The Role Of A Central Bank

We don't want a Central Bank that helps the Federal Government go deeper into debt. We want a central bank that forces Congress to cut spending or suffer the adverse consequences of rising interest rates and recession if it fails to do so.

An easy way to tell how bad a job Powell is doing as Fed Chair is that every member of Congress is praises him and thanking him for his help. We need a Fed Chair with the courage to do what's right for the country even if it's unpopular with Congress and the public at the time.

Bitcoin, Gold and Inflation

While Goldman Sachs is correct to warn its clients to avoid Bitcoin, its assessment of the U.S. economy, the U.S. Dollar and inflation is wrong. But once they finally figure out what should already be obvious, they will advise their clients to buy gold, just at much higher prices.

U.S. Dollar: The Reason Why Goldman Sachs Is Bullish

Maybe the real reason Goldman Sachs is so bullish on the dollar is that as a primary dealer of U.S. Treasuries, they have a lot of dollars to sell. If Goldman's clients realized the dollar's fate, they wouldn't buy any Treasuries. Whether default or inflation, loss is inevitable.

Inflation Is Bullish For Gold

Investors are selling gold and gold mining stocks because a rising Dow Jones means risk is on, so safe havens are reflexively sold. But the Dow Jones Industrials Average is only up because the Federal Reserve is creating inflation to prop it up. This is ultimately far more bullish for gold than it is for the Dow.

The Rise Of Gold

The relentless rise in the price of gold will call into question the viability of the U.S. dollar and its ability to continue to as the world's reserve currency. Given the lack of yield, if the dollar keeps losing value relative to gold, it will lose its reserve status to gold.

Does Powell Watch The Price Of Gold?

Someone should also ask Powell if he watches the price of gold, and if there is a price that would be high enough to concern him that Fed monetary policy is too loose, and that a dollar crisis might result from a failure to raise rates sharply and sell down the balance sheet?