Fed Trapped in Its Own Matrix at an Enormous Cost
April 8, 2012
With gold opening $15 higher and silver also higher, 40 year veteran, Robert Fitzwilson wrote this exclusive piece for King World News. Fitzwilson is founder of The Portola Group, one of the premier boutique firms in the United States. Here are Fitzwilson’s observations: “As the financial crises began to unfold in late 2008, central banks took massive and monumental steps to try and stabilize the financial system and get economic activity back on track. One could argue that the financial system has been stabilized, but at an enormous cost in the trillions.”
Robert Fitzwilson continues:
The elusive goal of getting employment, housing and the gross domestic product back on track still evades the central banks, despite throwing everything but the kitchen sink at the problem. That is, almost everything. A consensus appears to be building that the central banks are now focused on what is referred to as nominal GDP.
Nominal means making the calculation before taking into account the effect of prices on the ‘real’ value of the economic activity. We believe that there are structural and resource-related constraints to growing the economy. Therefore, the easiest way to generate nominal GDP in our view would be to let prices rise….