As written in William Shakespeare’s Hamlet, Marcellus stated “Something is rotten in the state of Denmark”. Indeed, something is clearly not right with silver these days!
The Federal Reserve just announced, moments ago, they are dropping interest rates to ZERO, and also started a massive new $700 Billion Quantitative Easing program. Quantitative Easing (or QE) is a fancy name for printing more currency and pushing it into circulation.
I am sure this post will get a rash of blogger hate-mail accusing me of being a “doom & gloomer”, but this is a topic I believe needs discussion. We can’t stick our heads in the sand, and pretend there is no crisis. It is real. It is here. Those who have known me a long time know I prefer the positive, but when facts justify decisive action, I will act accordingly using best judgement, backed by data, without all the emotional baggage.
Major banks and hedge funds around the world have for years remained high “mainlining” their drug of choice, a cheap dollar. Their drug “dealer”, the Federal Reserve, has been complicit in their addiction, and today made yet another delivery by increasing the daily dosage allowed to $175 billion from $150 billion!
Have ALL leading members of the Federal Reserve system lost their flipp’in minds? Just three weeks after former Federal Reserve Chairwoman Janet Yellen suggested the Fed should buy stocks, Boston Fed President Eric Rosengren this week also suggested that the Fed should buy “a broader range of assets” such as corporate bonds, and YES, STOCKS! So let me get this straight: The Fed’s irresponsibility creates a big fat massive credit market problem, but they want to instead fix to the stock market???
Money talks, and Wall Street had gotten used to getting its way. Now along comes a little tiny coronavirus flu bug, and it has brought Wall Street banks, hedge funds, and the world economy to their knees!
When founded in 1914, the Federal Reserve’s sole purpose was to ensure the dollar maintains a stable value. Since 1914 the dollar has lost 98% of its value, and since 1971 when President Nixon ended gold backing for the dollar, it has lost over 85% of its value. In the next few years, as the Fed prints and adds TRILLIONs to the currency supply, the dollar will likely lose 100% of its value! THE FED HAS FAILED ITS MISSION and should be ended effective immediately!
A central bank’s answer to EVERYTHING is to print more currency! We should all know this by now. Stocks drop? Print currency! Impeachment? Print more currency! AIG fails? Bail ’em out with trillions in printed currency!
Now we face a coronavirus flu pandemic, and we are learning that the proper prescription is…..drum roll please…… print more currency. Yup! The Federal Reserve along with other central banks believe they can cure a bad flu bug by adding more currency to the money supply!
The Dow Jones Industrial Average fell by over 600 points Friday, and is primed for a substantially larger and prolonged bear market, perhaps taking the Dow down by over 50% in the next 2 years. The news media is blaming the coronavirus pandemic, but there is much more to this market panic than 15,000 people out of a world population of 8 billion getting a bad flu!
In the past month, I have learned of two cases where LARGE banks (US Bank, and Bank of America), have refused to honor legitimate checking account (demand deposit) withdrawal requests for a larger amount of cash! Let me begin by pointing out…..THIS IS FRAUD!!! I have encouraged the harmed depositors to reach out to the local 9-News station, and publicize what they experienced. Here are their stories as related to me.