{"id":37821,"date":"2018-09-15T12:12:08","date_gmt":"2018-09-15T17:12:08","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37821"},"modified":"2018-09-15T12:12:08","modified_gmt":"2018-09-15T17:12:08","slug":"when-the-u-s-stock-market-crashes-buy-gold-david-brady","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37821","title":{"rendered":"When The U.S. Stock Market Crashes, Buy Gold &#8211; David Brady\u00a0"},"content":{"rendered":"<h3><a href=\"https:\/\/www.sprottmoney.com\/Blog\/when-the-us-stock-market-crashes-buy-gold.html\">When The U.S. Stock Market Crashes, Buy Gold &#8211; David Brady\u00a0<\/a><\/h3>\n<p>While we wait for news on the 25% tariffs on $200bln or 40% of Chinese exports to the U.S.\u2014and with the threat of the same on the remaining ~$300bln to follow\u2014I want to outline the endgame for the dollar and the likely beginning of the explosive rally for Gold.<\/p>\n<p>Simply put: <b><strong>When the U.S. stock market crashes, buy Gold.<\/strong><\/b><\/p>\n<p>To be more specific: when the S&amp;P 500 has fallen 20-30%, buy Gold, in my opinion, because the \u2018Fed Put\u2019 will soon be exercised at that point. The Fed will reverse policy to stimulus on steroids. The dollar rallied from April 2008 and peaked in March 2009, when stocks bottomed out\u2014the same time the Fed announced QE, or QE1 as we now know it. Then the dollar fell. It is not unreasonable to expect the same to happen this time around. Gold bottomed out in October 2008, as stocks plummeted and then soared 280% to greater than 1900 over the next three years, as QE1 and QE2 were underway.<\/p>\n<p>The coming crash in the U.S. stock market is the catalyst for the Fed\u2019s reversal in policy, so why do I expect a crash?<\/p>\n<p><b><strong>Quantitative Tightening and Budget Deficits<\/strong><\/b><\/p>\n<p>Lee Adler pointed out several weeks ago that as the budget deficit soars, Treasury bond issuance is increasing by around $100bln per month. At the same time, the Fed is increasing its balance sheet reduction, or \u201cQT\u201d program, to $50bln a month in October, a run-rate of $600bln per year. That means $150bln of additional demand for U.S. Treasuries is required every month.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When The U.S. Stock Market Crashes, Buy Gold &#8211; David Brady\u00a0 While we wait for news on the 25% tariffs on $200bln or 40% of Chinese exports to the U.S.\u2014and with the threat of the same on the remaining ~$300bln to follow\u2014I want to outline the endgame for the dollar and the likely beginning of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[13082,303,374,501,661,662,6355,3650,2442],"class_list":["post-37821","post","type-post","status-publish","format-standard","hentry","category-economics","tag-david-brady","tag-fed","tag-gold","tag-market-crash","tag-qe","tag-quantitative-easing","tag-sprott-money","tag-us-federal-reserve","tag-us-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37821"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37821\/revisions"}],"predecessor-version":[{"id":37822,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37821\/revisions\/37822"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}