Fear Trade for Gold Is Still AliveThe world has been experiencing the largest liquidity boom, as the central banks' seven-month easing binge continues. Over this time, ISI counted 127 different stimulative policies, such as printing money, lowering interest rates and other easing measures, taken by governments around the world.
- Real interest rates would have to increase to 2% greater than the CPI in the U.S. and Europe.
- GDP per capita in China and India would need to fall, negatively affecting the Love Trade.
- Substantial fiscal cuts would need to be made in entitlement programs in the U.S. and Europe.