Scott Pelley, “60 Minutes:” “Where does it [money] come from?” Do you just print it?”
Jay Powell: “We print it digitally. So as a central bank, we have the ability to create money digitally. And we do that by buying Treasury Bills or bonds for other government guaranteed securities. And that actually increases the money supply…No, there’s really no limit to what we can do with these lending programs that we have. So there’s a lot more we can do to support the economy, and we’re committed to doing everything we can as long as we need to.”
I almost fell off my chair after I reading Powell’s comments on “60 Minutes” public relations stunt on behalf of the Fed. There’s two important points that stand out like like silent screams in Powell’s words: 1) 99% of the currency – not money – printed by the Fed goes directly to the banks or funds Government debt; a small trickle might get to Main Street to “support the economy;” 2) the Fed is willing to print an infinite amount of currency to keep the financial system propped up. In other words, the Fed is indeed printing helicopter money but it’s dropping it on the banks and not the economy at large.
This is why gold soared during and after Powell’s interview and it’s why the gold/silver price management team (Fed, ECB, BoE, BIS) has been working overtime in an effort to prevent gold and silver from going parabolic. That effort is doomed to fail.
Chris Marcus from Arcadia Economics and I discuss the Fed’s money printing and the likelihood that it will lead to an eventual reset of the global monetary system:
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After pending home sales crashed 34%, Larry Yun said it was because
of the virus. This disingenuous arsehole forgot to mention that when
you don’t have a job or a means to pay the mortgage you don’t buy a
house. Getting so sick of the bald face lines from these government
hacks.
There might be an initial bounce in home sale activity from May to June, but it will be brief. The housing market
is in big trouble with 40 million newly unemployed per the cumulative jobless claims report.
By the time the dust settles, the FED will own everything in america, bought with funny money, created from thin air. The debt acrued will one day have to be paid for by future generations of american’s. Future american taxpayers will have all the pain, but no gain.