Got gold ? The Most Conservative Scenario
In the wake of the 2008 crisis, the Federal Reserve printed $3.7 trillion out of thin air, which translated into growing its balance sheet by about five times.
The U.S. federal government debt also doubled in the same period.
The price of gold went up by approximately 2.5 times. Using these benchmarks, we can project that we’re looking at the following:
- A Federal Reserve balance sheet increasing by five times to $20 trillion, which translates into about $15 trillion in new currency created out of thin air.
- The U.S. federal government debt doubling, going over $48 trillion.
- Gold prices going up 2.5 times to about $4,600 an ounce.
Let me emphasize that I consider this to be the most conservative scenario. It’s using benchmarks from the 2008 crisis. The current crisis is orders of magnitude larger.
That’s why I expect the Fed’s balance sheet, the federal debt, and the price of gold to all go up even more.
People are increasingly seeing the insanity that central banks are doing.
At the end of the day, gold is just about the only place to be.