To “save the world’s economy” in the 2008 World Financial Crisis (WFC), the Federal Reserve led the world’s central banks in printing money, hiking its holdings of T-bills and other bonds – some quite specious – from $900 billion to $4.5 trillion, a five-fold increase.
As can be seen in the graph, the world’s central banks were sellers of gold up until the 2008 World Financial Crisis (WFC). After which, they became strong buyers, with the last six quarters seeing significant buying.
2019 was a solid year for precious metals, with gold up $231 (18.5%) and silver up $2.40 (16.4%) since this time last year. Still, not much attention has been paid to the metals on the financial networks.
The US Federal Reserve and the European Union’s central bank recently announced plans to inject massive liquidity into their respective money markets. However, the Fed denies that its buying is another quantitative easing program while the ECB admits that it is.
Not seen in the news, but the national debt rose $621 billion in the 4th quarter. That’s at an annualized rate of nearly $2.5 trillion.
In 2018 the Fed imposed four rate hikes, and stocks were virtually flat for the year. Actually, in the fall of 2018, stocks took a huge tumble.
Few Americans are aware that our federal government does not have a limit on how much money it can spend. It was not always that way. Prior to 1939, Congress had to approve every purchase made by the Treasury. It was then that Congress imposed a debt ceiling, which was watched closely by all. Fiscal
There are lots of reasons for owning gold and silver. The rising federal debt alone and a government that has abandoned fiscal responsibility could cause interest on the national debt to top $1 trillion in ten years.
Some of the world’s most famous and successful investors have taken positions in gold. It pays to note what successful people do with their money. “Some regard [gold] as a metal, we regard it as a currency, and it remains our largest currency allocation… – Stanley Druckenmiller. Druckenmiller was chairman and president of Duquesne Capital,
Incredibly, a bank in Denmark is offering home buyers 10-year mortgages at an interest rate of -0.5%. Borrowers who opt for these mortgages will pay back less than the amount borrowed. This has come about because of the massive money creation by the world’s central banks.