from The Daily Economist
Quantitative easing (QE) has been the primary tool, along with zero percent interest rates, for central banks to increase liquidity and to try to stimulate the economy over the past four years. And with that money expansion they have purchased sovereign bonds, municipal bonds, mortgage bonds, and even stocks.
But the one thing they haven’t bought is gold, which ironically is the most sound form of money available.
Yet as these central banks run out of assets to purchase, as seen by the incredible deflation that began to surface in nearly all assets in the middle of last year, an economist with the world’s largest bond insurer has suggested that it is time for central banks to not only buy gold, but to also monetize it in their QE purchases.