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Money Metals News Alert
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November 25, 2024
– The slide in gold and silver prices which began in late October may have
ended last week. Silver prices gained a bit over $1/oz and gold jumped by more
than $150/oz. That said, there has been a pullback today.
Stock prices also gained ground. The
dollar index (DXY) hit its highest levels in more than 2 years. And 10-year bond
yields faded slightly, to close at 4.41%.
Investors remain confident that the
return of Donald Trump augurs well for the U.S. economy.
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Gold : Silver Ratio (as of
Friday's closing prices) – 86.4 to
1
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Elon Musk Targets the Fed
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Elon Musk offered to include Ron Paul
in the Department of Government Efficiency (DOGE) – a presidential advisory
commission headed by Musk and Vivek Ramaswamy.
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DOGE is tasked with
finding waste, fraud and abuse in the federal government and making
recommendations for how to eliminate it.
Although he has always
railed against excessive government spending, Ron Paul may be most remembered for
his efforts to do away with the Federal Reserve. ???End the Fed??? was a signature
issue in his 2008 and 2012 presidential campaigns.
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???End the Fed??? went viral on X shortly
after Musk publicized his interest in working with Ron Paul. Eliminating the
central bank just might be the single greatest blow reformers could strike in the
effort to restore limited government.
For starters, the Fed facilitates the
unrestrained growth in government.
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Multi-trillion-dollar
federal deficits are only possible year after year when the central bank can beam
infinite quantities of Federal Reserve Note dollars into existence.
Prior to lifting the final
constraint imposed by the nation???s gold standard in 1971, total
federal expenditures totaled just over $195 billion and government spending as
a percentage of the nation's overall GDP was 18.8%.
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Federal expenditures this year are
estimated at roughly $829 billion in 1971-adjusted dollars. The size of
government, as measured by real spending, has more than quadrupled. The federal
government now represents more than 24% of GDP.
Prior to the creation of the Fed in
1913, federal spending was less than 4% of GDP.
Meanwhile, the national debt has
continued on an exponential curve higher and currently sits at just over $36
trillion.
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The Fed is also an
important tool wielded by elites to enrich themselves, at the expense of the poor
and middle class. The Fed and its fiat dollar have been a nightmare
for the bottom 90% of Americans.
This group has lost about
$2.5 trillion per year to elites in the top 10% of wealth over the past 5 decades,
according to the Rand Corporation.
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Fed-sponsored bank bailouts are just
one of the ways this wealth transfer occurs.
Take the 2008 bailouts, for example.
The Fed used freshly printed dollars to purchase failing mortgage-backed
securities and other toxic assets at 100 cents on the dollar from struggling
banks. In all, The Fed???s Troubled Asset Relief Program (TARP) represented a gift
of $700 billion to the nation???s largest banks and their shareholders.
The nation???s central bank is a black
box when it comes to its finances. For more than 100 years, the Fed has resisted
all attempts to audit its books and be accountable for its actual spending. Fed
officials simply talk about how important it is for the central bank to maintain
???independence.???
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The Fed has also been a
complete and utter failure at the mission for which it was created and sold to the
public. The dual mandate imposed on the Fed at its creation included preserving
the value of the U.S. dollar and fostering full employment.
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The Federal Reserve's version of the
dollar has given up more than 97% of its purchasing power since 1913. What???s more,
Fed officials have the gall to insist it's a good thing for average Americans if
dollars buy less every year. They openly promote a ???target??? inflation rate of
about 2%.
Price inflation has made it nearly
impossible for many households to get by on a single income. Much of that gap has
been filled instead by welfare and other government assistance programs.
Since its creation, the Federal
Reserve has taken on a third mandate. It is the chief regulator for U.S. banks.
The nation's largest private banks are
the real owners of the Federal Reserve, though most Americans assume, given its
name, the central bank is owned by the federal government. Its role as primary
regulator is also not widely known outside of Washington DC and Wall Street.
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It will therefore be a
surprise to many to learn the Fed is in charge of enforcing the rules governing
the very banks which own it.
No large bank has ever
lost its license to operate, regardless of the crimes committed. These include
money laundering for drug and sex traffickers, rigging markets, and more. A visit
to WallStreetonParade.com is worthwhile for anyone interested looking at the
rap-sheets.
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Ending the Fed would be a blessing for
rank-and-file Americans. Here???s hoping the movement can make a comeback.
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This week's Market Update was
authored by Money Metals Director Clint Siegner.
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