Mobius: Bear market could get much worse

The Sounding Line – CNBC/Taps Coogan/6-21-2022

“I have confidence that (the Fed) is going to follow their rule book and you know what that is. If inflation is 8.5% to 9% then interest rates are going to go up to 8.5% to 9%… They’ve made this mess with the printing of money the way they did and now it’s going to be very difficult for them to get out of it and we are going to be going through a lot of crises in the following months…”

USAGOLD note: It would be difficult to quantify the systemic risks 8.5% to 9% interest rates would generate, but they would be substantial in our view.…… The latest from Mobius who recommends investors allocate 10% to gold – “emergency money” as he calls it.