Janet Yellen backs down again as she becomes dovish on rate increases/ the message from China must have been quite clear to her!/We had a 3.27 tonnes of gold withdrawal from GLD and yet a rise of 1.475 million oz of silver inventory build with no increase in silver price at the SLV/Japanese retail sales plummet and as such Abenomics a complete failure/the USA/Yen falters into the 112 barrier (yen rises)/Rousseff close to impeachment hearings in Brazil/ Russia adds 11 tonnes of gold yet Turkey sell 37 tonnes: something must be seriously wrong inside Turkey’s finances
by Harvey Organ
Harvey Organ’s Blog
[…] Let us have a look at the data for today.
On Thursday I told you that after China devalued their yuan on 4 consecutive day, the POBC was sending a strong message to the USA not to engage in any interest rate rise. Although three of the Fed governors were pounding the table that the USA needed to raise rates, it was obvious that if China devalued their yuan say by 20% to 8:1 (8 yuan/USA) to stay competitive, then everything would hit the wall: the Euro would collapse, the dollar skyrocket, then dollar scarcity, commodities collapse in price and then emerging market collapses together with their sovereign bonds. Today, Yellen got the message as she again goes extremely dovish. The USA can never raise rates again.