Fed Heads Lose Their Head

So far I will clearly agree with him. “Crypto assets are highly volatile and therefore not useful as a store of value,” he said. It is a speculative asset that is essentially a substitute for gold rather than for the dollar”.

So yet another clueless Fed head!

The obvious question to ask Powell is:

Why the hell don’t you sell your 8,000 tonnes (allegedly) of gold and buy Bitcoin instead??
That is the obvious conclusion if Crypto assets are a substitute for gold. Also, imagine the costs you would save Mr. Chairman as 8,000 tonnes of gold is $4.4 trillion and would fit on a small memory stick that you could keep in your pocket.

GREENSPAN WITHOUT THE FED GAG

Finally, let’s go back to Greenspan after he got rid of the Fed gag and returned to his sound money views. In a 2014 interview he stated:

“Gold is a currency. It is still, by all evidence, a premier currency, where no fiat currency, including the dollar, can match it.”

“Yet gold has special properties that no other currency, with the possible exception of silver, can claim. For more than two millennia, gold has had virtually unquestioned acceptance as payment. It has never required the credit guarantee of a third party. No questions are raised when gold or direct claims to gold are offered in payment of an obligation”.

So there we have it. The now 95-year-old Greenspan, when allowed to speak freely, knows that in a world filled with quadrillions of debt, no fiat money can match gold.

COMMODITY INFLATION IS RAGING

As KWN has recently illustrated, commodity inflation is raging. Here is a chart of the Wisdom Tree Commodity Index which is up 50% since 2020.

GOLD – BULL MARKET RESUMES

Inflation is likely to run well ahead of interest rates, like in the 1970s. This means that negative real interest rates will continue which is very beneficial for gold and silver.

As the chart below shows, gold has now finished the correction since August 2020 and the next (temporary) stop should be around $3,000

However, investors should not worry about the gold price but instead hold gold as the ultimate protection against the biggest financial bubble in history.

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