Click here to get this article in PDF
Real Investment Advice/Lance Roberts/10-19-2020
“For the Fed to continue providing monetary support to the markets, they must monetize nearly every dollar of U.S. debt issuance for the foreseeable future. “Randy Quarles said the Fed might have to remain engaged in asset buying for some time as financial markets are dealing with too many Treasurys to handle on their own. Total public debt now stands at just under $27 trillion, up from $23 trillion in this year’s first quarter. Debt is also $9.4 trillion higher than in the first quarter of 2008 in the midst of the financial crisis and the Government engaged in a long-running surge in borrowing.” [Wall Street Journal] Given the amount of debt required to sustain current economic growth, the Fed has no choice but to continue monetization of the Federal debt indefinitely.”
USAGOLD note: As Richard Russell once put so succinctly: “Inflate or die!” …… Another good piece of analysis from Lance Roberts. He follows the quote above with two possible end scenarios, neither one of which is very appealing.
The post Neil Kashkari is the definition of ‘moral hazard’ first appeared on Today’s top gold news and opinion.