Stop the Presses! Bank Discovers Fed Can’t Print Gold!

Bloomberg:  “Gold to Reach $3,000—50% Above Its Record, Bank of America Says”

You’ve probably seen it in black and white movies.  Movies set in the old days when everyone read newspapers. 

Upon discovering the most unexpected and shocking news, uncovering a major corruption scandal, a plot, or crime, the intrepid reporter bursts into the newspaper building shouting, “Stop the presses!”

We have such a moment now!

The nation’s second largest bank has discovered that the Fed can’t just print gold like it can dollars!  

Stop the presses!

Bank of America has issued a new report raising its gold price target by 50 percent, from $2,000 to $3,000 an ounce.

The report is titled, “The Fed can’t print gold.”  

Here’s the payoff line: “As central banks and governments double their balance sheets and fiscal deficits respectively, we have also decided to up our 18 month gold target from $2,000 to $3,000 an ounce.”

“With the Fed committing to do whatever it takes to prevent widespread bankruptcies across the US, Congress injecting a $2tn fiscal stimulus plan, and economic growth on standstill until there is a cure or a vaccine, inflation could rise even if GDP does not, says
BofA.  “This backdrop should prove very positive for gold, in our view….”

“Another important point to remember,” according to the report, “is that, just as central banks are socializing risk in financial markets, governments are increasing their spending like never before during peacetime. Fiscal spending plans across developed economies are nothing short of breathtaking whether we look at them in dollar terms or as a percentage of each nation’s GDP.”

We’re glad to see others taking note of the unprecedented money printing and spending, but don’t mind noting that others (ourselves included, by the way) saw this period coming.  More than six months ago gold expert Ron Paul made an uncommon prediction.  Dr. Paul said that he expected gold prices to reach $3,000 by the end of this year, 2020, a year earlier than the BofA target.

In any case, we wonder what will happen to gold prices as more people wake up and a critical mass of the public starts to notice this new, hyper-overdrive, rocket-booster fueled, proton-pill juiced, steroidal-speed freak phase of Washington’s spending and Fed money printing.  

That will be a real stop the presses moment!