Now, there was also a theory which is called the Dollar Milkshake Theory. This is something that we realised has a gained in momentum after the World Trade Centre 9/11 attacks, and after 2008 global financial crisis, central banks in the world around the world realised that you could simply print your way out of trouble and of course there would be some kind of inflation, but you could stimulate the financial markets. So that the central banks are printing money in many countries is a given. You see now, a substantial portion of the US dollars floating in the global financial markets were printed after the covid based lockdowns were introduced. Will gold and silver witness some amount of profit taking? Will actually start to see even a decline? These are primed worries in the minds of my viewers and I'm basically trying to address them in this video as best as I can.
But what if the US was to taper, which means roll back the fiscal stimulus, scale back the bond buying, and raise interest rates? For example, two days ago, China introduced a ¥200 billion into its economy. Of course the degree can vary and I have given you from the best case scenario to the worst case scenario. This is Vijay Bhambwani here and in this video, I want to talk about a very critical aspect about the markets, especially bullion and some of my friends, some of my viewers might be worried about what's happening if the US was to taper.īy taper, it is meant raising of interest rates, either slowing down or stopping, maybe even reversing the fiscal stimulus, which is buying bonds printing dollars, injecting money into the economy, and the financial markets.įREE TRANSCRIPT: See How Richa Picks Potentially Crorepati-Making Stocks.
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