“The Fed’s monetary policy has been too lax for way too long.”– Sr. Advisor Damian White
As inflation and living expenses skyrocket, the average American is becoming increasingly interested in what’s going on behind the curtain. Investors are eagerly trying to figure out what the government is doing wrong and what it’s doing to improve the situation.
The Central Bank is a primary figure in this narrative that generates a lot of questions. Watch the video to hear Precious Metal Advisor Todd Graf and Sr. Advisor Damian White explain the role the Central Bank is playing in the current economic downturn.
How does the Federal Reserve work?
The Federal Reserve is the central banking system of the United States which is responsible for controlling the country’s monetary system and alleviating financial crises. It was originally established in 1913 in response to a number of scary financial episodes.
The Fed sets US monetary policies, regulates the banking system, manages financial risk, and determines how much money is in circulation. As with all government bodies, there’s a big difference between what’s on paper and what actually happens in the real world.
Where the Fed has gone wrong.
Ironically, the Fed’s misguided financial policies bear significant responsibility for the economic predicament in which we’re currently embroiled. In the midst of the pandemic, the government churned out nearly $5 trillion dollars to stave off an economic fallout. On top of that, interest rates were held at 0% throughout much of 2021.
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The economy is now reeling from the results of these harmful decisions in the form of soaring inflation and the threat of hyperinflation. The Fed’s 11th-hour decision to hike interest rates comes a year too late and only exacerbates the pain felt by investors. In reality, the Fed’s ill-advised monetary decisions date back decades. We’re just now dealing with the results.
Exporting inflation to the world.
The lessons of the Fed’s detrimental financial policies are written on the wall, but our financial czars continue leaning into these poor decisions. Just a month after Treasure Secretary Janet Yellen admitted that she was wrong about inflation, the central bank is still buying bonds which only adds fuel to the fiery state of inflation.
As the world’s reserve currency, the US dollar directly impacts the performance of economies across the globe. With inflation at home reaching higher and higher, the situation is getting increasingly worse abroad. The greenback’s strength is resulting in even more devaluation of global currencies.
Buy gold and wait, don’t wait to buy gold.
At this point, inflation is entrenched. It’s showing no signs of relenting and central banks globally are responding with large-scale rate hikes. Some central banks are on the brink of total collapse. As people lose faith in the fiat systems, the prospect of gold and silver is becoming more and more enticing.
Gold has proven to be a good investment for centuries, especially during times of economic uncertainty. As inflation rises, gold tends to increase in value, allowing investors to shield their wealth from the unpredictable volatility of market conditions. Take advantage of gold’s temporary dip to buy in cheap before the price of gold jumps higher.
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