by David Kranzler
Investment Research Dynamics
And it’s not just gold. The Fed is already hinting that more money printing is coming. Powell suggested at his semi-annual Congressional testimony that QE would be used in the next recession. A couple other Fed officials this week confirmed that the FOMC is preparing to crank up the printing press even more than it has been running since mid-September.
But why does the Fed feel compelled to warn us that more money printing/currency devaluation is coming if, a Powell told Congress, “the economy is in a good place?”
To begin with, money printing is not stimulating economic growth. The economy has been sliding into contraction for quite some time. Since the “repo” operations began, that pace of contraction has increased.