Time to Get Up-To-Date on Gold and Silver!
Okay, we all know America’s economy isn’t what it was, thanks to the shutdowns, trillions of dollars in “stimmies,” and Bidenflation. But now it’s official: We are definitely in a recession.
Well, check that. We are definitely in a recession. But it’s not really official until a board of bureaucrats says it’s official. And they haven’t said yet.
We all pretty much know a recession when we see one. It’s when the economy isn’t growing, it’s contracting. Companies cut jobs. People cut their spending for fear of the future. They stop throwing money at silly things like NFTs (whatever they were) and amazing new crypto-currencies like $Cat and SpankChain. And banks call some loans and make others hard to get.
We think we see a lot of these signs. And now we learn that according to the official GDP numbers, the economy hasn’t been growing. In fact, for the last two quarters it has been contracting.
We knew that before the numbers were reported. How did we know? We knew because the White House was spinning furiously in advance, denying that two consecutive quarters was a long-standing definition of a recession. The White House had inside information that they were using, not for the good of the country, but to try to soften the public relations blow, and limit the eventual electoral damage of a recession developing on their watch.
They were trading on material inside information. Not for stock market gain, but for political gain.
Face it, the governing classes are stealing everything that isn’t nailed down. Federal Reserve Board officials are implicated in trading on inside information. The whole scandal appears to have disappeared. The husband of the Speaker of the House just liquidated a huge position, selling $4 million worth of Nvidia stock at a major loss because the stench of cronyism and official inside dealing had become too much for even the lapdog press in Washington.
Martha Stewart went to jail for less.
Anyway, gold went up on the bad news Thursday morning (7/28) that the economy is in a recession. Why? Because it means that the Fed is going to find itself printing more money sooner rather than later. That is bad for the dollar, of course. But it is good for people who invest in gold.
The day before, we watched as Fed chairman Jerome Powell announced a new Fed funds interest rate increase. We watched gold go up then, too, because Powell is so transparent. Faced with an opportunity to do some serious about inflation, he punted.
Think about it. The official US inflation rate is over 9 percent. Powell raised the Fed policy rate to a target of 2.25 to 2.50 percent. The Fed’s own interest rate is more than six percent below the inflation rate. Stated differently, the Fed is keeping real interest rates negative. And that is not how you wring inflation out of the economy.
No wonder gold started moving back up.
Have you spoken to your Republic Monetary Exchange gold and silver specialist lately? This would be a very good time.