Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Adrian Day: The Fed Is Out of Control and That’s Bullish for Gold

  by    0   0

Adrian Day did an interview with Kitco News and said gold will finish the year over $2,000 an ounce and investors shouldn’t worry about short-term profit-taking and consolidation. Why? Because the Federal Reserve is out of control.

Day is the CEO of Adrian Day Asset Management and also works with Peter Schiff as the portfolio manager of EuroPacific’s gold fund.

I definitely think we can see new highs before the end of the year, absolutely. And stay over $2,000. “

Day said the key is the Federal Reserve  – it’s actions not its words. They will often talk about rolling things back and normalizing policy. But the reality of the pull-back is always very minor.

They simply cannot pull back for one reason or another. Sometimes it’s just because the market gets a hissy-fit. Remember the end of 2018? Seems so quaint right now, doesn’t it? So long ago. But the Fed started to raise rates. They had already stopped increasing the balance sheet. They started to increase rates and the stock market had a hissy-fit, and they immediately reversed. Any excuse or reason, however you care to put it. I care to say excuse. But any reason, whether it’s Brexit, or whether it’s the stock market, or whether it’s whatever, it doesn’t matter.  There’s that expression when you’re a hammer, everything looks like a nail — and that’s the way it is with the Fed.”

Day emphasized a key point that we’ve made over and over — the Fed was engaged in extraordinary monetary policy before the pandemic.

So, corona didn’t cause this explosion. Something would have happened sooner or later to cause this.”

And Day said he believes we’ve reached a point of no return.

“The fed is out of control.  Jerome Powell himself has said there are no limits. There are no red lines. Jerome Powell has said we are not even thinking about thinking about raising rates.”

Powell has also said he doesn’t think the Federal Reserve will ever shrink its balance sheet. It will simply let the economy grow into it. So, the Fed isn’t even considering tightening.

It can’t do it. It’s just a matter of expanding, halting, expanding, halting.  And that is about the most positive environment for gold that you can possibly think of.”

Meanwhile, the government continues to spend money at a staggering pace, running record deficits.

The government, whether its the administration or Congress, is spending money out of thin air. Ther is not even the slightest pretense that we’re going to pay for it. No one is even talking about that. At least in the past, people said, ‘Well, we’ll have a deficit now but we’ll pay for it later,’ or, ‘We’ll have to raise rates to pay for this.’ They’re just spending and the Fed is creating the money to go along with it.”

The question is will the government stop spending money on stimulus? Is the Fed going to stop printing money to monetize the debt?

Of course not. The Fed is going to continue to create the money. And whether it’s unemployment benefits, whether it’s a new works program, or infrastructure program or whatever, the Fed is simply going to create the money without even a pip of objection. We know that. So, this is incredibly bullish for gold.”

Download SchiffGold's Gold vs GLD EFT's Guide Today

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

The Great Inflation Debate (Video)

Is inflation “transitory,” the result of a quickly recovering post-pandemic economy as Jerome Powell insists? Or is it a long-term phenomenon resulting from loose monetary policy that’s not about to abate anytime soon? Peter Schiff recently participated in the “great inflation debate” on RT’s Cross Talk with Peter Lavelle, along with American Institute for Economic […]

READ MORE →

Peter Schiff and Tucker Carlson Talk About Skyrocketing Prices and the Inflation Tax

Inflation is running hot right now. The May CPI data came in hotter than expected, a trend we’ve seen every month this year. But the Federal Reserve and the mainstream financial media continue to insist inflation “transitory.” Peter Schiff recently appeared with Tucker Carlson on Fox News to talk about skyrocketing prices.

READ MORE →

Peter Schiff and Ben Shapiro: The Government Is Wrecking the Economy

In many ways, it appears the economy is beginning to recover from the shocks of the coronavirus pandemic. GDP growth is way up. The stock market is soaring.  A lot of people are optimistic. But during an appearance on the Ben Shapiro Show, Peter Schiff said this isn’t a real recovery, and he explains how […]

READ MORE →

Peter Schiff: The Surplus of Printed Dollars Is Driving Price Inflation

The Consumer Price Index came in much hotter than expected last week. The mainstream chalks rising prices to supply chain and production issues caused by the pandemic. But in a recent interview on NTD News, Peter Schiff says there’s more to it than that. Prices are rising because a surplus of printed dollars is bidding […]

READ MORE →

Peter Schiff and Tucker Carlson: The Financial Crisis Will Be Worse Than the Pandemic

Consumer Price Index (CPI) data for April came in much hotter than expected. Year-on-year, inflation is up 4.2%. The big number even prompted Federal Reserve Vice Chairman Richard Clarida to say, “We were surprised by higher than expected inflation data.” Peter Schiff appeared on Tucker Carlson’s show to talk about the consequences of more printed money […]

READ MORE →

Comments are closed.

Call Now