To see increasing interventions and expansions of the Federal Reserve's balance sheet, following a decade of low-interest rates that never even got above 2.5%, is concerning. It is becoming common knowledge the Fed is going to have to double its balance sheet in the decade to come. Be it the Baby Boomer Retirement Crisis building, or just the sheer extent of financial leverage involved today.
Of course, we don't even know how much currency the Fed is genuinely lending and creating, let alone what might be going on in other areas of the banking and government establishment like the Exchange Stabilization Fund.
In 10 or 20 years from now, will we look back on this latest round of Federal Reserve intervention as one of the final steps before losing full fiat US dollar dominance?
If this current sized intervention is what the Fed does when it says that financial markets are still okay, imagine how much currency they will ultimately use in propping up financial markets when the ugly truth, bear markets again.
Once the underlying problems that have led to this building turmoil are finally exposed and known by all market participants, it will likely be too late to be bullish bullion at current historically low valuations.
Forget Silly Textbook Notions of Capitalism
A human being's susceptibility to corruption guarantees neither pure capitalism nor pure socialism will ever be achieved on this Earth. We have to study crony capitalism/socialism history and its ongoing actor's actions to know where this may all lead.
Here we attempt to think about how the global debt structural write-offs will continue and ultimately crescendo. Soberly one can expect further social contract destruction ahead. Brace for more devaluations of promises and currencies issued via central bank decisions to come. Average non-Lords like us here, we have little say in the matter other than perhaps how we choose to protect ourselves from financial destruction restructuring.
A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.
Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades.