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Gold

The Fed can’t let bond yields fall to zero

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Bloomberg/Danielle Martino Boothe/3-10-2020

cartoon image of someone digging a hole“But if yields on benchmark 10-year Treasury notes go to zero – a no longer ludicrous suggestion after Russia walked out of the OPEC+ meeting without a deal — then all of those key roles get upended. Especially hard hit will be banks, insurers and pension systems worldwide.”

USAGOLD note:  Martino Booth, who has consistently advocated gold ownership as a disaster hedge, outlines the forces at work in the financial system which could spell disaster for pension funds and create the prospect for federal government bailouts.