by David Forest
“Hi, Casey gang. I really, really appreciate you guys. Will gold stocks sink as deep as they did in March if we have another crash? Why or why not?” – Daniel L.
Hi, Daniel. Thanks for your question.
Since the corona crash in March, the Fed has pumped out $3 trillion in new money supply. There’ll be more coming.
It’s possible the Fed’s helicopter-money tactics might work. [“Helicopter money” is when a central bank balloons the money supply by directly topping up people’s bank accounts.]
Intuitively, made-up money shouldn’t solve real economic problems. But it worked in 2008. It might get us through the current crisis as well.