Metals Up, DOW Up, Treasury to Begin Printing More Money!
By: John Fisher
Bernanke and the Federal Open Market Committee (FOMC) announced yesterday that they would keep interest rates low until “at least late 2014” and that the committee “expects to maintain a highly accommodative stance for monetary policy.”
Accommodative means they will accommodate any blip in the economy, or that of our trading partners. These accommodations come in the form of liquidity injections, debt purchases, currency growth and QE initiatives – all of which are inflationary. All this while Bernanke “…expect[s] inflation to be subdued”. The FOMC specified a two percent (2%) goal for long term inflation. Measured by what I ask? Some index that is absolutely meaningless to what the average American encounters?
I was on the phone with one of the U.S. Mint distributors when gold and silver took off like a rocket when the FOMC made its announcement. The metals market interpreted the Fed’s announcement as more and more inflation. Meanwhile, the Dow also rose 83 points to 12,758 on the prospects of more easy money to come if there is a hint of trouble.
Watch this video on the Fed’s real role in the printing of money:
VIDEO: No, the Fed Does NOT “Print Money”
All Things Considered – John’s Commentary
I have many clients and prospective clients who are feeling really stuck right now. The emotion that was driving the metals markets is missing. The election, the Euro, and simply surviving have people preoccupied.
And finally, some investors are just getting tired. They get worn down with the see-sawing of prices and emotional swings in the market. They feel like they have been waiting for years to reach their price goal.
I am willing to be patient. I don’t care how long it takes. The government will inflate the monetary base. The rate of expansion will continue to increase. The day will come when gold and silver will be fully valued as money. And, their prices will go exponential as fiat currency fails. Fiat currency always fails over time as history has proven without exception.
Have some gold. Have more silver. There is no better investment value at present than silver that you hold personally.
Quote of the day: “Since its formation in 1913 the Federal Reserve has failed to maintain price stability, failed as a lender of last resort, failed to maintain full employment, failed as a bank regulator and failed to preserve the integrity of its balance sheet.” – James Rickards, Author of “Currency Wars”
