All That Glitters Is Not Central Banking

The Fed given hawkish statements this past week continues to jawbone for permission to up interest rates. This is a Fed without courage or direction, a classic chase of getting permission rather than asking for forgiveness. In short, the absence of boldness in their blood should be obvious by now. All good leadership has an element of boldness. These bureaucrats have proved to be leaderless and devoid of boldness.

Meanwhile, their ongoing jawboning affects the precious metals, especially gold. And next week look for more of the same. Not only that but some serious data gets dumped on the market next week, data that could if more upbeat give the Fed the shot of courage it needs to pull off what would now not be so much of a surprise hike come September 21. Part of investor uncertainty of late centers on just such a possibility. The other one is the September 21 date could serve as the precursor for massaging the market for a definite rate boost in December.

What we know is this group is dying to raise rates at this point to take some of the heat off it incompetence. Such sentiment makes it even more likely they will miscalculate and make a grave mistake further damaging their credibility. One needs to realize that destroying the Fed in the view of some observers is part of the hidden agenda to create a situation more conducive for implementing a one world government. Out of chaos comes dependence. And along with it big brother.

Anyone who believes the ruling class will go down easy shouldn't have gold in his or her portfolio. This upcoming election smacks as a temporary divergence. With the current administration set to turn the Internet over to the UN and the more frequent calls for a cashless society, the garrote around your neck is getting pulled a little tighter each day. Like the word manipulation, the term convenience has many meanings and they're not all good.

Gold recently traded at $1327.88, not too far off from its bottom in what many see as a range between $1350 and $1325 an ounce in all the current uncertainty about central bank policies. The 100 moving average is $1308.