• 746 days Will The ECB Continue To Hike Rates?
  • 746 days Forbes: Aramco Remains Largest Company In The Middle East
  • 748 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,147 days Could Crypto Overtake Traditional Investment?
  • 1,152 days Americans Still Quitting Jobs At Record Pace
  • 1,154 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,157 days Is The Dollar Too Strong?
  • 1,158 days Big Tech Disappoints Investors on Earnings Calls
  • 1,158 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,160 days China Is Quietly Trying To Distance Itself From Russia
  • 1,160 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,164 days Crypto Investors Won Big In 2021
  • 1,165 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,165 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,168 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,168 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,171 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,172 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,172 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,174 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

Gold Thoughts

Gold Bugs, this week around the world, will be joining together to celebrate the greatest financial collapse in history, past or future. In bureaucrat-speak, a conservatorship for FNM & FRE is being created. However, Gold Bugs know a duck when they see one. Part of that celebration will be our heartfelt thanks for those at Federal Reserve. In this week's chart we recount the glory of that institution. While FNM & FRE may be financially insolvent, Federal Reserve is intellectually insolvent. Would FNM and FRE have failed if Federal Reserve had acted properly in past two decades, or past 105 years? Creating the Federal Reserve was to reduce economic instability, rather than foster it.

Financial markets may initially applaud the action by U.S. Treasury. Any financial meltdown as a consequence of FNM & FRE has been transferred to a future date. The financial losses hidden in those two entities have not disappeared. The losses have just been temporarily put out of sight, to rise at a later date. Given character of today's financial markets, party may be in order with the threat not imminent. For you see, the losses have been transferred from the bond holders to tomorrow's U.S. taxpayers! Bank of China should send a thank you note to all U.S. taxpayers for their generous support. Should financial markets celebrate this transaction, Gold Bugs will likely have last great buying opportunity of a life time! While FNM & FRE are being reorganized, real culprit escapes. Unless the Federal Reserve is too reorganized, the source of financial diseases will still lurk in the system.

GOLD THOUGHTS come from Ned W. Schmidt,CFA,CEBS, publisher of The Value View Gold Report, monthly, and Trading Thoughts, weekly. To receive these reports, go to http://home.att.net/~nwschmidt/Order_Gold_EMonthlyTT.html.

 

Back to homepage

Leave a comment

Leave a comment