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China's central bank unexpectedly held interest rates steady, bucking predictions of a cut following the Fed's move. The People's Bank of China kept its one-year and five-year Loan Prime Rates at 3.35% and 3.85%, despite August's economic slowdown.
Japan's central bank also maintained rates at 0.25%, though future hikes seem likely as inflation hit 3% in August, well above the 2% target.
Adding to the complexity, commodity markets are showing signs of potential cost-push inflation. Gold prices are on the rise, often viewed as a harbinger of monetary debasement.
These developments highlight the tightrope central banks must walk: managing debt, 'fighting inflation' (inflation is their purpose so it's bs) and supporting (keynesian pseudo) growth amid looming commodity pressures.
The central bankers know exactly where they've planted the "mines". Of course they will always tread carefully.
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Just curious, is Japan buying a lot of gold to import? Seems like a lot of asian countries are importing gold.
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Japan doesn't seem to be a part of the gold story so far
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Thats what I though. Something strange may be happening. I also know the Japanese people value gold.
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Pressure will be rising to put hard assets on the cb's balance sheet as soon as the Fed moves
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