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Dear Fellow Investor,
For over a year, I’ve been predicting that the Fed would have to cease its campaign of rate hikes right about this time, and that the next step would be to begin easing once again.
I also predicted that the Fed would then be forced to quickly return to quantitative easing.
That prediction got a major vote of support today, from none other than President Donald Trump.
As he departed the White House this morning and was walking toward the Marine One helicopter, Trump offered the following view on Fed policy: “In terms of quantitative tightening, it should absolutely now be quantitative easing.”
This led to a round of cheers from gold bulls and bugs the world over, and in reaction the gold price rebounded from a significant early-session sell-off to rise back into the green.
But gold bugs should be careful what they ask for. In actuality, these comments by President Trump will likely harden the Fed’s resistance to lowering rates or embarking on a new round of QE.
I don’t think it will matter much in the long run, as the Fed will have to back-track eventually. But Trump’s running commentary will delay things as the Fed resists the appearance of being influenced.
More substantively, Trump has also nominated two Fed critics to the central bank’s board. The nominees — Stephen Moore and Herman Cain — also happen to be fans of a return to a gold standard.
On Wall Street and within the Washington beltway, noting that Moore and Cain support a gold standard is akin to simply calling them crazy.
Anyone with a lick of sense knows that endless spending and federal debt loads that guarantee the devaluation of the dollar are the truly crazy policies...but that’s beside the point I’m making here.
Which is this: We are approaching a crossroads where the devaluation of the dollar will become necessary and obvious to all.
The next step in this process will be a return to easy-money policies by the Fed, with initial rate cuts quickly followed by quantitative easing.
President Trump’s prodding won’t push the Fed to act more quickly; in contrast, it will only harden their resistance.
What we need to focus on is not so much the timing of this process, as its inevitability.
Make sure you’re ready with a sufficient position in gold and silver, because our entire monetary system — and your wealth — will be at stake.
Let’s Meet Up...
I’ve had a busy year so far with conferences and speaking appearances, and I’m looking forward to what seems to be (for now) a nice break in April. But I get right back on the road after that.
Here’s a summary of my appearances for the rest of the year, and how you can sign up to join me:
The MoneyShow Las Vegas — May 13-15, 2019. Always a fun event, I have a busy schedule here with panels, workshops and presentations.
The MoneyShow Seattle — June 15-16, 2019. A new stop for MoneyShow, this Seattle event should be very interesting with a focus on metals and mining.
Sprott Natural Resource Symposium — July 17-20. As I like to tell him, Rick Rule’s event has grown to become the “second best” stop for resource-oriented investors. If you’re invested in the sector, you simply can’t miss this value-packed event.
The New Orleans Investment Conference — November 1-4, 2019. Of course, no schedule is complete without the “granddaddy” of investment events. New Orleans is the event of the year for not only metals and mining investors, but also every serious investor interested in cutting-edge analysis of geopolitics, economics and developing trends in every asset class.
The 2019 Money, Metals and Mining Cruise — December 6-14, 2019. This is an ultra-exclusive opportunity, with only room for about 20-30 investors to join Rick Rule, Mary Anne and Pamela Aden, Mike Larson and me on a luxurious, nine-day tour of the jewels of the Western Caribbean.
We’ll touch the fabled ports of St. Thomas, St. Barts, St. Lucia, Saint Kitts and Nevis, Tortola and San Juan, Puerto Rico, while enjoying valuable, intimate seminars and lively social events with our world-renowned speakers.
I hope you’ll be able to join me at one or more of these outstanding events!
Another Fascinating Podcast!
Our most recent guest on the Gold Newsletter Podcast was none other than Dave Collum, a professor of organic chemistry at Cornell and one of the most entertaining and outspoken libertarian-minded commentators around today.
Dave’s very active on Twitter, which is where I “found” him. I’m pleased to say that his views are not only insightful and brilliant (as you’d expect from a Chemistry PhD), but they also align very closely with mine.
As you can imagine from someone with such a background, our discussion covered a lot of ground. You’ll find it very entertaining and enlightening, and I urge you to listen by clicking here.
All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
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