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Evergreen Gavekal/Louis-Vincent Gave/7-31-2020
Source: Federal Reserve Bank of St. Louis
“Over the last few months US monetary growth has broken new highs week-after-week. Today US M2 growth stands at 24.9% year-on-year, more than six times the structural growth rate of nominal GDP. So the idea that cash is in danger of becoming worthless is no delusion; this rate of money printing has never been seen before in the history of the US, or of any other G7 economy.”
USAGOLD note: Gave concentrates on the effects of the enormous growth in money supply on various financial assets including gold. “Historically, once gold bull markets get going,” he writes, “they tend to be long, drawn-out affairs, interrupted only by sharp tightening from the US Federal Reserve, as in 1981, or by a sustained rise in the US dollar, as in 2012. Today, neither appears to be on the cards. So, what will stop the bull market in gold?”