Bullish for gold: Yellen’s appointment merges Treasury and Fed

Investment Research Dynamics/Dave Kranzler

“The appointment of Janet Yellen as Treasury Secretary fully removes the ‘Chinese Wall’ that is supposed to separate the Fed and the Government. I believe her appointment signals a decision to transition monetary policy into the unfettered implementation of ‘Modern Monetary Theory.’”

USAGOLD note:  An interesting read on the new Biden government’s economic policy, Kranzler sees the “merger” as working to “fund a late portion of “the coming bond issuance or risk a rapid escalation in interest rates, especially at the longer end of the curve.” This, he says, is “MMT in a nutshell” and “exceedingly bullish for the precious metals sector.” It will not be long until gold investors – especially the old guard – begin to think about this sort of thing. Judging from the strong run of business at USAGOLD since the election, it seems the process has already begun.

Repost from 12-4-2020

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