User 196790

Profiting From Bernanke's Super-Fed and Obama's Newer Deal

I do believe that the Fed could allow gold prices to inflate to balance their sheets and possibly return us to a global unofficial gold standard, as gold would take the dollar's place as the international reserve currency.

I also believe it could potentially suspend dollar-gold convertibility like FDR, which is why I keep my bullion stored in Australia.


On Jan 23 02:50 PM rothy wrote:

> Naufal, congratulations on an excellent article. I have been studying
> the Fed's balance sheet and come to many similar conclusions. What
> I can't quite understand when people peg the gold price is why they
> choose the Fed's liabilities to measure against the reported gold
> stocks and not a different measure such as M1 or a percentage of
> M3 that might relate to the required reserve ratio. I agree with
> the assessment that all the new money creation ultimately leads to
> inflation but what I find troubling is all of these new ads and discussions
> about gold that have been dormant for several years. It makes me
> wonder if there will be an overt attempt to drive investor dollars
> into gold to allow them to revalue their holdings without having
> to do what FDR did. If they "let" the gold price rise to between
> $6,000 and $10,000 over the next few years in this fashion then they
> could balance their balance sheet. I wonder what happens if their
> liabilities continue to rise as has been stated and their liabilities
> hit 5T in a few years. Would this then imply to you a potential gold
> price of nearly $20,000 per oz? Keep up the great work and I look
> forward to your next post