{"id":52815,"date":"2020-04-28T07:06:43","date_gmt":"2020-04-28T12:06:43","guid":{"rendered":"https:\/\/olduvai.ca\/?p=52815"},"modified":"2020-04-28T07:06:47","modified_gmt":"2020-04-28T12:06:47","slug":"finally-it-matters-what-the-fed-can-and-cant-print","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=52815","title":{"rendered":"Finally, It Matters What The Fed Can And Can\u2019t Print"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.dollarcollapse.com\/fed-can-print\/\">Finally, It Matters What The Fed Can And Can\u2019t Print<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Sound money advocates have been proclaiming that \u201cthe Fed can\u2019t print gold\u201d pretty much since the end of the last gold standard in 1971. But no one outside our little echo chamber paid attention, fixating instead on what the Fed&nbsp;<em>could<\/em>&nbsp;print: trillions of dollars that were perfectly fine for buying anything a creditworthy person could want. To paraphrase the old Saturday Night Live skit,&nbsp;<em><a href=\"http:\/\/www.thisdayinquotes.com\/2009\/12\/baseball-been-berry-berry-good-to-me.html\">\u201cFiat currency has been berry berry good to me.\u201d<\/a><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the reaction of the world\u2019s central banks to this latest crisis \u2013 effectively unlimited currency creation to buy up\/bail out everything everywhere \u2013 seems to have rattled people who in the past have viewed aggressively-easy money as an unequivocally good thing:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/business.financialpost.com\/investing\/gold-to-reach-3000-50-above-its-record-bank-of-america-says\"><strong>\u2018The Fed can\u2019t print gold\u2019: How the yellow metal could hit $3,000 \u2014 50% above the current record<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(Financial Post) \u2013 Bank of America Corp. raised its 18-month gold-price target to US$3,000 an ounce \u2014 more than 50 per cent above the existing price record \u2014 in a report titled \u201cThe Fed can\u2019t print gold.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bank increased its target from US$2,000 previously, as policy makers across the globe unleash vast amounts of fiscal and monetary stimulus to help shore up economies hurt by the coronavirus.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAs economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure,\u201d analysts including Michael Widmer and Francisco Blanch said in the report. \u201cInvestors will aim for gold.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">BofA expects bullion to average US$1,695 an ounce this year and US$2,063 in 2021. The record of US$1,921.17 was set in September 2011. Spot prices traded around US$1,678 on Tuesday and are up 11 per cent this year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To be sure, a strong dollar, reduced financial market volatility, and lower jewelry demand in India and China could remain headwinds for gold, BofA said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Finally, It Matters What The Fed Can And Can\u2019t Print Sound money advocates have been proclaiming that \u201cthe Fed can\u2019t print gold\u201d pretty much since the end of the last gold standard in 1971. But no one outside our little echo chamber paid attention, fixating instead on what the Fed&nbsp;could&nbsp;print: trillions of dollars that were [&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":[309,7544,3650],"class_list":["post-52815","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fiat-currency","tag-john-rubino","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52815","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=52815"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52815\/revisions"}],"predecessor-version":[{"id":52816,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52815\/revisions\/52816"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}