Monetary Inflation factorAs the vertical ascent of that plotting shows, the Federal Reserve is monetizing debt in robust fashion. The Federal Reserve is now allowing the U.S. Congress and Obama Regime to determine the quantity of dollars that will exist. Regrettably, they have determined that the quantity of dollars will quite simply be whatever amount necessary to finance their spending. No political limit now exists on the quantity of U.S. dollars that will be created!
Never in history in times of peace has the monetary hegemon so abandoned monetary restraint. Never in history has such an avalanche of money been created without its value falling. Is the coming destruction of the U.S. dollar’s value intentional or due to ineptness? Whichever, the consequences will be the same.
Some worry had developed that the rate of increase of U.S. monetary inflation, as shown in the following chart, might be slowing. Such a development might have meant the price of Gold might rest, or slow its rise. Alas, that is not to be the case, as U.S. monetary inflation is continuing to rise. That points to higher $Gold prices in the future.
A move of $Gold price in the above chart to a new high would confirm that Wave V is in process of unfolding. That is the part of the wave structure for which many of you have patiently waited. Acknowledgment by so many government leaders of the problems with a U.S. dollar-centric financial system may mean a heightened role for Gold, and a far more exciting Wave V. Era of fiat money is passing, and investors should be adding to their Silver & Gold holdings in all periods of price weakness.
Ned W. Schmidt
CFA,CEBS,
publisher of The Value View Gold Report