Bruce Pile

What Is Going On With Gold?

Down through the decades, the Fed has always taken the policy of gradualism, mindful of the results of overdoing it. Now, if you look at the charts of the Fed's balance sheet, money creation, and other controls it has, they have totally abandoned gradualism and are slamming the valves around. I have to wonder what will happen when all that log-jammed, frozen fiat comes unstuck, money velocity gets out of control, and the Fed has an out-of-control vehicle to deal with. Gold will probably be good to have while the Fed figures it all out.