Gold & silver prices aren’t taking the bait. The Fed will need a lot more than hinted at in today’s FOMC Minutes to bring this bull down…
Bullard sees a problem, but we already know what that is…
The Federal Reserve’s balance sheet is set to exceed a whopping $4 trillion today, prompting warnings its ultra loose monetary policies are inflating asset price bubbles and will lead to a devaluation of the dollar and significant inflation in the coming years.
The Fed’s assets rose to a record $3.99 trillion on December 11, up from $2.82 trillion in September 2012, when it embarked on a third round of bond buying. It’s balance sheet has ballooned by more than $3 trillion or 300% since September 2008 when it was at just $0.91 trillion.
The deterioration in the balance sheet of the Fed and most central banks in the world bodes well for gold prices in 2014.
Submitted by Stewart Thomson:
Quantitative easing and “rates to zero” policy is spreading to every major economy around the world. Horrifically, despite these enormous “fire hoses of liquidity”, gold stocks continue their unending slide. By this point in the gold “super bull” market, most gold stock investors believed they would be wearing a crown of solid gold.
The market never ceases being a fight, and in a super-crisis, the fight becomes a “clash of the titans”. Gold stock investors have never faced a greater challenge than they face right now, but neither have the bears.
The biggest weapon held by gold stock bulls, is the central bank of the United States, and over the next two days, the bank’s open market committee engages in key policy discussions. The meeting culminates with the release of a statement to the public, at 2:15PM, New York time, on Wednesday. For all practical intents and purposes, the primary driver of the gold price is the balance sheet of the central bank of the United States.