd Inflationary Wave
September 9 (King World News) – Graddhy out of Sweden:  Very big picture silver and sugar move similarly. And with silver’s huge breakout, sugar should be close behind. Sugar now has perfect 50% retrace.

BIG UPSIDE:
Silver & Sugar Both Have Explosive Multi-Decade Cup & Handle Formations

Another chart showing that the 2nd inflationary wave should start soon. Get prepared.

So, As The Fed Cuts Rates…
Peter Boockvar:  As Federal Reserve rate cuts will certainly ease the pressure off anything/anyone reliant on debt, let’s do some very easy math on the flip side of that. That being the beneficiaries of interest income, particularly the lenders to the US government. In the 10 years leading into the first Fed rate increase in March 2022, the average 1 yr T-bill rate was .74%. On $1,000,000 of savings one was receiving $7,400 in annual income pre tax on average. A rate around 5% is of course $50,000 of income. That is quite a difference with the balance paying for many things, including vacations and trips to the restaurants.

So, as the Fed cuts rates, those relying on that savings for spending, particularly baby boomers for cruises, and other things, that income will be reduced. In fact, that $50,000 annual income that becomes possibly around $40,000 by year end and to maybe $30,000 by next summer if the fed funds futures is accurate in today’s pricing, is the difference in taking that cruise, vacation or buying that $65 filet instead of the $40 chicken. 

Bottom line, life is about trade offs and this is one of them as rate hikes and cuts have differing impacts on the economy. And it’s not just money in money market funds but also a lot now in CDs that will be affected.

Dollars in Money Market Funds, $6.3 Trillion, much of which previously sat in savings/checking accounts

Prins Predicts $4,000 Gold Price & Much More
***To listen to Nomi Prins’s predictions for the price of gold, silver, uranium, interest rates and much more CLICK HERE OR ON THE IMAGE BELOW.

Just Released!
***To listen to Alasdair Macleod’s just released audio interview discussing the Russian gold buying along with other central banks and much more CLICK HERE OR ON THE IMAGE BELOW.

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