Fed Chair Powell Restates the ‘Company Line’

All precious metal prices bounced today, following comments made at Jackson Hole, by Federal Reserve Chairman Jerome Powell. Gold jumped over the $1,200 an ounce barrier, probably not to return. Silver found legs thought to have been long since severed by central banks, while platinum and palladium made handsome leaps. The Fed Chair reported that the U.S. economy has “strength and stability,” and is not displaying any risk of overheating whatsoever. “The economy is strong. Inflation is near our 2% objective, and most people who want a job are finding one.” All that good news promptly sent the dollar into a tailspin.

Gold’s four-month downtrend is most probably due to the fact that the market has already priced in an interest rate increase for next month, as well as another before the end of the year. Wall Street remains bullish on gold’s future, while Main Street investors have flipped to bullish, based on recent global and domestic events. Threatening Iran with economic warfare has demanded attention from all oil-producing nations and the festering China trade war is wrestling the attention of American investors, but we’re making a terrible mistake if we follow President Trump’s logic that America ‘looses’ from a trade deficit.

The real problem is that Americans simply don’t understand the power and luxury we enjoy today, by being the planet’s premier world reserve currency. We’ve taken it for granted for so long, that we simply can’t see the forest through the trees. The President is telling foreign buyers that if they want the ‘privilege’ of buying American products, they can ‘damned well pay for it!’ But by saying that he, like other Americans, is missing the point that we’re sending bushels, of our still wet from the printing press fiat currency, to another country and receiving tangible goods and services in return. Running a trade deficit is part of the deal, when you’re the premier world reserve currency. No other country has that luxury and unfortunately, the more we don’t acknowledge or appreciate that benefit, the more other countries will seek to end the advantage.

Ignorance is no excuse. Though the media has not made an issue out of it, the simple fact of the matter is that China has more than twenty countries bypassing dollar usage in oil transactions, by way of the Shanghai Energy Exchange and Russia is installing the S-400 defensive missile system throughout Saudi Arabia. Those two developments completely neutralize the Nixon/Faisal Agreement made back in the 70’s that solidified the dollar as the premier world reserve currency. Meanwhile the International Monetary Fund has been holding secret meetings to discuss replacing the dollar with some type of IMF-backed ‘world currency.’ We’ve been travelling under the radar for years, but this new, apparent, and aggressive global trade attitude is going to destroy the economy it seeks to enhance. Precious metals are your best protection from a currency devaluation and American Bullion is your best source for assistance at (800) 653-4653.