Loading ...James Mc…
The Weimar move
Bill,
If there were any semblance of a free market gold and silver would be acting like there is no tomorrow. That’s because with what has happened over just the last 24 hours there IS no tomorrow for paper currencies. The biggest monetary experiment in the history of the world just got unleashed. Infinite money in 2020 is VASTLY different than the Weimar version, or any other historic hyperinflationary times. If anybody doubts my assessment the following headlines prove I’m right.
In Unprecedented Move, Fed Unveils Open-Ended QE Including Corporate Bonds
Unprecedented Intervention: The Fed Will Purchase $125 Billion In Securities Every Day
Kashkari Says Fed Has “Infinite” Amount Of Cash: “We Create It Electronically”
BofA Calls For “War-Time Measures”, Urges Near- Total Fed Takeover Of Capital Markets
The Fed Is Now Buying Investment Grade Bond ETFs Like LQD
The dislocation of the $1.5 quadrillion derivatives markets alone is troubling enough. If even 10% of that needs papered over you’re looking at $150 trillion. The cascading defaults, and financial cross contaminations have to be gigantic.
With Friday’s 13,334 gold EFP’s it brings the 18 day total to a whopping 317,863 EFP’s, well over half of the entire current open interest. That 952 TONS, at a notional value of $48.5 billion, in very short order. Now how many tons are in the GLD? I wouldn’t want to be invested in ANY alleged gold-baked vehicle such as GLD. They are desperate, and will invoke some obscure clause buried in the prospectus to screw investors. These EFP’s are imo real, and getting done.
What would the HUI be if gold was $10k and no offer? Gold and silver put in some late pops late Friday afternoon, calmed down, and then exploded this morning on this news:
Fed announces unlimited QE and sets up several new lending programs