Greyerz – Massive $14,000 Gold Revaluation May Be Only Way Out For U.S.

Sunday, March 31, 2019
By Paul Martin
March 31, 2019

As the world edges closer to the next crisis, today the man who has become legendary for his predictions on QE and historic moves in currencies told King World News that the Fed may revalue gold to $14,000 as a major warning signal flashes red.

Major Warning Signal Is Flashing Red
March 31 (King World News) – Egon von Greyerz: One of the Fed’s three main objectives is to maintain stable prices. But they have never achieved that, at least not since 1971. Again, last week the Fed did a volte face (turnaround) because they have a total inability to read the economy. The clueless Fed overslept and realized a few years too late that the US economy was overheating. When the economy was turning down, the Fed started to increase rates and implement QT (quantitative tightening). But now they are panicking and reversing policy again. I discussed the incompetence of the Fed last week on KWN.

Below is the Fed’s Incompetence Chart. Some people would use a sophisticated description like an inverted yield curve when the rate goes negative. But that doesn’t tell the real story. The chart shows the 10 year US Treasury minus the Fed Funds rate. This spread has just gone negative, which means that 10 year rates are lower than short term rates. This is interpreted as a high probability that a recession is imminent.

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