There were reasons to be bullish on silver even before the bottom fell out of the stock market. In its 2020 Market Forecast, the Silver Institute projected that silver would shine with higher prices supported by expanded physical investment and industrial demand. The market dynamics have certainly changed since the institute released that report, but there are still reasons to be bullish on the white metal.
We just wrapped up the worst first quarter in the history of the US stock market. Think about that in context. Even during the dark days of the Great Depression, there has never been a worse start to a year for the US stock market than 2020.
Nevertheless, there are still a lot of people out there who think this is going to be a short bear market. As Peter Schiff put it in his podcast, that’s because they’re still fixated on the pin.
In yet another unprecedented attempt to keep the air in the financial bubbles, the Federal Reserve announced the establishment of an international repo facility.
The repo facility will allow foreign central banks and other international monetary authorities to enter into repurchase agreements with the Federal Reserve. According to the Fed announcement, FIMA account holders can temporarily exchange their US Treasury securities held with the Federal Reserve for dollars that can then be made available to institutions in their jurisdictions.
The Federal Reserve is injecting trillions of dollars of monetary stimulus into the financial system to ‘help’ the economy through the coronavirus pandemic. This is the same kind of ‘help’ the central bank offered in 2008. But as Peter Schiff explains in his latest podcast, this kind of ‘help’ is actually hurting. In fact, the ‘help’ we got in 2008 set us up for the crisis we’re entering today.
As the coronavirus-induced economic lockdowns have tightened across the US, we’ve seen the emergence of a government-inspired fantasy – the myth of the nonessential business.
The evil Empire has the ultimate weapon – the printing press. This diabolical machine is capable of bringing death to the dollar and destroying the entire economy. Watch the drama unfold as Peter Schiff and his rag-tag band of Austrian School economists fights the evil empire and tries to save the Republic from the Keynesian menace.
Last week, Congress passed a $2 trillion stimulus bill in an effort to offset the economic impacts of the coronavirus. Most people have focused on the $1,200 checks to Americans and bailouts for industries hard-hit by the economic shutdown. But the 883-page bill does a lot more than that, including empowering the Federal Reserve to hand out billions of dollars in complete secrecy.
All eyes have been on the stock market in recent weeks as it has reflected the fears about the coronavirus-induced economic shutdown and the hopes of massive stimulus. It’s been quite a rollercoaster ride. But in his podcast on March 27, Peter Schiff said there’s an even bigger problem looming on the horizon that people aren’t paying any attention to – the potential destruction of the dollar. He said Americans are in for a rude awakening.
On Monday, the Fed announced QE infinity and by mid-week, Congress had agreed on a $2 trillion stimulus package to battle the economic impacts of the coronavirus. That launched us into a bizarro world where a weekly record of over 3 million unemployment claims led to a huge stock market rally. As Mike Maharrey put it in this Week’s Friday Gold Wrap podcast, ladies and gentlemen, we’ve been stimulated. So, what exactly did the Fed do? What are the long-term ramifications? And can it work? Maharrey talks about all this and more in this week’s Gold Wrap.