QUESTION: Mr. Armstrong;
I am a young entrepreneur recently introduced to your work through my father. You have significantly influenced our views on gold and inflation.
My question is related to interest rates. Do you still believe the table is set for much higher rates in 2014 – 2015?
Thank you for your insights, Ben.
ANSWER: Rates will still move higher even if the government tries to go negative. People will not buy their debt and as confidence declines, the central banks will still lose control of short-term rates. They have always know they could “influence” long-term rates, but not control them. This is why the tried QE1-3 buying long-term tried to bring those rates down indirectly.
The timing may push-off into 2016. This would be part of a cycle inversion, which must take place going into the end of a 51.6 year wave. This will be where capital flees government paper and assets moving to private sector as confidence collapses.
