Gold pushes higher ahead of Fed meeting; CNBC survey reveals high Wall Street expectations for stimulus measures
(USAGOLD –9/15/2020) – Gold continued to push higher in the wake of Treasury Secretary Mnuchin’s cautioning of the Fed and Congress that “now is not the time to worry about shrinking the deficit and the Federal Reserve’s balance sheet.” Mnuchin’s unusual appeal comes ahead of the Fed’s meeting and press conference tomorrow and amidst the ongoing wrangle in Congress over a fiscal spending package. Wall Street, for its part, expects trillions more in stimulus from the Fed and Congress, according to a CNBC survey released this morning. Those expectations look like they might be spilling over to the precious metals markets. Gold is up $11 in today’s early going at $1971. Silver is up 38¢ at $27.60.
“What we are witnessing,” writes economist and fund manager Daniel Lacalle in an essay at the Mises Institute website, “is a generalized fiat currency debasement through extreme monetary policy. That is the reason why gold and silver continue to rise despite hopes of an economic recovery that seems to be stalling. The US Dollar will likely remain the most demanded fiat currency, but the excessive monetary stimulus will ultimately damage the confidence in most fiat currencies.”
Chart of the Day
Chart note: The addition to the national debt through the first two quarters of this year is a record-breaker – over $3.2 trillion – the result of plummeting revenue and soaring expenditures.