The Fed is printing money again – this time disguised as “repo operations” instead of “QE.” The price of gold and silver rallied over the summer anticipating an easier monetary policy. The economic problems and financial system excesses are two to three times larger than in 2008. This will necessitate a money printing/QE/balance sheet expansion operation that dwarfs the $4.5 trillion printed the first time around. Plus most of the money printed from 2009 to late 2014 is still in the banking system.
The scale of the inevitable money printing policy will not stimulate economic activity but it will act as rocket fuel for the precious metals market – gold, silver and mining stocks. Ten years of Central Bank money printing has pushed debt issuance, malinvestment, moral hazard and fraud to levels that well-exceed the levels when Lehman collapsed.
Craig “Turd Ferguson” Hemke invited me back onto his “Thursday Conversation” podcast to discuss the the Fed cranking back up its money printing machine and the implications for gold, silver and mining stocks. Click on the link above or the graphic below to listen:
In the latest issue of the Mining Stock Journal, I review several junior mining stocks plus I recommend a larger cap silver/gold/lead/zinc producer that has been sold off irrationally and which will report great earnings in Q3 and Q4 vs the same quarters in 2018.
You can learn more about Investment Research Dynamics newsletters by following these links (note: a miniumum subscription period beyond the 1st month is not required): Short Seller’s Journal subscription information – Mining Stock Journal subscription information
What if Fed used Repo crisis to start QE again . They had to find excuse , otherwise they would have to do a lot explanations. It’s getting harder for Masters and gold can only go up and up. We need only right trigger.
“Volumes for S&P 500 stocks are near 10-year lows”.
The investing public has sold up. Left are traders and government market manipulators. This is what you call a Potemkin Village. It shows how meaningless price signals have become in our Neo-Bolshevik world. Take it from Lenin: “The best way to destroy the capitalist system is to debauch the currency.”
Desperate struggle for cash in today’s repo operation whilst McKinsey spreads optimism: “Half The World’s Banks Won’t Survive The Next Crisis”. The others should be all right then. I wonder what kind of business model they will have in the Mad Max world to come.
Hard to say that McKinsey uncovered anything news-worthy there – it’s pretty obvious when the house of cards blows over that it will be
blood-bath for the banks. The big banks in this country wouldn’t survived 2008 if the Taxpayers and the Fed hadn’t bailed them out.