This story was originally published here.
I (Drew McConnell) sat in shock…
Did he really just say that?
I looked to my wife, rolled back the footage, and said, “Listen to this.”
Last month, television-news series 60 Minutes ran an interview with the President of the Federal Reserve (“Fed”) Bank of Minneapolis, Neel Kashkari. Kashkari was an important figure following the 2008 financial crisis. He oversaw the $700 billion government Troubled Asset Relief Program (“TARP”).
Right now, he's one of five Fed presidents who serve as voting members of the Federal Open Market Committee (“FOMC”)… So he's tuned in to what the Fed is thinking and planning.
Early in the interview, Kashkari was asked, “Is the Fed just going to print money?” He responded…
That's literally what Congress has told us to do. That's the authority that they have given us.
That alone is an incredible statement. But later, Kashkari was asked if people should be concerned about their cash in the bank. He responded (our emphasis added)…
There's an infinite amount of cash at the Federal Reserve. We will do whatever we need to make sure that there's enough cash in the banking system.
That was it. I had to rewind the show. I had to make sure I heard him correctly. Sure enough, those were the exact words from a leader at the Federal Reserve.
The Fed's playbook is on the table. The people in power are all saying, “We need stimulus! Fire up the printing presses!” So that's what the Fed will do.
We have no doubt they'll use that power to create more new cash than most folks can imagine. And as we'll explain today, this is an absolutely massive tailwind for gold…
To help stabilize the economy during this coronavirus crisis, some folks expect the Fed will print a total of more than $10 trillion. Whatever the number is in the end, it will be a lot. And we already know at least one of the outcomes.
Printing new money devalues the dollars that are currently in circulation. At some point, it's almost guaranteed to cause inflation. The prices for just about everything will go up.
But that's the last thing on our leaders' minds right now. With the U.S. economy basically at a standstill, they're far more worried about deflation – or prices dropping – due to lack of demand.
The thing is, the longer it takes for the economy to get back into gear, the more money the Fed will print. It has already told us it won't stop.
We can already see the magnitude of the Fed's actions in the following chart. Each week, the Federal Reserve Bank of St. Louis publishes the total amount of assets on the Fed's balance sheet. It includes U.S. Treasurys, U.S. dollars, foreign currencies, mortgage-backed securities, and even gold.
Since mid-March, the Fed's total assets have jumped by more than $2 trillion, or roughly 55%…
Clearly, the Fed is going to do whatever it takes to ease the effects of the current crisis.
That's why, when I saw this interview, it became clear… Precious metals are a steal at today's prices.
Editor's Note: For the full story, click here.
Widely-followed gold analyst: “Perfect storm could send $7 firm soaring”
Something strange is happening in the financial system…
And according to the Wall Street Journal, it's causing some investors –- including the world's biggest banks – to move massive amounts of cash out of the banking system.
I recently met up with widely-followed hard asset expert Bill Shaw at his firm's east-coast headquarters.
Over the past two decades, Mr. Shaw's firm has grown from tiny startup into a publishing powerhouse – serving more than a million readers in more than 150 countries.
Since 1999, the firm owes its legendary status as a trusted source of financial research to its eerily-accurate track record of often-controversial financial predictions, including:
- The Dotcom Crash…
- The bankruptcy of General Motors…
- The real estate bubble…
- The fall of General Electric…
- And the bankruptcy of Freddie and Fannie.
Recently, Bill revealed a brand-new prediction that has caught many by surprise.
He explained, “I'm not the kind of guy who gives in to hype and big predictions… that's why I've waited nearly a decade — to make sure the timing is right for the biggest prediction of my career.“
He went on to explain that over the next few years, he sees massive bull market developing in a sector of the economy that, over the years, has been completely ignored by nearly every investor in America.
The hard-asset expert said:
“Events happening around the world are about to come together at just the right time to create a perfect storm, causing some of the world's biggest investors to dump cash and stocks – and pile into this long-hated asset.
In fact, it's already begun.”
After dedicating hours to painstaking examination, ensuring he considered every possible angle, Mr. Shaw has put together a free presentation to explain exactly what he sees coming… and the best way for Americans prepare.
P.S. I should warn you – some may be surprised by Mr. Shaw's massive prediction. The fact is, even if he's only half right, the world's financial system could look very different in the next few years.