We talk frequently about the way central banks and governments affect the economy. In the grander scheme of things, though, whatever the Fed does is more like throwing a hand grenade into a large building.
Inflation is theft of wealth from the economy’s future. The truth of the matter is that inflation really isn’t going anywhere. Damage has been wreaked on the health of the economy.
Other than saving with physical assets, precious metals, land, things of value, or perhaps a business that you understand and run yourself, you’re forced to be a speculator.
Gold is real money and the original measure of value for everything else. The U.S. dollar and all fiat currencies are substitutes for real money/gold. All governments inflate and destroy their own currencies.
Can a crash can still set up for much later this year? The answer is, "of course." Can we still get to the all-time high? And, the answer is also "of course."
If Jay’s speech is dovish, then gold, silver, and the miners could quickly look like Apollo rockets headed for a fiat priced moon! The dovish stance is silly, but it’s very good for gold.
Critics warn FedNow is a prelude to CBDC that threatens financial privacy and freedom. Gold and silver held outside the banking system remain the soundest alternative to fiat currency.
A weak US dollar has many implications, including strong upside potential in long-term bonds, currencies, American companies selling goods and services abroad, and commodities, especially gold.
Gold is set to eke a third weekly gain despite going into next week’s likely 25-basis point lift in interest rates. Markets expect the Federal Reserve to pause again on further hikes.
