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Central Missouri | At this point in time, I don't think that policy is even on the fed radar; because if they did it they would be telling the world that they have failed at monetary policy and that the U.S. will devalue its way out of this mess. The ultimate consequence of buying gold in open market operations at some price way above todays price, by the fed, would be higher interest rates because the foreigners would dump our debt and the new buyers would demand a higher rate to entice them to purchase.
Who wants to own debt paper that is being devalued in the open by a central bank? Not I. Who would want to own gold in that environment? Everyone and probably at higher values than the fed would post a buy price because there is a finite amount of gold which can't be printed; Unlike a paper currency that can be and IS being printed at will.
Listen to the Pento interview at King World linked above in relation to this discussion.
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