The next wave of monetary intervention could involve $7-10 trillion in new money printing, dwarfing the scale and speed of Bernanke’s era.
A potential $2 trillion Federal Reserve bailout plan may include swap lines to hedge funds, removing supplementary leverage ratios for banks, and other measures to prevent financial system collapse.
The dollar has declined 11% in a quarter, reaching a 100 level, signaling growing threats to the bond market, stock market, and currencies.
A one-time reset to a gold-backed currency could drive gold prices to $5,000 or more, potentially reaching $15,000-$20,000 in the long term.
The reset would involve a one-time high inflation rate of 10-15%, followed by zero inflation due to the sound, gold-backed currency.
Bitcoin is described as an emerging form of sound money with digital scarcity, offering 16-year performance that surpasses gold, making it a must-have for aggressive investors.
The Fed’s independence is at risk due to the Trump-Powell power play, potentially leading to the big print and lower rates to support the economy.
The monetary system is compared to the Titanic, with gold and Bitcoin serving as seats in lifeboats to protect against inflation and monetary collapse.
Professor Steve Hanke forecasts a 90% probability of a technical recession in the US this year, citing money supply contraction and regime uncertainty.
The current US money supply growth rate of 3.9% is considered anemic, falling below the 6% golden growth rate needed to achieve the 2% inflation target.
The quantity theory of money is deemed the best predictor of national income and nominal GDP, with changes in money supply affecting GDP 1-2 years later.
The Fed’s QT program continues at a reduced rate of $5 billion per month, insufficient to significantly inject capital into the economy.
The true US inflation index is 2.4%, lower than both the headline CPI and the Fed’s preferred PCE measure of 2.5%.
Commercial bank loan growth stands at 3.4%, aligning closely with the M2 money supply growth of 3.9%.
China faces a potential deflationary doom loop due to a balance sheet recession, with actual money supply growth at 7% versus the ideal 10%.
The current economic situation resembles the Smooth Holly scenario of the Great Depression, albeit less severe, characterized by regime change uncertainty.
The US stock market is in bubble territory according to Hanke’s detector, with a predicted 15-30% correction due to slowing economy and diminishing earnings growth.
Hanke recommends buying gold as a hedge against inflation and uncertainty, noting its 40% rally in the past year and expecting continued growth as central banks shift from dollars to gold.
Central banks are quietly reintegrating gold into the monetary system, evidenced by massive inflows into the US and new price highs, despite mainstream media’s lack of attention.
The biggest money in the world is methodically accumulating gold and silver, positioning ahead of public awareness, as seen in the draining of LBMA to unprecedented levels.
The gold-silver ratio at a 104:1 historical extreme presents a once-in-a-generation opportunity to buy silver at a 40% discount to its 1980 price.
Silver has historically lagged behind gold in bull markets but eventually dramatically outperforms gold on a percentage basis.
The LBMA’s shortage of trucks for physical gold delivery is causing massive discrepancies between paper contracts and available gold bars, indicating strong global demand.
A half-dozen commercial banks control the largest short position in silver on COMEX, with price suppression driven by military-industrial complex demand.
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