Gold vs. An Openly Failing/Changing World

4.18.22 - Gold vs. a Failing World

Gold last traded at $1,977 an ounce. Silver at $25.85 an ounce.

NEWS SUMMARY: Precious metal prices rose to 4-week highs Monday on safe-haven buying despite a firmer dollar. U.S. stocks traded flat as a big week of earnings kicked off, while traders kept an eye on rising interest rates.

GoldSwitzerland--"As central bankers play checkers on a global debt chessboard, we see below how policy hypocrisy, worsening monetary options, failed diplomacy, tanking bonds, rising rates, debt addiction, mismanaged sanctions, de-dollarization and a shift toward a disorderly re-set all spell immense pain for Main Street as well as Wall Street.

In short, the world is in flux, the mess is everywhere and gold is already flexing.

Fed Vice Chair Lael Brainard, a former money-printing dove who helped pour trillions of liquidity into the biggest risk asset bubble and wealth transfer in US history, is suddenly realizing that perhaps she and the FOMC may have gone too far as their open stock market inflation now morphs into just plain everywhere-inflation (and an 8+% CPI).

She is now puffing a Hawkish chest and citing the good ol' days of Paul Volcker rate-hiking as the kind of tough restraint needed in 2022. But such a pivot is the equivalent of the Titanic's captain ordering more lifeboats after the ship has already sunk....

And as for money printing, more is on the way because central banks in general, and the Fed in particular, have no choice but to eventually create more diluted dollars.

Long-term gold investors have always known this.

And the market now knows what double-speakers like Yellen, Powell, Brainard and others won't confess, namely: That as soon as the economy and markets begin to tank in this raising yield/rate environment, the Fed (and other central banks) will be forced to print (i.e., debase) more inflationary money and impose Yield Curve Controls (YCC) to stem the financial bleeding that always follows a rate hike.

In short, and as forewarned long ago, get ready for far more, rather than less, centralized controls over your money, economy, market and lives. Such inevitable bond market disasters, yield spikes and subsequent money printing and YCC is why gold is rising and gold miners like Newmont are seeing all-time highs despite a rising USD."