What Hit Us?

22 May

What Hit Us?

In this commentary we are sharing with you exactly the same message as on our radio messages this week.    

Except this is a little better because now we can also show you what we are talking about.  

It is especially important to see and understand this, because next year people everywhere are going to be wondering what hit us.

So here it is.

The Federal Reserve is printing dollars like Monopoly money!  

The Fed is printing trillions of dollars.  

Here’s a chart of Federal Reserve assets.  You notice that the graph has turned straight up.  It represents the things the Fed owns, financial instruments of one kind or another:  government bonds, mortgage securities and other debt instrument, including junk bonds.  

The Fed acquired all these things by purchasing them.

“Hey, wait a minute!” you might say.  “Where did the Fed get all the money to buy all those things?”  

Good question.  

It printed the money.  Well, it printed it digitally, actually.  But still it just made it up.

Monopoly money

It’s hard to comprehend how fast the Fed is printing money.  Go back and look when we shared this chart with y0u in the middle of April here.  At the time it showed Fed assets of $6 trillion.

Now they are up another trillion dollars, to $7 trillion.

The Fed has printed $2.7 trillion just since the first of March.    

Things are starting to move very fast.  You’ll want to check in on these commentaries more often now just to keep up.  And share them with your friends and family.

The world has experienced these bouts of crazed money printing before.  The always end very badly.  Always.  It is surprising that Fed officials don’t know that.  Or maybe they do.  Maybe they do, but they don’t care.  Or maybe they do, but they don’t feel they have any other choice.

In any case, it is a road to ruination.  Ask your Republic Monetary Exchange precious metals professional to share some examples from history of this kind of thing.  

For now, we’ll just tell you that what they are doing is bad for the cost of living. 

Very bad.  

But good for the price of gold.  

Very good!

Others are going to wonder what hit them.  But you’ll know.  

Just don’t wait to protect yourself.

jim-sign