Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Federal Reserve to Start 'QE to Infinity'
March 23, 2020 - (Gold Market Wire) - The US Federal Reserve has pledged to buy Treasury Bonds and Mortgage Backed Securities in unlimited amounts as well as lending to struggling companies and underwriting private household wealth in an attempt to stop further economic contraction from the Coronavirus epidemic.
The Fed has gone “all in”. It is QE to infinity. There are no more Trillion Dollar purchases to be announced – it will now be money in unlimited amounts, wherever, for whatever, forever... and ever.
The Dollar barely moved on the news, while Gold has caught a bid.
Interestingly, equities appear unmoved, and perhaps with good reason. At this rate the government is going to end up owning a share in everything in the economy – if not the whole economy. We are headed into the world of western socialism, most likely replete with capital controls and every possible disaster that socialism brings.
Once we get full MMT in action, the global Central Bank system will eventually collapse –or fade into irrelevance. They are at the end now.
We are entering a new world. And it is unlikely to be a nice one.
Gold may help – much as it has in other socialist countries of the world. It is time to be long the Gold market, and to seek out physical as well.