Thursday , 28 March 2024

Fed Announces Gold Standard To Be Phased In Starting July 4th!

Earlier today Federal Reserve Chairman Jerome Powell made the surprising  Fed chair jerome powellannouncement of the return to the gold standard saying, “The safest way for the economy to proceed is through a new system that holds more accountability for the U.S. dollar and its value in the global markets.”

The original article has been edited here for length (…) and clarity ([ ]) to provide a fast & easy read by Lorimer Wilson, Managing Editor of munKNEE.com (Your KEY To Making Money!).

The Gold Standard

In something of a mea culpa moment, [Powell] admitted that while the increased money supply has done well to prop up markets for the time being, it is not a sustainable solution. The reversion to the gold standard, he hopes, will allow the economy to march forward in a more stable manner. “The flexibility of a fiat currency has guided the U.S. through the toughest era since the Great Depression, but the time has come for a change,” said Powell…

One important thing to note is that the timeline for the return will be relatively drawn out and smooth. The Fed mandates that by 2025 all currency must be backed by at least 30% of its value in gold. That figure will increase to 50% by 2027 and to 100% by 2029. The move brings up a number of big questions, like whether or not the Fed will audit Fort Knox or other institutions that conspiracy theorists have been attacking for years. For now, we will have to wait for more specifics, but investors can already begin preparing.

Prepping for a Gold Standard

With a hard 2-year timeline, investors [should] begin allocating [some of their assets] into gold as this move will surely spark interest in the commodity. Some may choose to utilize stocks and ETFs, but physical bullion will likely be the most popular, as this will likely spark fears of a gold confiscation in order for the Fed to have enough bullion to justify the move. While a confiscation is extremely unlikely, there are those who still fear such a move….

The Bottom Line

With such monumental news coming seemingly out of nowhere, there is something that investors need to keep in mind. 

[Happy April Fool’s Day to all. Feel free to “get” your friends and co-workers with this article!]

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One comment

  1. Price inflation has already taken off: food, gasoline, electricity, medical care (medications, medical services), insurance, every day vitally important necessities have all advanced significantly over the past several years. The turn to the gold denominated national currency is obviously the right move to make by the Government. It must be done and it is unavoidable.

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