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MarketWatch/Greg Robb
“The Federal Reserve isn’t contemplating pulling back on its bond-buying program even though there is widespread optimism about the medium-term economic outlook given promising news on COVID-19 vaccines, Fed chief Jerome Powell said Wednesday.”
USAGOLD note: As former Bank for International Settlements economist William White recently pointed out, the Fed is in a debt trap from which there is no easy exit. If it stops buying bonds the markets collapse. If it continues to buy, it fosters the support of zombie companies, moral hazard, and more bad debt. In the last issue of our monthly newsletter, we called the situation a monetary version of the movie, Groundhog Day, in which the markets wake up each turn of the cycle to a new and deeper version of the same crisis.
Repost from 12-3-2020
The post Powell on curtailing bond purchases: ‘The time will come’ but it’s now now’ first appeared on Today’s top gold news and opinion.