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<p>[QUOTE=&quot;fatima, post: 1357804, member: 22143&quot;]There is a lot of exuberance about Bernanke holding rates at 0%, but I don&#039;t think it&#039;s going to make much difference.&nbsp;&nbsp; The Fed&#039;s attempts at economic central planning for years have failed and they are now like the little boy standing there with their finger in the dike.&nbsp; There is absolutely no way they can raise rates without creating utter destruction to the finance system.&nbsp;&nbsp; And since they can&#039;t go any lower than 0% the only tool they have left is to create an account for themselves, load it with currency and then use these assets to buy securities directly from the finance industry.&nbsp;&nbsp; i.e. QE.&nbsp;&nbsp; </p><p><br /></p><p>The problem for them, if you understand this, is that if rates rise, all that paper which they have bought from the banks, loses value, and if that value falls below their liabilities (which includes the money they created to start QE) then the Fed becomes technically insolvent.&nbsp;&nbsp; This doesn&#039;t mean anything for them except that it forces the politicians to get involved.&nbsp;&nbsp; This is why rates won&#039;t rise and why this is non-news.&nbsp;&nbsp; It&#039;s a sad state of affairs, but it&#039;s what happens with fiat money systems.&nbsp;&nbsp; </p><p><br /></p><p>Silver is a speculator&#039;s metal.&nbsp; It might cause a spike in silver for a while.&nbsp;&nbsp; Gold is an investor&#039;s metal.&nbsp; It will continue to go up because rates are being held at 0% so stay the course on whatever investment plan that you have for it.&nbsp;&nbsp; In other words, what they say now is irrelevant because the boulder has already been pushed over the cliff.&nbsp;&nbsp; </p><p><br /></p><p>(all bets are off however if they start a war with Iran)[/QUOTE]</p><p><br /></p>

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