Central bank bluster notwithstanding, interest rates will continue to trend downward. It can be no other way. The servicing of sovereign zombie debts insists that interest rates don’t rise. And then there are the zombie debts and zombie jobs of the zombie corporations that facilitate employees taking on their own zombie loans. The aggregate of all that is what keeps the economy spinning. It cannot be allowed to stop. Interest rates will continue to be manipulated downwards.
One day it will stop, but that day will not be brought about by volitionally raising interest rates.
As long as interest rates keep falling, then bonds will keep rising. As long as bonds keep rising then governments will still be able to borrow money. Rising bond prices means that there will be no rush of money into commodities. As long as there is no rush of money into commodities, then the dollar price of Gold and silver will not be going to da moon anytime soon.
Widespread commodity speculation is never a bet that commodities are going up; it is always a bet that fiat is going down.
Not many are taking that bet.
But even if they did, the US$ would still have massive demand due to the fact that all the aforementioned debt is denominated in it.
What a mess.
Interest rates won’t rise and the US$ won’t collapse. The veneer of normalcy will continue until one unknowable moment on one unknowable day when the whole damned system just topples over.
Waiter, more wine please.