Fed Will Not Fight Coming Inflation – Craig Hemke

By Greg Hunter’s USAWatchdog.com  Financial writer and precious metals expert Craig Hemke predicted in July that silver was about to start a dramatic move higher.  He was right.  After Tuesday’s smash-down of the metal, Hemke says precious metals investors have nothing to worry about.  Hemke explains, “The important thing to understand is the fundamental stuff that has driven gold and silver higher, especially in the last couple of weeks, none of that has changed. . . . You get these speculative excesses.   They traded on the COMEX futures exchange (Tuesday 8/11/20) 1.5 billion ounces of pretend fake digital silver.  In a normal non-Covid world, the entire globe mines about 850 million ounces of silver.  So, in one day’s trading of the phony baloney plastic silver, they traded two times global mine supply. . . . The picture has not changed fundamentally.  They can trade two times global mine supply and you get these speculative excesses that get wrung out, but that just sets you up for the next move higher.” Hemke also points out that the Fed is signaling new policy changes to prop up the failing economy.  In simple terms, the Fed is going to allow much more inflation than 2%, and on top of that, the Fed is not going to raise interest rates to fight it.  Hemke says, “We are going to have a very bumpy economic growth ride with what has already taken place with Covid and what is going to come.  The Fed has already promised it is going to maintain 0% interest rates on the short end (of the curve) until 2022. . . . The Fed is going to let inflation go past 2% to 3% or 4%.  They are probably going to make this change at the September Fed meeting. . . . They are going to let inflation overshoot 2%. . . . The reason why they do that is you can pay off all this accumulated debt with the less valuable money of tomorrow.  This is how it has always worked. . . .These two policy changes go hand in hand.  They are going to let inflation run, and they are locking in nominal rates and institutionalizing steeper and steeper negative real rates.” Hemke says we have not seen this sort of “perfect storm” in the precious metals market since the 1970’s when gold increased nine fold until it topped out in 1980 at nearly $900 per ounce.  If that happens again, that would put the gold price at nearly $18,000 per ounce.  Hemke says, “This whole system is hyper-leveraged by the central banks.  So, we have no idea how many owners there are for each ounce of gold.  The amount of gold with clear title, we have no idea.  What happens when everybody shows up for their gold?  If I don’t know how many ounces of gold there are, how am I supposed to know what the right price is?” What Hemke can predicted with certainty is “more inflation” and that the Fed will not raise rates to fight inflation until at least after 2022. I asked Hemke for his year-end predictions for the price of gold, and he said “$2,300 to $2,400 per ounce.” For silver, Hemke predicts, “Silver will be $34 to $36 per ounce.”  What the premiums will be on top of that is another story. Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Craig Hemke, founder of TFMetalsReport.com. (To Donate to USAWatchdog.com Click Here) [embedded content] After the Interview: There is some free information on TFMetalsReport.com. If you want to subscribe, use the promo code “Hunter” and get your first month half off.  (This offer expires on 8/21/2020.) This segment is sponsored by Discount Gold and Silver Trading. Ask for Melody Cedarstrom, the owner, at 1-800-375-4188.

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Permanent Economic Damage – Danielle DiMartino Booth

By Greg Hunter’s USAWatchdog.com  Former Fed insider Danielle DiMartino Booth is not a fan of the Federal Reserve, especially now, with its massive money printing campaign.   DiMartino Booth thinks “the damage to the economy is permanent” and that’s not the only thing here to stay.  DiMartino explains, “We are seeing permanent inflation increasing, and we have seen another uptick in initial jobless claims.  This is not the data you want to see if companies want to have pricing power. . . . We do have inflation where it is not measured, and that is in asset prices and housing prices.” Di Martino Booth says the Fed will do everything possible to keep the money printing going.  DiMartino Booth contends, “Anything they can do to keep the printing presses running, any cover they can try and create, any type of narrative they can try and paint that allows them justification to go from a $4.5 trillion balance sheet to a $7 trillion balance sheet. . . . The Fed is looking for cover to continue its constant quantitative easing (money printing) campaign.  If it says it is going to let inflation run hot, it has that cover it is looking for.  It is always about lower for longer.  It is always about keeping the printing press running 24/7.” DiMartino Booth says don’t take the stock market highs at face value because if you look deeper, things are not that good.  DiMartino Booth says, “The concentration of the seven largest stocks is now $8 trillion.  That is larger than most countries, by the way.  Without them, the S&P 500, the broadest benchmark stock index in the country, would be . . . a down year in the stock market.” On the other hand, DiMartino Booth says the bailouts mostly benefited Wall Street and not Main Street.  DiMartino Boot explains, “This is the haves and have nots of credit.  If you are a small or midsize company, good luck.  It’s very difficult to find credit.  If you are the biggest companies . . . you don’t even have to have profits.  You can just get as much money as you want to keep going.  So, it is as bifurcated as it comes. . . . There has not been as much discussion as needed about the monetary policy at the Federal Reserve that has done a bang-up job of keeping the largest companies going while we have watched a lot of Mom and Pops, that . . . just needed a liquidity bridge, go by the wayside.  This has been a tremendous fiscal and monetary failing.” DiMartino Booth also warns, “As long as you have this type of damage and business travel being eviscerated, you are going to see permanent damage to the economy.  You will see entire hotel chains close down, and those jobs be lost for good in many cases.” On unemployment in America, Di Martino Booth predicts, “at least 25% of these job loses will be permanent in nature stretching out through 2021. . . . I think there will be permanent damage to the housing market too . . . . Now, what we are seeing are evictions.” Why are gold and silver prices taking off in the past few months?  DiMartino Booth says, “The reason you have seen as much interest as you have in gold comes down to something very simple.  We are in a speculative ball right now.  Whether you are talking about junk bonds or the stock market, everything has gone completely haywire. . . . When the peanut butter hits the fan, gold is the one place where investors can find the protection they need. . . . As long as there is anxiety and disruption potential, that is what makes gold the perfect hedge whether you see deflation or inflation further out on the horizon.” Join Greg Hunter as he goes One-on-One with financial expert and former Fed insider Danielle DiMartino Booth, founder of Quillintelligence.com.   (To Donate to USAWatchdog.com Click Here) [embedded content] After the Interview:  DiMartino Booth founded Quillintelligence.com. There is some free information there. She also offers a subscription service for original cutting edge analysis called “The Daily Feather” and the “Weekly Quill.”  To become a subscriber click here.  There is also some free information and articles on DiMartinoBooth.com.

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