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Welcome to illuminati silver, we tell you the truth about silver.
Today is Wednesday 16th December 2015 and we are briefly covering the FEDs announcement
that it has raised interest rates by 0.25% After two thousand, five hundred and fifty
six days of record low interest rates, the US Federal Reserve has at last raised interest
rates by 0.25% "Given the economic outlook, and recognizing
the time it takes for policy actions to affect future economic conditions, the committee
decided to raise the target range for the federal funds rate from ¼ to ½ percent,"
the FOMC's post-meeting statement said. "The stance of monetary policy remains accommodative
after this increase, thereby supporting further improvements in labor market conditions and
a return to 2 percent inflation." Many market commentators have predicted this
rise. In fact, earlier today, Michael Gapen, Barclays’ chief US economist, said that
the Federal Reserve’s goal is to raise interest rates and avoid causing any market turmoil.
Speaking on Bloomberg TV, Gapen said the Fed has a “very real and very tangible” fear
of spooking investors. Jack Welch, the former boss of General Electric,
stated on CNBC today, that rates should have been raised three months ago - before the
rout in the commodity market got underway: He added: “It would have been better to
go last time actually. Conditions were better. The economy is not any stronger. The commodities
have gone further down.” Until now Policymakers have been at pains
to stress that their actions were dependent on the state of the economy. The most recent
bulletins from the labour market which showed 211,000 jobs created in November and inflation
(a core measure hit 2 per cent last month) gave officials the extra confidence they needed
in order to move rates higher today. European stock markets having already closed
before the announcement were made and it shall be very interesting to see their reaction
when they re-open tomorrow. The Dow Jones Industrial Average Index jumped
160 points in early trade, fell back and rose slightly on the announcement and is currently
standing at 17,625 up 101 points on the day so far.
Both gold and silver rose prior to the announcement up 1% and 2.5% respectively and at the time
of this video gold stands at $1070 and silver at $14.19
So what do we make of this? Well, the rate rise was expected. Despite what Peter Schiff
and others claimed that there was no way the FED could raise rates – they have been proven
wrong. Yes to some degree they were backed into a corner. The dollar is slightly up on
the day, though traditionally when rate announcements have previously been made, the reaction has
ironically been to fall slightly. We shall no doubt see a little turmoil for a couple
of days, but we hold fast to our view that the short term trend for gold and silver is
still down from these levels. We hope you have found this video helpful
and informative, and would appreciate it if you would give it a thumb up, comment and
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Disclaimer:
Illuminati Silver owners come from a background of Banking, International Wealth Management
and Economics. Having now retired from these worlds we are not qualified to give investment
advice. Therefore, this and other productions must not be deemed to be giving such advice
and merely represent the personal views of its owners.