The markets wait with baited breath for word from the Fed concerning the direction stimulus will be heading. Will the Fed reduce bond purchases by 10 Billion per month? Will they continue to print money as long as cotton is plentiful? Let’s take a simple look at it from this standpoint.
1.Washington is insolvent without Fed money.
2.Wall Street has been on life support from the Fed since 2008. Wall Street gains are totally dependent on Fed money.
3.Approximately 72 percent of the jobs added over the past twelve months are part-time, low wage. Working class Americans are struggling to provide even basic essentials for their families.
4.As the Fed raised rates, home sales slowed once again across the U.S.
5. Industry continues to falter unless you want to believe cherry picked stats.
6. Above all of these, lending money is something the Fed will never give up. Business is too good.
If we do see a pull back on stimulus, it will only be momentary. Our debt based system cannot sustain itself without Fed money, period.
As we continue to see gold prices suppressed, don’t buy the hype. Fed monetary policies guarantee gold is coming back stronger than ever.