Jul 20, 2020

The Federal Reserve Is Creating Dollars To Buy Bonds

The only way the Federal Reserve can suppress interest rates is by creating dollars to buy bonds. The more dollars it creates the more value the dollar loses, and the faster consumer prices rise. That puts upward pressure on rates so the Federal Reserve must create even more dollars to keep rates low.

Buy Your Gold Before Too Many Figure It Out

It looks like the Fed's 2 percent inflation target, which started out as a ceiling, is about to officially become a floor. The irony is that the actual inflation rate will be so far above 2 percent that we may never step foot on that floor again. Buy your gold before too many figure this out.

The Next Crisis Will Be A Dollar Crisis

The U.S. dollar's decline is welcomed as good news. Many were concerned that a strengthening dollar risked domestic deflation, hurt U.S. exports, lowered corporate earnings, and threatened emerging markets. Cheers will soon turn to tears as a dollar crash becomes the next crisis.

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